John Hancock Multifactor Large Cap ETF (JHML)JHML

John Hancock Multifactor Large Cap ETF (JHML) Overview:

Profile:

JHML is an actively managed ETF that seeks to outperform the Russell 1000 Index by investing in large-cap U.S. stocks using a multi-factor approach. The fund focuses on factors like value, momentum, quality, and low volatility to select stocks. JHML has approximately 130 holdings across various sectors, with a tilt towards Technology, Financials, and Healthcare.

Objective:

The primary investment goal of JHML is to provide long-term capital appreciation by exceeding the Russell 1000 Index's performance.

Issuer:

John Hancock Investment Management (JHIM) is the issuer of JHML. JHIM is a subsidiary of Manulife Financial Corporation, a leading global financial services company with over 150 years of experience.

Reputation and Reliability:

JHIM has a solid reputation in the industry, with a proven track record of managing various investment products.

Management:

The portfolio management team at JHIM has extensive experience in managing quantitative and multi-factor investment strategies.

Market Share:

JHML currently holds a small market share within the Large-Cap Blend ETF category, representing less than 1%.

Total Net Assets:

As of November 8th, 2023, JHML has approximately $547 million in total net assets.

Moat:

JHML's competitive advantages include:

• Active management: The ETF employs a quantitative multi-factor model to select stocks, potentially outperforming passively managed index funds.
• Experienced management team: The portfolio managers have a proven track record in implementing quantitative strategies.
• Lower cost than actively managed mutual funds: As an ETF, JHML offers a lower expense ratio compared to actively managed mutual funds with similar strategies.

Financial Performance:

JHML has outperformed the Russell 1000 Index since its inception in 2019. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

JHML has outperformed the Russell 1000 Index in both up and down markets, demonstrating the effectiveness of its multi-factor approach.

Growth Trajectory:

The Large Cap Blend ETF market is expected to experience moderate growth in the coming years. JHML's unique approach and potential for outperformance could contribute to its future growth.

Liquidity:

JHML has moderate trading volume, with an average daily volume of approximately 20,000 shares. The bid-ask spread is also relatively tight, making the ETF easily tradeable.

Market Dynamics:

Factors affecting JHML's market performance include overall market conditions, interest rate changes, and economic growth prospects.

Competitors:

Key competitors within the Large-Cap Blend ETF category include IVV (iShares CORE S&P 500), SPY (SPDR S&P 500 ETF Trust), and VOO (Vanguard S&P 500 ETF).

Expense Ratio:

JHML's expense ratio is 0.35%, which is lower than the average expense ratio for actively managed large-cap funds.

Investment Approach and Strategy:

JHML employs a quantitative multi-factor model that incorporates factors like value, momentum, quality, and low volatility to select stocks. The fund does not track any specific index and can invest in a broad range of large-cap US stocks across different sectors.

Key Points:

• Actively managed multi-factor ETF
• Aims to outperform the Russell 1000 Index
• Lower cost than actively managed mutual funds
• Solid track record since inception
• Moderate liquidity

Risks:

• Market volatility
• Sector concentration risk
• Potential for underperformance
• Active management risk

Who Should Consider Investing:

JHML is suitable for investors seeking long-term capital appreciation through an actively managed large-cap investment approach. Investors comfortable with moderate volatility and potential for underperformance can also consider this ETF.

Fundamental Rating Based on AI:

Based on analysis of various factors like financial health, market position, and future prospects, JHML receives an AI-based fundamental rating of 7 out of 10. The strong track record and competitive expense ratio are positive factors, while the relatively small market share and dependence on active management pose some challenges.

Resources and Disclaimers:

• John Hancock Multifactor Large Cap ETF website: https://www.jhinvestments.com/etfs/jhml/
• Morningstar: https://www.morningstar.com/etfs/arcx/jhml/overview

Disclaimer: This analysis is provided for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.