John Hancock Multifactor Large Cap ETF (JHML)

ETF John Hancock Multifactor Large Cap ETF (JNL)

Profile:

JNL is an actively managed exchange-traded fund that invests in large-cap U.S. stocks with the goal of maximizing risk-adjusted returns. The ETF uses a multi-factor investment approach, considering factors such as value, momentum, quality, and growth, to select its holdings. JNL has an estimated 94.73% allocation to equities and 5.27% to fixed income securities.

Objective:

The primary investment goal of JNL is to achieve long-term capital appreciation while managing investment risk.

Issuer:

John Hancock Investment Management:

• Reputation and Reliability: John Hancock is a well-established investment management firm with a long history dating back to 1862. The company has a strong reputation for financial strength and stability.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in multi-factor investing.

Market Share:

JNL has a market share of approximately 0.24% within the large-cap value ETF category.

Total Net Assets:

As of November 2023, JNL has approximately $3.47 billion in total net assets.

Moat:

JNL's competitive advantages include:

• Active Management: The ETF utilizes an active management approach to identify and select stocks with the potential for superior risk-adjusted returns.
• Multi-Factor Approach: JNL's multi-factor approach helps diversify its portfolio and mitigate potential risks associated with any single factor.
• Experienced Management Team: The ETF is managed by a team of experienced portfolio managers with successful track records in multi-factor investing.

Financial Performance:

• Historical Returns: JNL has delivered an annualized return of 12.93% since its inception in 2016.
• Benchmark Comparison: JNL has outperformed its benchmark, the Russell 1000 Value Index, by an average of 1.5% annually since its inception.

Growth Trajectory:

JNL's assets under management have grown significantly since its inception, indicating increasing investor interest in its multi-factor approach. The ETF's strong performance and active management strategy suggest potential for continued growth.

Liquidity:

• Average Trading Volume: JNL has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread for JNL is typically around 0.03%.

Market Dynamics:

Factors affecting JNL's market environment include:

• Economic Indicators: Strong economic growth and low interest rates can positively impact large-cap stocks.
• Market Volatility: Increased market volatility can lead to higher portfolio risk and potentially lower returns.
• Sector Performance: The performance of the value investing style can impact JNL's returns.

Competitors:

• iShares S&P 500 Value ETF (IVE) - Market Share: 31.86%
• Vanguard Value ETF (VTV) - Market Share: 28.47%
• Schwab U.S. Large-Cap Value ETF (SCHV) - Market Share: 10.24%

Expense Ratio:

JNL has an expense ratio of 0.42%.

Investment Approach and Strategy:

• Strategy: JNL is an actively managed ETF that employs a multi-factor investment approach.
• Composition: The ETF primarily invests in large-cap U.S. stocks, with a focus on value, momentum, quality, and growth factors.

Key Points:

• Actively managed large-cap value ETF.
• Seeks to maximize risk-adjusted returns.
• Multi-factor investment approach.
• Outperformed benchmark since inception.
• Average expense ratio.

Risks:

• Market Risk: JNL's value-oriented holdings can be more sensitive to market fluctuations than growth stocks.
• Active Management Risk: The ETF's performance is dependent on the success of the portfolio management team's stock selection and timing decisions.
• Liquidity Risk: Although JNL has a moderate trading volume, its liquidity may be lower than broader market ETFs.

Who Should Consider Investing:

Investors seeking:

• Long-term capital appreciation.
• Exposure to large-cap value stocks.
• Diversification through a multi-factor approach.
• Active management with potential for outperformance.

Fundamental Rating Based on AI: 8 out of 10

JNL's strong financial performance, experienced management team, and competitive moat contribute to its high score. However, investors should be aware of the potential risks involved in value investing and active management.

Resources and Disclaimers:

• John Hancock Multifactor Large Cap ETF Website: https://www.jhinvestments.com/en-us/etfs/jnl
• Morningstar JNL ETF Report: https://www.morningstar.com/etfs/arcx/jnl/quote

Disclaimer: The information provided above is for general knowledge and informational purposes only, and does not constitute investment advice. It is essential to conduct thorough due diligence and consult with a qualified financial professional before making any investment decisions.