AAEQ vs JSMD

AAEQBAlpha Architect US Equity 2 ETF

JSMDDJanus Henderson Small/Mid Cap Growth Alpha ETF

In short

AAEQ Plain US beta with a size floor: market-cap-weighted exposure to American stocks worth at least $1 billion, for 0.09% a year. It launched in December 2025, so the strategy is old-fashioned but the fund itself is brand new.

JSMD Since 2016, JSMD has run one quantitative screen on small- and mid-cap growth: roughly 300 names, measured against the Russell 2500 Growth Index, in the tier of companies sitting well below the mega-cap giants.

Stated mandate

AAEQ The Fund seeks long-term capital appreciation through broadly diversified exposure to the U.S. stock market, using market-cap-weighted exposure to U.S. stocks with market capitalization of at least $1 billion.

JSMD JSMD seeks long-term capital growth. It actively and systematically selects small- and mid-cap growth companies using quantitative methods and fundamental research, with portfolio optimization intended to manage risk.

Why people hold it

• AAEQ 0.09% a year, under half what the typical fund in its peer group charges.
• Boring by design: market-cap weighting, no stock picking, and a $1 billion size floor that screens out the market's smallest names.alphaarchitect.com
• The stated mandate is broad diversification across the US market, not a concentrated wager on a handful of names or one sector.alphaarchitect.com

• JSMD A quant model does the picking, backed by fundamental research and portfolio optimization for risk. Active stock selection, run by rules rather than a manager's gut.
• Roughly 300 holdings across small- and mid-cap growth, so no single name carries the fund in a corner of the market where individual stocks swing hard.
• Live since 2016, a multibillion-dollar asset base and steady volume mean the plumbing is well established for a strategy this specialized.
• Lands in the upper half of its peer group on our full review, holding its own alongside plain broad-market trackers like ILCB and GUSA.

Worth knowing

• AAEQ Trading is thin, so spreads can run wider than at the category's household names. How you place the order matters more here.
• It opened in December 2025, so there is little live history on how closely it tracks or how it handles a real drawdown.
• Cheap, but not the cheapest shelf in the aisle: ILCB covers broad US equity at 0.03%.

• JSMD At 0.30% a year it prices above the 0.20% peer median, and far above bare-bones beta such as ILCB at 0.03%. The screen is what you're paying for.
• Small- and mid-cap growth is one of the choppier lanes in US equities, and a growth-only screen can sit out of favor for long stretches.
• Distributions land quarterly, but the mandate is long-term capital growth; income is a byproduct, not the point.

Full AAEQ profile⁠

Full JSMD profile⁠