John Hancock Preferred Income ETF (JHPI)

Overview

The John Hancock Preferred Income ETF (HPI) seeks to provide a high level of current income by investing primarily in preferred securities.

Reputation and Reliability

John Hancock is a well-established asset manager with a long history in the financial services industry, known for its reliability and diverse range of investment products.

Management Expertise

John Hancock has a team of experienced professionals dedicated to managing preferred securities portfolios, with expertise in credit analysis and interest rate management.

Goal

To provide a high level of current income.

Investment Approach and Strategy

Strategy: The fund invests primarily in preferred securities of U.S. and foreign companies, emphasizing credit analysis and sector diversification.

Composition The ETF holds a portfolio of preferred stocks and other income-producing securities, predominantly from the financial sector.

Market Share: HPI's market share in the preferred income ETF sector is moderate.

Total Net Assets (AUM): 554560000

Key Competitors

• PGX
• PFF
• SPFF
• PSK

Competitive Landscape

The preferred income ETF market is competitive with several large players. HPI competes based on its active management and potential for higher yield, but faces challenges from lower-cost, passively managed funds. Its active management allows it to potentially outperform during times of market stress but adds additional expense in management fees.

Historical Performance: Historical performance data is readily available from various financial websites (Yahoo finance, Bloomberg, etc).

Benchmark Comparison: The ETF's performance should be compared to a broad preferred stock index like the ICE BofA US Preferred Stock Index.

Expense Ratio: 0.49

Average Trading Volume

The ETF's average trading volume is moderate, suggesting reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically narrow, indicating relatively low trading costs.

Market Environment Factors

Economic indicators like interest rates and inflation, sector-specific factors affecting financial institutions, and overall market sentiment influence the ETF's performance.

Growth Trajectory

The ETF's growth depends on its ability to attract assets through strong performance and effective marketing.

Competitive Edge

HPI's competitive edge lies in its active management strategy, which allows it to potentially outperform passively managed preferred stock ETFs. The active management team selects securities based on in-depth credit analysis. This can result in higher income generation, specifically during volatile market conditions. This approach differentiates HPI from competitors focusing on broader market exposure.

Volatility

The ETF's volatility is moderate, reflecting the nature of preferred securities and the active management strategy.

Market Risk

Market risks include interest rate risk (as preferred stocks are sensitive to interest rate changes), credit risk (the risk of issuer default), and sector concentration risk (as the ETF is heavily invested in the financial sector).

Ideal Investor Profile

The ideal investor is someone seeking a high level of current income, with a moderate risk tolerance, and a long-term investment horizon.

Market Risk

This ETF is best suited for long-term investors seeking income rather than short-term gains, and comfortable with moderate risk and actively managed investment strategies.

The John Hancock Preferred Income ETF (HPI) offers investors exposure to preferred securities with the potential for high current income through active management. While its expense ratio is higher than passively managed competitors, its active strategy aims to outperform in varying market conditions. The ETF's performance is influenced by interest rates, credit spreads, and the overall health of the financial sector. HPI is suitable for income-seeking investors with a moderate risk tolerance and a long-term perspective. Potential investors should consider HPI's strategy when compared to passive options to determine which best matches their goals.

Data Sources:

• John Hancock Investment Management
• ETF.com
• Yahoo Finance
• Bloomberg

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market data and fund details are subject to change.