The US$40 billion ETF manager is seeking to turn overnight gap risk into an income-generating tool in conjunction with autocallable payoff.

Janus Henderson is taking a novel approach to establish a foothold in autocallable exchange-traded funds (ETFs) as competition in this niche segment intensifies . The active asset manager, which introduced its first covered call ETF last month, has added a sleeve of ‘stability instruments’ to its two new autocallable ETFs  in effort to generate high income by absorbing dealers’ gap risk. This appears to be the first instance in which these instruments—also known as