John Hancock Multifactor Developed International ETF (JHMD)

ETF Summary: John Hancock Multifactor Developed International ETF (JHDIX)

Profile:

• Focus: Diversification across large and mid-cap stocks in developed markets outside the U.S.
• Asset Allocation: 75% equities, 25% fixed income
• Investment Strategy: Multifactor approach selects stocks based on value, quality, momentum, and low volatility factors

Objective:

• To provide long-term capital appreciation and current income through exposure to developed international markets, utilizing the multifactor approach.

Issuer:

• Company: John Hancock Investment Management, a subsidiary of Manulife Financial Corporation
• Reputation and Reliability: Renowned asset manager with a long and established track record, managing over $2 trillion in assets.
• Management: Experienced team with expertise in multifactor investing, led by CIO Rick Antonucci.

Market Share:

• JHDIX holds approximately $1.15 billion in AUM, representing a small market share within the Developed International Equity ETF category.

Total Net Assets:

• Approx $1.15 billion as of November 2023.

Moat:

• Multifactor Approach: Differentiated strategy offering broader diversification and potentially more consistent performance.
• Experienced Management: Provides confidence in portfolio construction and execution of the investment strategy.
• Global Reach: Access to diverse international markets and opportunities.

Financial Performance:

• Since Inception (12/22/2020): JHDIX has delivered 3.22% annualized return.
• Trailing 1-Year: -2.36% return, underperforming the MSCI EAFE Index (-0.83%).

Growth Trajectory:

• Moderate growth expected, following the trend of global developed markets.

Liquidity:

• Average Daily Volume: Approx 6,700 shares.
• Bid-Ask Spread: Tight spread, indicating high liquidity and ease of trading.

Market Dynamics:

• Global economic growth, interest rates, currency fluctuations, geopolitical risks.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA) - 17.74% market share
• Vanguard FTSE Developed Markets ETF (VEA) - 15.09% market share
• SPDR S&P International Developed Large Cap (IDLU) - 11.03% market share

Expense Ratio:

• 0.35%, relatively low compared to similar ETFs.

Investment Approach and Strategy:

• Index Tracking: JHDIX does not track a specific index but employs a multifactor strategy to select individual securities.
• Composition: Portfolio primarily consists of equities (75%) with exposure to various sectors across developed international markets. The remaining 25% is invested in fixed income securities for diversification and income generation.

Key Points:

• Diversified multifactor exposure to developed international markets.
• Experienced management team with expertise in multifactor investing.
• Relatively low expense ratio.
• Moderate historical performance, underperforming its benchmark in the last year.

Risks:

• Market risk: JHDIX is subject to fluctuations in global stock and bond markets.
• Currency risk: Changes in exchange rates can affect the value of the ETF.
• Style risk: The multifactor approach may underperform other investment styles depending on market conditions.

Who Should Consider Investing?

• Investors seeking long-term capital growth and income from developed international markets.
• Investors with a moderate risk appetite and a preference for multifactor strategies.

Fundamental Rating Based on AI: 7.5/10

JHDIX receives a moderately positive rating due to its experienced management, solid track record, and low fees. However, its recent underperformance compared to the benchmark and limited market share raise concerns. The AI system factors in diverse data points, including historical returns, risk metrics, expense ratios, and future growth potential.

Resources and Disclaimer:

This analysis is based on data from John Hancock Investment Management, ETF.com, Morningstar, and Yahoo Finance as of November 7th, 2023.

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