John Hancock Exchange-Traded Fund Trust - John Hancock Mortgage Backed Securities ETF (JHMB)

Overview

The John Hancock Mortgage Backed Securities ETF (MORT) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Bloomberg U.S. Mortgage Backed Securities Index. It primarily invests in a diversified portfolio of U.S. mortgage-backed securities.

Reputation and Reliability

John Hancock is a well-established asset management firm with a long history. They are generally considered a reliable issuer of ETFs.

Management Expertise

John Hancock has experienced portfolio managers specializing in fixed-income investments, including mortgage-backed securities.

Goal

To track the performance, before fees and expenses, of the Bloomberg U.S. Mortgage Backed Securities Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to replicate the Bloomberg U.S. Mortgage Backed Securities Index.

Composition The ETF invests primarily in mortgage-backed securities, which are bundles of home loans secured by real estate.

Market Share: MORT has a relatively small market share compared to larger, more established MBS ETFs.

Total Net Assets (AUM): 184881055.78

Key Competitors

• iShares MBS ETF (MBB)
• Vanguard Mortgage-Backed Securities ETF (VMBS)
• SPDR Portfolio Mortgage Backed Securities ETF (SPMB)

Competitive Landscape

The mortgage-backed securities ETF market is dominated by a few large players. MORT competes with larger ETFs that have lower expense ratios and greater liquidity. MORT may appeal to investors seeking a specific manager or a slight variation in index tracking.

Historical Performance: Historical performance can be found on financial websites, and it should be compared to MBB, VMBS, and the benchmark index.

Benchmark Comparison: The ETF aims to closely track the Bloomberg U.S. Mortgage Backed Securities Index, so the performance should be very similar, accounting for fees.

Expense Ratio: 0.32

Average Trading Volume

The average trading volume of MORT is moderate and can fluctuate based on market conditions.

Bid-Ask Spread

The bid-ask spread varies but is generally wider than larger, more liquid MBS ETFs like MBB and VMBS.

Market Environment Factors

Mortgage rates, housing market trends, and Federal Reserve policy significantly impact MORT. Changes in interest rates can affect the value of mortgage-backed securities.

Growth Trajectory

The ETF's growth trajectory is closely tied to the performance and investor demand for mortgage-backed securities.

Competitive Edge

MORT's competitive edge is limited due to the presence of larger, more liquid competitors. Its main differentiator may be its specific portfolio management approach within the confines of the index. However, this doesn't offer a significant advantage over the other larger Mortgage-Backed Securities ETFs in the market. Investors may prefer a larger, more liquid ETF with a lower expense ratio.

Volatility

MORT's volatility is generally moderate, reflecting the stability of the underlying mortgage-backed securities market.

Market Risk

The main risks include interest rate risk, credit risk (though minimized by focusing on agency-backed MBS), and prepayment risk.

Ideal Investor Profile

The ideal investor is one who seeks exposure to the U.S. mortgage-backed securities market, prefers a passive investment approach, and is comfortable with the risks associated with fixed-income securities.

Market Risk

MORT is suitable for long-term investors seeking diversification in their fixed-income portfolio.

John Hancock Mortgage Backed Securities ETF (MORT) provides exposure to the U.S. mortgage-backed securities market by tracking the Bloomberg U.S. Mortgage Backed Securities Index. The ETF employs a passive management strategy and its performance closely correlates with the index. However, it faces strong competition from larger ETFs with lower expense ratios and higher liquidity. Investors should consider the expense ratio and liquidity when choosing between MORT and its competitors. It is suitable for long-term investors looking for diversification in the fixed-income assets.

• MBB
• VMBS
• SPMB
• AGG
• BND

Data Sources:

• John Hancock official website
• Bloomberg
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market data is subject to change.