John Hancock Multifactor Mid Cap ETF (JHMM)

John Hancock Multifactor Mid Cap ETF (JHMM) Summary

Profile:

JHMM is an actively managed exchange-traded fund (ETF) that aims to deliver broad exposure to the US mid-cap equity market through a multi-factor investment approach. The ETF focuses on companies with market capitalizations between $2 billion and $10 billion and employs a quantitative model to select stocks based on factors such as value, momentum, quality, and growth. JHMM has roughly 275 holdings across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Objective:

The primary objective of JHMM is to provide investors with long-term capital appreciation by investing in a diversified portfolio of mid-cap stocks selected using a multi-factor approach.

Issuer:

JHMM is issued by John Hancock Investment Management, a subsidiary of Manulife Investment Management, a global asset manager with over $1.3 trillion in assets under management. John Hancock has a long history and a strong reputation in the financial services industry, dating back to 1862.

Market Share:

JHMM has a market share of approximately 0.05% within the mid-cap core ETF category.

Total Net Assets:

As of October 26, 2023, JHMM has $1.43 billion in total net assets.

Moat:

A key competitive advantage of JHMM is its multi-factor investment approach. This approach aims to diversify risk and potentially generate higher returns compared to traditional market-cap weighted index funds. Additionally, JHMM benefits from the resources and experience of John Hancock, a recognized leader in the asset management industry.

Financial Performance:

Since its inception in 2018, JHMM has delivered a cumulative return of 17.32%. In the past year, the ETF has outperformed its benchmark, the S&P MidCap 400 Index, by 2.14%. However, it's important to remember that past performance is not a guarantee of future results.

Growth Trajectory:

The mid-cap segment of the US stock market has historically exhibited strong growth potential. This trend is expected to continue, as mid-cap companies often have more room for expansion compared to larger companies.

Liquidity:

JHMM has an average daily trading volume of approximately 20,000 shares, indicating moderate liquidity. The bid-ask spread is typically less than 0.05%, suggesting relatively low transaction costs.

Market Dynamics:

Several factors influence JHMM's market environment:

• Economic Indicators: A strong economy can positively impact mid-cap companies' earnings and stock prices.
• Sector Growth Prospects: Growth in sectors like technology, healthcare, and consumer discretionary can benefit JHMM.
• Interest Rate Environment: Rising interest rates can negatively impact the valuations of growth-oriented companies, which are a significant portion of JHMM's portfolio.

Competitors:

Key competitors in the mid-cap core ETF space include:

• iShares CORE S&P Mid-Cap ETF (IJH) - Market share: 17.24%
• Vanguard Mid-Cap ETF (VO) - Market share: 13.89%
• SPDR S&P MidCap 400 ETF (MDY) - Market share: 10.77%

Expense Ratio:

JHMM has an expense ratio of 0.35%, which is below the average for mid-cap core ETFs.

Investment Approach and Strategy:

JHMM utilizes a quantitative multi-factor approach to select stocks. The ETF does not track a specific index but instead focuses on individual stock selection based on metrics related to value, momentum, quality, and growth.

Key Points:

• Actively managed mid-cap core ETF
• Multi-factor investment approach
• Diversified portfolio of approximately 275 holdings
• Moderate liquidity and low expense ratio

Risks:

• Market risk: JHMM's performance is directly tied to the performance of the mid-cap stock market, which can be volatile.
• Factor investing risk: The multi-factor approach may not always outperform the market, and its effectiveness can vary depending on market conditions.
• Management risk: The success of JHMM relies heavily on the expertise and experience of the portfolio management team.

Who Should Consider Investing:

JHMM is suitable for investors seeking long-term capital appreciation through exposure to mid-cap stocks and who are comfortable with the risks associated with actively managed ETFs and the potential for market volatility.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors, including financial performance, market position, and future prospects, JHMM receives a 7 out of 10 rating. This indicates that the ETF has a solid foundation and potential for future growth, but investors should consider their individual investment goals and risk tolerance before making an investment decision.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• John Hancock Multifactor Mid Cap ETF website: https://www.johnhancocketf.com/funds/mid-cap/jhmm/
• Morningstar: https://www.morningstar.com/etfs/arcx/jhmm/quote
• ETF.com: https://etf.com/JHMM

This information is provided for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.