John Hancock Multifactor Emerging Markets ETF (JHEM)

Overview

The John Hancock Multifactor Emerging Markets ETF (JHEM) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the John Hancock Dimensional Emerging Markets Index. It employs a multifactor approach, selecting and weighting securities based on relative price, profitability, and market capitalization.

Reputation and Reliability

John Hancock is a well-established financial services provider with a long history in the asset management industry. They are generally considered reputable and reliable.

Management Expertise

John Hancock Investment Management has a team of experienced portfolio managers and analysts focusing on quantitative and factor-based investing.

Goal

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

Investment Approach and Strategy

Strategy: The ETF tracks the John Hancock Dimensional Emerging Markets Index, which uses a multifactor approach based on relative price, profitability, and size.

Composition The ETF primarily holds stocks of companies located in emerging market countries.

Market Share: Data unavailable to determine market share precisely.

Total Net Assets (AUM): 61000000

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets ETF space is highly competitive, dominated by large index providers like Vanguard and iShares. JHEM differentiates itself through its multifactor approach, which may offer potential for outperformance but also introduces complexity. Competitors offer lower expense ratios and higher liquidity.

Historical Performance: Historical performance data is available on the John Hancock Investment Management website and other financial data providers.

Benchmark Comparison: Investors should compare JHEM's performance against the John Hancock Dimensional Emerging Markets Index to assess tracking effectiveness.

Expense Ratio: 0.39

Average Trading Volume

The average trading volume for JHEM indicates moderate liquidity.

Bid-Ask Spread

The bid-ask spread for JHEM is usually small, reflecting its liquidity.

Market Environment Factors

Emerging market growth rates, currency fluctuations, commodity prices, and global trade policies significantly impact JHEM's performance.

Growth Trajectory

JHEM's growth depends on the performance of emerging markets and investor demand for factor-based strategies. Changes to the underlying index could also influence its future.

Competitive Edge

JHEM's multifactor approach, based on relative price, profitability, and size, differentiates it from purely market-cap-weighted ETFs. This strategy aims to capture specific factor premiums in emerging markets. The fund's index methodology, developed by Dimensional Fund Advisors, is research-driven and may provide a performance edge. However, these factors may not always outperform the broader market, and the higher expense ratio can be a disadvantage.

Volatility

Emerging markets are generally more volatile than developed markets; therefore, JHEM is expected to exhibit higher volatility.

Market Risk

JHEM is subject to risks associated with investing in emerging markets, including political instability, currency fluctuations, and regulatory changes.

Ideal Investor Profile

Investors seeking targeted exposure to emerging markets with a factor-based investment strategy, and a tolerance for higher volatility, are an ideal investor profile.

Market Risk

JHEM is suitable for long-term investors seeking potentially enhanced returns in emerging markets through a factor-based approach, but also require a long-term investment horizon.

John Hancock Multifactor Emerging Markets ETF (JHEM) offers exposure to emerging markets through a multifactor approach, targeting companies with attractive relative price, profitability, and size characteristics. The ETF's performance is tied to the John Hancock Dimensional Emerging Markets Index, with management seeking to mimic its results. JHEM is subject to the risks inherent in emerging market investing, including higher volatility. While the multifactor strategy has the potential to outperform, it also introduces complexity, and investors should consider the ETF's expense ratio and liquidity compared to competitors.

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. Market share data may not be precise due to reporting inconsistencies.