John Hancock Multifactor Developed International ETF (JHMD)

Overview

The John Hancock Multifactor Developed International ETF (JHMD) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the John Hancock Dimensional Developed International Index. It utilizes a multifactor approach, overweighting stocks with smaller capitalization, higher profitability, and lower relative price.

Reputation and Reliability

John Hancock is a well-established financial services provider with a long history. They are generally considered reliable.

Management Expertise

John Hancock Investment Management has a dedicated team with expertise in quantitative investing and factor-based strategies.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the John Hancock Dimensional Developed International Index.

Investment Approach and Strategy

Strategy: The ETF aims to outperform the broad developed international market by systematically emphasizing stocks with favorable size, value, and profitability characteristics.

Composition Primarily holds stocks of companies located in developed international markets (excluding the United States).

Market Share: JHMD holds a relatively small market share compared to larger, more established international ETFs.

Total Net Assets (AUM): 108900000

Key Competitors

• VEA
• IXUS
• SCHF
• IDEV

Competitive Landscape

The international developed market ETF space is highly competitive, dominated by large, low-cost index funds. JHMD attempts to differentiate itself through its multifactor approach, but faces challenges in attracting assets given the low fees and established track records of its competitors. JHMD offers potential outperformance if factor tilts are rewarded by the market, but this comes at the cost of higher expense ratios and potential underperformance if the factors are out of favor.

Historical Performance: Historical performance data is readily available on financial websites, but specific numbers should be sourced from reputable financial data providers.

Benchmark Comparison: The ETF's performance should be compared to the John Hancock Dimensional Developed International Index to assess its tracking effectiveness.

Expense Ratio: 0.29

Average Trading Volume

The average trading volume for JHMD is relatively low, which may impact execution costs.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions and trading volume, but is usually wider than highly liquid ETFs.

Market Environment Factors

Economic growth in developed international markets, interest rate policies of foreign central banks, and geopolitical events can significantly impact the ETF's performance.

Growth Trajectory

Growth depends on the fund's ability to attract assets based on its multifactor strategy and overall performance. The strategy and holdings are subject to change per John Hancock.

Competitive Edge

JHMD's competitive advantage lies in its multifactor investment approach, which systematically tilts the portfolio towards stocks with characteristics that have historically been associated with higher returns. It is actively managed, however, that active style may be good or bad depending on the portfolio management skills. The ETF targets smaller companies with higher profitability and lower relative prices, potentially providing diversification and outperformance compared to broad market-cap-weighted indexes. This may lead to positive returns for investors compared to just a simple index ETF.

Volatility

The ETF's volatility will be similar to that of the developed international market, but may be slightly higher due to its factor tilts.

Market Risk

The ETF is subject to market risk associated with investing in international equities, including currency fluctuations, political instability, and economic downturns.

Ideal Investor Profile

Investors seeking exposure to developed international equities with a preference for a factor-based approach and a willingness to accept slightly higher expenses than broad market index funds.

Market Risk

Suitable for long-term investors seeking diversification and potential outperformance through factor investing.

The John Hancock Multifactor Developed International ETF offers exposure to developed international equities with a multifactor approach, targeting companies with favorable size, value, and profitability characteristics. Its performance is closely tied to the success of its factor tilts. While it differentiates itself from broad market index funds, it faces competition from larger, lower-cost ETFs. Investors should consider their risk tolerance, investment objectives, and time horizon before investing.

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. Investors should consult with a qualified financial advisor before making any investment decisions.