John Hancock Multifactor Developed International ETF (JHMD)

ETF Overview: John Hancock Multifactor Developed International ETF (JHD)

Profile:

JHD is an actively managed ETF that invests primarily in large- and mid-cap stocks of developed markets outside the U.S. Its investment strategy relies on a multifactor approach, seeking stocks with characteristics historically associated with positive returns, such as value, momentum, quality, and low volatility.

Objective:

The primary objective of JHD is to generate long-term capital appreciation by investing in a diversified portfolio of international equities while aiming to outperform the MSCI EAFE Index.

Issuer:

• Name: John Hancock Investment Management
• Reputation and Reliability: John Hancock is a well-established financial services company with a long history dating back to 1862. It is known for its strong reputation and financial stability.
• Management: The ETF is managed by an experienced team of portfolio managers with expertise in international investing and multifactor strategies.

Market Share:

JHD has a market share of approximately 0.3% in the Developed International Equity ETF category.

Total Net Assets:

As of November 7, 2023, JHD has total net assets of approximately $1.58 billion.

Moat:

JHD's competitive advantages include:

• Multifactor approach: This approach aims to capture a broader range of return drivers, potentially leading to enhanced risk-adjusted returns.
• Active management: The experienced portfolio management team actively selects stocks based on their assessment of individual securities and market conditions.
• Global diversification: The ETF provides exposure to a wide range of international markets, potentially reducing concentration risk.

Financial Performance:

Since its inception in 2017, JHD has delivered a cumulative total return of 52.41%, outperforming the MSCI EAFE Index by 8.68% over the same period. However, it's crucial to note that past performance is not indicative of future results.

Benchmark Comparison:

JHD has consistently outperformed the MSCI EAFE Index in most timeframes, demonstrating its active management's effectiveness.

Growth Trajectory:

The global developed markets are expected to experience moderate growth in the coming years, potentially benefiting JHD.

Liquidity:

• Average Trading Volume: JHD has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%, highlighting its cost-effective trading.

Market Dynamics:

• Economic growth in developed markets.
• Interest rate fluctuations.
• Geopolitical events.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA): 28.7% market share
• Vanguard FTSE Developed Markets ETF (VEA): 21.5% market share
• SPDR S&P International Developed Large Cap ETF (IDLV): 6.7% market share

Expense Ratio:

JHD's expense ratio is 0.35%, which is considered relatively low compared to other actively managed international equity ETFs.

Investment Approach and Strategy:

• Strategy: JHD actively manages its portfolio to identify stocks with favorable multifactor characteristics.
• Composition: The ETF holds approximately 300 stocks across various sectors, with a focus on value, momentum, quality, and low volatility.

Key Points:

• Actively managed multifactor ETF.
• Invests in developed international stocks.
• Outperformed the benchmark index in most periods.
• Moderate liquidity and low expense ratio.

Risks:

• Market risk: The value of JHD's investments may fluctuate due to market conditions.

• Currency risk: The ETF is exposed to currency risk as it invests in international markets.

• Who Should Consider Investing:

• Investors seeking active management and the potential for outperformance.

• Investors with a long-term investment horizon.

• Investors looking for international diversification.

Evaluation of ETF John Hancock Multifactor Developed International ETF’s fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI'

Fundamental Rating Based on AI: 8.5

JHD receives a strong rating based on AI analysis, considering its compelling characteristics, including:

• Strong track record of outperformance.
• Experienced management team.
• Diversified portfolio.
• Moderate expense ratio.
• Moderate liquidity.

This indicates that JHD has a solid foundation for potential long-term success.

Resources and Disclaimers:

This analysis is based on information from John Hancock Investment Management's website and other publicly available sources as of November 7, 2023.

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money.