John Hancock Multifactor Mid Cap ETF (JHMM)

Overview

The John Hancock Multifactor Mid Cap ETF (JHMM) seeks to provide investment results that closely correspond to the performance of the John Hancock Dimensional Mid Cap Index. It employs a multifactor approach, focusing on companies with relatively high profitability, low relative price, and small size within the mid-cap market.

Reputation and Reliability

John Hancock Investment Management is a well-established asset manager with a long history in the financial services industry. They are known for their factor-based investment strategies.

Management Expertise

The management team has experience in quantitative investing and factor-based portfolio construction.

Goal

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

Investment Approach and Strategy

Strategy: The ETF aims to track the John Hancock Dimensional Mid Cap Index, which selects mid-cap companies based on profitability, relative price, and size factors.

Composition The ETF primarily holds stocks of mid-sized U.S. companies. It's designed to provide exposure to a diversified portfolio of mid-cap equities.

Market Share: JHMM's market share within the mid-cap ETF sector is relatively modest compared to larger, more established funds.

Total Net Assets (AUM): 1709000000

Key Competitors

• IJH
• VO
• MDY
• IWR

Competitive Landscape

The mid-cap ETF market is highly competitive with several large players dominating the space. JHMM differentiates itself through its multifactor approach and focus on profitability, value, and size. However, it faces stiff competition from index-tracking ETFs with lower expense ratios.

Historical Performance: Historical performance data for JHMM should be reviewed over various time periods (1yr, 3yr, 5yr, 10yr) to assess its long-term track record.

Benchmark Comparison: The ETF's performance should be compared to the Russell Midcap Index or S&P MidCap 400 to evaluate its effectiveness in achieving its investment objective.

Expense Ratio: 0.29

Average Trading Volume

JHMM's average trading volume indicates moderate liquidity, potentially impacting the ease of trading large positions.

Bid-Ask Spread

The bid-ask spread represents the cost of trading JHMM, and a narrower spread generally indicates higher liquidity and lower transaction costs.

Market Environment Factors

Economic growth, interest rates, inflation, and sector-specific trends influence the performance of mid-cap companies within JHMM.

Growth Trajectory

JHMM's growth trajectory depends on its ability to attract assets and maintain consistent performance relative to its benchmark and peers. Changes to strategy will significantly affect holdings.

Competitive Edge

JHMM's competitive advantage lies in its multifactor approach, which seeks to identify mid-cap companies with attractive characteristics based on profitability, value, and size. This strategy differentiates it from simple index-tracking ETFs. John Hancock's reputation may add slight value. The fund's relative small size may allow for greater impact from individual stock selections. However, the fund is still relatively new compared to competitors.

Volatility

Assess JHMM's historical volatility using metrics such as standard deviation and beta to understand its price fluctuations relative to the market.

Market Risk

The underlying assets of JHMM, mid-cap stocks, are subject to market risk, including economic downturns, industry-specific challenges, and company-specific factors.

Ideal Investor Profile

The ideal investor for JHMM is someone seeking diversified exposure to mid-cap equities with a focus on factor-based investing. This ETF is appropriate for investors who want to outperform the broad market, by tilting towards more profitable, undervalued and small mid-caps

Market Risk

JHMM may be suitable for long-term investors seeking to enhance their portfolio's risk-adjusted returns through factor-based investing. It could be used by passive investors looking for a slightly more active bent, but not active traders.

The John Hancock Multifactor Mid Cap ETF (JHMM) offers exposure to mid-cap U.S. equities, with a focus on profitability, value, and size factors. While it offers a differentiated approach, its expense ratio may be a drawback compared to cheaper index-tracking alternatives. Potential investors should consider their risk tolerance, investment horizon, and the ETF's historical performance when making a decision. JHMM is a multifactor alternative to standard index midcap investing, for investors with a focus on metrics.

Data Sources:

• John Hancock Investment Management website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market data and analytics are subject to change.