John Hancock Multifactor Emerging Markets ETF (JHEM)

Overview

The John Hancock Multifactor Emerging Markets ETF (JHME) seeks to provide investment results that closely correspond to the performance of the John Hancock Dimensional Emerging Markets Index. It uses a multifactor approach, selecting stocks based on profitability, value, and size, to potentially outperform the broad emerging markets. The fund primarily invests in equities of emerging market companies.

Reputation and Reliability

John Hancock is a well-established financial services provider with a long history. Their ETF offerings are generally considered reliable and professionally managed.

Management Expertise

John Hancock Investment Management has a dedicated team of investment professionals with experience in quantitative investing and emerging markets.

Goal

To provide investment results that closely correspond to the performance of the John Hancock Dimensional Emerging Markets Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the John Hancock Dimensional Emerging Markets Index, which uses a multifactor approach focusing on profitability, value, and size.

Composition The ETF primarily holds stocks of companies located in emerging market countries.

Market Share: JHMEu2019s market share is relatively small compared to major emerging market ETFs.

Total Net Assets (AUM): 96200000

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 market ETF landscape is dominated by large, low-cost providers like Vanguard and iShares. JHME differentiates itself through its multifactor investment strategy, which may appeal to investors seeking enhanced returns. However, it faces competition from other factor-based ETFs as well as broad market ETFs.

Historical Performance: Performance data needs to be accessed from financial data providers. The following placeholders are for structuring the data:[1-Year Return, 3-Year Return, 5-Year Return]

Benchmark Comparison: Performance data needs to be accessed from financial data providers and compared with benchmark

Expense Ratio: 0.49

Average Trading Volume

Average trading volume can fluctuate but the ETF has a moderate trading volume.

Bid-Ask Spread

The bid-ask spread is usually tight for the ETF, implying low trading costs.

Market Environment Factors

Economic growth in emerging markets, interest rate policies, and global trade conditions influence JHME's performance.

Growth Trajectory

JHME's growth depends on the attractiveness of its multifactor strategy and the overall performance of emerging markets.

Competitive Edge

JHME's competitive advantage lies in its multifactor investment approach, which seeks to outperform traditional market-cap-weighted indexes. By focusing on stocks with attractive value, profitability, and size characteristics, the fund aims to deliver superior risk-adjusted returns. This approach may appeal to investors seeking a more sophisticated strategy than simple index tracking. However, whether these factors can consistently lead to outperformance is uncertain, and higher fees may erode any potential gains.

Volatility

Emerging market equities are generally more volatile than developed market equities. JHME's multifactor approach may slightly mitigate volatility, but it remains a risk factor.

Market Risk

JHME is exposed to market risk associated with emerging market equities, including political instability, currency fluctuations, and economic downturns.

Ideal Investor Profile

The ideal investor is someone seeking exposure to emerging market equities with a preference for a multifactor investment approach. They should be comfortable with the higher volatility associated with emerging markets and have a long-term investment horizon.

Market Risk

JHME is more suitable for long-term investors who believe in the potential of emerging markets and are comfortable with a factor-based strategy.

The John Hancock Multifactor Emerging Markets ETF (JHME) offers exposure to emerging market equities using a multifactor investment strategy, focusing on value, profitability, and size. Its competitive edge rests on potentially outperforming broad market indexes through factor-based selection. While it offers a differentiated approach, the fund competes with larger, lower-cost ETFs in the emerging market space. Investors should consider their risk tolerance and investment goals before investing, keeping in mind the volatility inherent in emerging markets.

Data Sources:

• John Hancock Investment Management Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market share data is based on available information and may not be exact.