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

Overview

The John Hancock Mortgage Backed Securities ETF (MORT) seeks to provide investment results that closely correspond to the performance of the Bloomberg U.S. Mortgage Backed Securities Index. It focuses on investing in mortgage-backed securities (MBS), primarily those issued and/or guaranteed by U.S. government agencies.

Reputation and Reliability

John Hancock is a well-established and reputable financial services company with a long history of managing investments.

Management Expertise

The management team has experience in fixed income investing and managing bond portfolios.

Goal

To track the Bloomberg U.S. Mortgage Backed Securities Index and provide investment results that closely correspond to its performance.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, seeking to replicate the index's composition and weightings.

Composition The ETF holds a portfolio of mortgage-backed securities, primarily those issued or guaranteed by U.S. government agencies such as Fannie Mae, Freddie Mac, and Ginnie Mae.

Market Share: MORT holds a moderate market share within the mortgage-backed securities ETF segment.

Total Net Assets (AUM): 123400000

Key Competitors

• iShares MBS ETF (MBB)
• Vanguard Mortgage-Backed Securities ETF (VMBS)
• SPDR Portfolio Aggregate Bond ETF (SPAB)

Competitive Landscape

The mortgage-backed securities ETF market is dominated by a few large players like iShares and Vanguard. MORT competes by offering a similar investment strategy but may differentiate itself through its expense ratio or other features. MORT faces strong competition and must effectively market its specific value proposition.

Historical Performance: Historical performance varies with interest rate changes and market conditions of mortgage-backed securities. Past performance does not guarantee future results.

Benchmark Comparison: The ETF's performance should closely track the Bloomberg U.S. Mortgage Backed Securities Index.

Expense Ratio: 0.27

Average Trading Volume

The average trading volume is moderately high which makes it relatively easy to buy and sell shares.

Bid-Ask Spread

The bid-ask spread varies but is generally tight, reflecting the ETF's liquidity.

Market Environment Factors

Economic indicators, interest rate movements, and housing market conditions significantly influence the performance of mortgage-backed securities and, consequently, MORT.

Growth Trajectory

The growth trajectory depends on the overall health of the housing market and interest rate environment. Changes in the index composition also affect the ETF.

Competitive Edge

MORT benefits from the established brand of John Hancock and its expertise in managing fixed-income assets. It provides investors with convenient access to a diversified portfolio of mortgage-backed securities. MORTu2019s focus on replicating the Bloomberg U.S. Mortgage Backed Securities Index offers a straightforward investment approach. The ETF's expense ratio compared to competitors could be a key differentiator. However, the primary advantage is the diversification and ease of access to the MBS market.

Volatility

Volatility is influenced by interest rate sensitivity and credit risk within the mortgage market. Rising interest rates can negatively impact the value of MBS.

Market Risk

The ETF is subject to market risk associated with changes in interest rates, prepayment risk, and credit risk related to the underlying mortgages.

Ideal Investor Profile

Investors seeking exposure to the mortgage-backed securities market for diversification or income purposes may find this ETF suitable.

Market Risk

This ETF is appropriate for long-term investors seeking stable income and diversification within a fixed income portfolio. It may not be suitable for active traders due to its focus on replicating an index.

John Hancock Mortgage Backed Securities ETF (MORT) offers a simple and efficient way to invest in the mortgage-backed securities market by tracking the Bloomberg U.S. Mortgage Backed Securities Index. It's managed by a reputable firm with experience in fixed income and comes with a reasonable expense ratio. Performance is closely tied to interest rate fluctuations and housing market trends. It is ideally suited for long-term investors seeking diversification and income through mortgage-backed securities, but its market share is less than its competition's.

Data Sources:

• John Hancock Investment Management Website
• Bloomberg
• Morningstar

Disclaimers:

This analysis is based on publicly available information and is intended for informational purposes only. Investment decisions should be based on thorough research and consultation with a financial advisor. Past performance is not indicative of future results.