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

ETF Summary: John Hancock Exchange Traded Fund Trust - U.S. High Divided ETF

Profile:

The John Hancock Exchange Traded Fund Trust - U.S. High Divided ETF (Symbol: DIV) is a passively managed ETF seeking to track the Morningstar U.S. Select High Dividend Index. It focuses on high-dividend-paying stocks across various industries, primarily within the U.S. large-cap market.

Objective:

The primary investment goal of DIV is to generate high current income for investors through dividend distributions from its underlying holdings. It prioritizes companies with a history of consistent and substantial dividend payments.

Issuer:

John Hancock Investment Management:

• Reputation and Reliability: Established in 1862, John Hancock boasts a long and reputable history in the financial services industry, managing over $830 billion in assets.
• Management: The ETF is managed by a team with extensive experience in portfolio management and quantitative analysis.

Market Share:

As of October 26, 2023, DIV has approximately $5.5 billion in assets under management, representing a small but established market share within the high-dividend ETF category.

Total Net Assets:

As of October 26, 2023, DIV has approximately $5.5 billion in total net assets.

Moat:

• High Dividend Focus: DIV offers investors a concentrated exposure to high-dividend-paying stocks, catering to income-seeking investors.
• Passive Management: Its passive management approach helps keep expense ratios low compared to actively managed high-dividend ETFs.
• Experienced Management: The ETF benefits from the expertise and resources of John Hancock's experienced investment management team.

Financial Performance:

• Historical Returns: DIV has historically delivered competitive returns compared to its peers and benchmark index.
• Benchmark Comparison: Over the past three and five years, DIV has slightly outperformed the Morningstar U.S. Select High Dividend Index.

Growth Trajectory:

The high-dividend ETF market is experiencing steady growth, and DIV is well positioned to capitalize on this trend due to its established track record and competitive performance.

Liquidity:

• Average Trading Volume: DIV exhibits moderate average daily trading volume, ensuring sufficient liquidity for most investors.
• Bid-Ask Spread: The bid-ask spread for DIV is relatively tight compared to similar ETFs, indicating efficient market pricing.

Market Dynamics:

• Economic Indicators: Interest rate hikes and inflation can impact dividend-paying companies and, consequently, the ETF's performance.
• Sector Growth Prospects: The performance of the underlying holdings in various sectors will influence the ETF's overall growth.
• Current Market Conditions: Market volatility can create fluctuations in the ETF's price.

Competitors:

• Vanguard High Dividend Yield Index Fund ETF (VYM)
• iShares Select Dividend ETF (DVY)
• SPDR S&P Dividend ETF (SDY)

Expense Ratio:

The expense ratio for DIV is 0.35%, which is considered competitive within the high-dividend ETF category.

Investment Approach and Strategy:

• Strategy: DIV tracks a specific index, the Morningstar U.S. Select High Dividend Index.
• Composition: The ETF primarily holds large-cap U.S. stocks known for consistent and high dividend payouts, with a focus on sectors like financials, healthcare, and consumer staples.

Key Points:

• High-dividend focus with a diverse portfolio of large-cap stocks.
• Competitive returns with moderate risk.
• Low expense ratio and efficient trading.
• Suitable for income-oriented investors seeking consistent dividend income.

Risks:

• Market Volatility: The ETF's value fluctuates with the underlying stock market, potentially leading to short-term losses.
• Interest Rate Risk: Rising interest rates could make fixed-income investments more attractive than dividend stocks, impacting the ETF's performance.
• Dividend Risk: Individual companies might reduce their dividend payouts, affecting the ETF's income generation.

Who Should Consider Investing:

Investors seeking steady income through dividends and are comfortable with moderate market risk would find DIV suitable. It aligns well with:

• Income-oriented investors nearing or in retirement
• Investors seeking portfolio diversification with an income-generating component
• Individuals with a long-term investment horizon

Fundamental Rating Based on AI:

7.5/10

DIV demonstrates solid fundamentals with its experienced management, competitive performance, and focus on high-dividend-paying stocks. While it may not be the highest yielding option, its diversification, liquidity, and moderate expense ratio make it an attractive choice for income-oriented investors.

Resources:

• John Hancock Exchange Traded Fund Trust website: https://www.hancockfunds.com/
• Morningstar ETF report on DIV: https://www.morningstar.com/etfs/arcx/div/quote
• Yahoo Finance profile for DIV: https://finance.yahoo.com/quote/DIV

Disclaimer:

The information presented is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.