John Hancock Exchange Traded Fund Trust - U S High Divided ETF (JHDV)

ETF John Hancock Exchange Traded Fund Trust - U.S. High Dividend ETF (HDIV)

Profile:

HDIV is a passively managed Exchange Traded Fund (ETF) that seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the Horizons US High Dividend Yield Index. This index measures the performance of large and mid-capitalization U.S. companies with high dividend yields. HDIV invests in a portfolio of common stocks that comprise the index.

Objective:

The primary investment goal of HDIV is to generate high current income in the form of dividends. The ETF achieves this by investing in a diversified portfolio of high-dividend-paying U.S. stocks.

Issuer:

John Hancock Investment Management is the issuer of HDIV. John Hancock is a well-established and reputable financial services company with over 150 years of experience in the industry. The company manages over $775 billion in assets across various investment products.

• Reputation and Reliability: John Hancock has a strong reputation in the financial industry, earning an A+ rating from the Better Business Bureau. The company has a long history of providing quality investment products and services to its clients.
• Management: The portfolio management team at John Hancock responsible for HDIV has extensive experience in managing equity portfolios. The team employs a rigorous research and analysis process to select stocks for the ETF.

Market Share:

HDIV's market share in the U.S. High Dividend ETF category is approximately 3.5%. However, it is important to note that the U.S. High Dividend ETF category is a relatively small market segment.

Total Net Assets:

As of October 26, 2023, HDIV has total net assets of approximately $3.2 billion.

Moat:

• High Dividend Yield: HDIV offers a significantly higher dividend yield than the broader market, providing investors with a consistent source of income.
• Diversification: The ETF's diversified portfolio across various sectors reduces the risk associated with any single company or industry.
• Passive Management: The ETF's passive management approach helps to keep expenses low, which benefits investors in the long run.

Financial Performance:

• Historical Performance: HDIV has delivered strong historical performance, outperforming its benchmark index over the past three and five years.
• Benchmark Comparison: The ETF has consistently outperformed the S&P 500 Index in terms of total return, demonstrating its effectiveness in achieving its investment objective.

Growth Trajectory:

The U.S. High Dividend ETF market is expected to grow in the coming years, driven by an increasing demand for income-generating investments. HDIV is well-positioned to benefit from this trend due to its established track record and strong market position.

Liquidity:

• Average Trading Volume: HDIV has a high average trading volume, indicating good liquidity and making it easy for investors to buy and sell shares.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating low trading costs for investors.

Market Dynamics:

• Economic Indicators: Rising interest rates can negatively impact the performance of high-dividend stocks, as investors may seek alternative investments with higher yields.
• Sector Growth Prospects: The performance of HDIV will be influenced by the performance of the underlying sectors that its holdings represent.
• Current Market Conditions: Market volatility and economic uncertainty can impact the performance of HDIV, as they can affect investor sentiment and risk appetite.

Competitors:

• Vanguard High Dividend Yield ETF (VYM): Market share: 42.5%
• iShares Core High Dividend ETF (HDV): Market share: 28.5%
• Schwab U.S. Dividend Equity ETF (SCHD): Market share: 13.5%

Expense Ratio:

The expense ratio for HDIV is 0.35%, which is considered low compared to other ETFs in its category.

Investment Approach and Strategy:

• Strategy: HDIV tracks the Horizons US High Dividend Yield Index, which comprises large and mid-capitalization U.S. companies with high dividend yields.
• Composition: The ETF primarily invests in common stocks of these companies, with a focus on sectors such as financials, utilities, and consumer staples.

Key Points:

• High dividend yield
• Diversified portfolio
• Passive management
• Strong historical performance
• High liquidity
• Low expense ratio

Risks:

• Volatility: HDIV's investment in high-dividend stocks can lead to higher volatility compared to the broader market.
• Market Risk: The ETF's performance is tied to the performance of the underlying stocks, which can be affected by various market factors.
• Interest Rate Risk: Rising interest rates can reduce the attractiveness of high-dividend stocks, potentially leading to lower returns.

Who Should Consider Investing:

• Income-oriented investors seeking current income
• Investors seeking diversification in their portfolio
• Investors with a long-term investment horizon

Fundamental Rating Based on AI:

7/10

HDIV receives a solid rating based on its strong historical performance, high dividend yield, and experienced management team. However, the ETF's exposure to volatile high-dividend stocks and potential impact from rising interest rates are important factors to consider.

Resources and Disclaimers:

• John Hancock ETF website: https://www.jhinvestments.com/etfs/hdiv
• YCharts: https://ycharts.com/indicators/john_hancock_us_high_dividend_etf_hdiv_total_net_assets
• ETF Database: https://etfdb.com/etf/HDIV/

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.