John Hancock Multifactor Emerging Markets ETF (JHEM)

Overview

The John Hancock Multifactor Emerging Markets ETF (JHEM) seeks to provide investment results that closely correspond to the performance of the John Hancock Dimensional Emerging Markets Index. The fund focuses on investing in a diversified portfolio of emerging market equities, using a multifactor approach to select stocks with higher profitability, lower relative price, and smaller size.

Reputation and Reliability

John Hancock is a well-established financial services company with a long history and a reputable track record in the investment management industry.

Management Expertise

John Hancock Investment Management has a team of experienced investment professionals specializing in factor-based investing and emerging markets.

Goal

The investment goal of JHEM is to provide investment results that closely correspond to the performance of the John Hancock Dimensional Emerging Markets Index.

Investment Approach and Strategy

Strategy: JHEM aims to track the John Hancock Dimensional Emerging Markets Index, which employs a multifactor investment strategy.

Composition The ETF holds a diversified portfolio of stocks from emerging market countries, selected based on factors such as profitability, value, and size.

Market Share: Data unavailable to calculate precise market share.

Total Net Assets (AUM): 390000000

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets ETF space is highly competitive, with several large players dominating the market. JHEM differentiates itself with its multifactor approach, which aims to outperform market-cap weighted indexes. However, its smaller AUM compared to VWO and IEMG can impact liquidity and trading costs. JHEM's multifactor strategy gives it an edge in potentially higher returns but introduces complexity compared to simpler market-cap weighted ETFs.

Historical Performance: Historical performance data should be gathered from reliable sources such as the fund's factsheet, Morningstar, or Bloomberg. Providing raw numbers is not possible without live data.

Benchmark Comparison: Benchmark comparison needs live data from reliable sources. Comparing JHEM's performance against the John Hancock Dimensional Emerging Markets Index is crucial.

Expense Ratio: 0.49

Average Trading Volume

The average trading volume of JHEM is moderate, reflecting its relative size within the emerging markets ETF landscape.

Bid-Ask Spread

The bid-ask spread for JHEM is typically reasonable, though it can widen during periods of market volatility.

Market Environment Factors

Emerging market equities are influenced by factors such as global economic growth, currency fluctuations, commodity prices, and geopolitical events.

Growth Trajectory

JHEM's growth trajectory depends on its ability to attract investors seeking factor-based exposure to emerging markets, as well as its performance relative to its benchmark and competitors. Changes in strategy and holdings are updated by the fund's management team periodically.

Competitive Edge

JHEMu2019s competitive advantage lies in its multifactor investment strategy, focusing on profitability, value, and size factors. This approach aims to generate superior risk-adjusted returns compared to traditional market-cap weighted ETFs. The fund's factor-based approach offers a unique and diversified approach to emerging market exposure. However, the ETF's lower AUM may limit its appeal to larger institutional investors compared to competitors with higher trading volumes and liquidity. John Hancock's reputation adds credibility.

Volatility

Emerging markets are inherently more volatile than developed markets, which can lead to fluctuations in JHEM's price.

Market Risk

JHEM is exposed to various market risks, including currency risk, political risk, and economic risk associated with emerging market countries.

Ideal Investor Profile

The ideal investor for JHEM is someone seeking long-term capital appreciation and willing to accept the higher volatility associated with emerging market equities. Investors who understand and believe in factor-based investing may also be particularly interested.

Market Risk

JHEM is best suited for long-term investors with a higher risk tolerance seeking diversified exposure to emerging markets, making it appropriate for strategic allocation rather than short-term trading.

The John Hancock Multifactor Emerging Markets ETF (JHEM) offers exposure to emerging market equities through a multifactor investment strategy that focuses on profitability, value, and size. While it offers a unique approach compared to market-cap weighted ETFs, its relatively smaller AUM could affect liquidity. JHEM is suitable for long-term investors with a higher risk tolerance who understand and seek factor-based investing in emerging markets. However, potential investors should carefully consider the fund's expense ratio and trading costs before investing.

Data Sources:

• John Hancock Investment Management
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data may not be perfectly accurate due to reporting lags and varying data sources. Performance data is not a guarantee of future results. Consult with a qualified financial advisor before making any investment decisions.