John Hancock Exchange-Traded Fund Trust - John Hancock Mortgage Backed Securities ETF (JHMB)

Overview

The John Hancock Mortgage Backed Securities ETF seeks to provide investors with exposure to the U.S. mortgage-backed securities (MBS) market. It primarily invests in a diversified portfolio of agency mortgage-backed securities, aiming to generate income and capital appreciation.

Reputation and Reliability

John Hancock is a well-established financial services company with a long history and a strong reputation for reliability in asset management.

Management Expertise

The ETF is managed by a team with extensive experience in fixed-income investing, specifically within the mortgage-backed securities sector, leveraging John Hancock's broad investment capabilities.

Goal

To provide investors with attractive current income and capital appreciation through investment in U.S. mortgage-backed securities.

Investment Approach and Strategy

Strategy: The ETF aims to track the performance of a specific segment of the mortgage-backed securities market, rather than a broad index, by actively managing its portfolio.

Composition The ETF primarily holds U.S. agency mortgage-backed securities, which are backed by government-sponsored entities like Fannie Mae and Freddie Mac. The portfolio is diversified across various MBS types and maturities.

Market Share: Specific market share data for this individual ETF within the broader MBS ETF market is not readily available as a standalone percentage. However, it operates within a competitive segment.

Total Net Assets (AUM): 1350000000

Key Competitors

• iShares MBS ETF (MBB)
• Vanguard Mortgage-Backed Securities ETF (VMBS)
• SPDRu00ae Bloomberg Barclays Mortgage Backed Securities ETF (MBGA)

Competitive Landscape

The mortgage-backed securities ETF market is competitive, with several large issuers offering similar products. John Hancock's ETF benefits from the issuer's brand recognition and investment expertise. However, it faces strong competition from ETFs with larger AUM and potentially lower expense ratios from firms like iShares and Vanguard, which can offer economies of scale and broader investor appeal. The key advantages for John Hancock's ETF may lie in its specific investment strategy and portfolio construction within the MBS space.

Historical Performance: The ETF has shown moderate returns, with performance influenced by interest rate movements and the overall health of the housing market. Specific year-over-year returns are available through financial data providers.

Benchmark Comparison: Performance is typically benchmarked against relevant mortgage-backed securities indices, such as the Bloomberg U.S. Mortgage-Backed Securities Index. The ETF aims to closely track its benchmark.

Expense Ratio: 0.25

Average Trading Volume

The ETF generally exhibits sufficient average trading volume to ensure reasonably liquid trading for most investors.

Bid-Ask Spread

The bid-ask spread for this ETF is typically narrow, indicating efficient pricing and low transaction costs for active traders.

Market Environment Factors

The ETF is significantly influenced by macroeconomic factors such as interest rate policies set by the Federal Reserve, inflation expectations, and the stability of the U.S. housing market. Changes in these factors can impact MBS prices and yields.

Growth Trajectory

The growth of the John Hancock Mortgage Backed Securities ETF is tied to investor demand for fixed-income products, particularly those offering exposure to the MBS market. Any adjustments to strategy would likely be in response to evolving market conditions and investor needs.

Competitive Edge

John Hancock Mortgage Backed Securities ETF's competitive edge stems from its focus on a specific, often complex, segment of the fixed-income market. Its advantage lies in the issuer's established expertise in mortgage-related investments and its ability to construct a diversified portfolio of agency MBS, providing investors with a convenient way to access this asset class. The ETF's structured approach aims to deliver consistent income and capital preservation in line with market trends.

Volatility

The ETF's historical volatility is generally moderate, characteristic of fixed-income securities, but can increase with significant interest rate fluctuations.

Market Risk

Key risks include interest rate risk (as bond prices fall when rates rise), prepayment risk (borrowers refinancing or selling homes, altering expected cash flows), and credit risk associated with the underlying mortgages, although agency MBS have government backing mitigating this.

Ideal Investor Profile

This ETF is suitable for investors seeking to diversify their fixed-income portfolio with exposure to mortgage-backed securities, aiming for regular income generation and some capital appreciation.

Market Risk

It is generally best suited for long-term investors who understand the risks associated with fixed-income investments and are looking for a relatively stable income stream rather than aggressive growth.

The John Hancock Mortgage Backed Securities ETF offers investors targeted exposure to U.S. agency mortgage-backed securities, aiming to provide income and capital appreciation. Managed by an experienced team from John Hancock, it navigates the complexities of the MBS market. While facing competition, its structured approach and issuer reputation make it a notable option for fixed-income investors. The ETF's performance is sensitive to interest rate movements and housing market dynamics, making it suitable for those with a long-term investment horizon.

Data Sources:

• John Hancock Investments Official Website
• Financial Data Providers (e.g., Bloomberg, Refinitiv, Morningstar)

Disclaimers:

This information is for educational purposes only and not financial advice. ETF performance can fluctuate, and past performance is not indicative of future results. Investors should consult with a financial advisor before making investment decisions.