JAAA Hits $20 Billion AUM Milestone: How Janus Henderson Became a Fixed Income ETF Powerhouse

Janus Henderson’s AAA Collateralized Loan Obligation ETF (JAAA) has reached a major milestone, crossing the $20 billion in assets under management threshold. This achievement underscores the growing investor demand for accessible, high-quality floating-rate debt instruments that were historically reserved for institutional players.

From Niche Product to Market Leader

JAAA launched in October 2020 as one of the first ETFs to bring CLO exposure to retail investors. The fund has since evolved into the largest CLO ETF by AUM, commanding the top spot for year-to-date net inflows across all actively managed ETFs. According to Morningstar data from December 31, 2024, Janus Henderson now ranks as the third-largest active fixed income ETF provider globally.

The growth trajectory tells an impressive story: the fund started 2024 with $5.3 billion under management and closed the year at $16.6 billion—a stunning 200%+ increase in just twelve months. This explosive expansion reflects both the fund’s appeal and the broader market recognition of CLOs as a legitimate portfolio diversifier.

What Makes JAAA Stand Out

Managed by portfolio experts John Kerschner, Nick Childs, and Jessica Shill, JAAA seeks to deliver capital preservation and current income through high-quality AAA-rated CLO exposure. Unlike traditional bond ETFs, CLOs offer floating-rate returns that move with interest rate cycles, providing a natural hedge in rising-rate environments.

The fund democratized access to an asset class that once required minimum institutional commitments. By packaging CLOs into a liquid, tax-efficient ETF wrapper, Janus Henderson opened this market to wealth managers, financial advisors, and individual investors. The structure allows participants to gain exposure to below-investment-grade corporate loans bundled into tranches with varying risk profiles—while JAAA focuses exclusively on the safest AAA tier.

Validation and Competitive Positioning

The market has spoken: JAAA drew more inflows than any competing actively managed fixed income ETF throughout 2024. The firm’s broader CLO strategy also includes JBBB, which targets floating-rate exposure in the BBB segment, plus a European-focused CLO vehicle.

Janus Henderson’s innovation in this space earned recognition when Global Capital awarded the firm its inaugural CLO ETF Provider of the Year award in 2024. As of year-end, the parent company managed approximately $379 billion across 25 global offices, employing over 2,000 professionals.

The Macro Context

In an environment where short-term yields remain attractive but interest rate direction remains uncertain, investors increasingly seek exposure to assets that benefit from short-duration positioning. CLOs fit this profile—they generate current income through floating-rate coupons while avoiding the duration risk embedded in traditional fixed-rate bonds. This positioning has proven particularly relevant as portfolio managers reassess their fixed income allocation strategies across interest rate cycles.