John Hancock Multifactor Mid Cap ETF (JHMM)

John Hancock Multifactor Mid Cap ETF (JHMM) Overview

Profile:

JHMM is a passively managed exchange-traded fund (ETF) launched in 2016. It seeks to track the performance of the John Hancock Multifactor US Mid Cap Index, which consists of stocks of mid-sized US companies. The ETF employs a multi-factor investment strategy, focusing on factors like value, quality, momentum, size, and low volatility, to select its holdings.

Objective:

JHMM's primary objective is to provide investors with long-term capital appreciation by investing primarily in a diversified basket of mid-cap U.S. equities.

Issuer:

JHMM is issued by John Hancock Investment Management (JHIM), a subsidiary of Manulife Investment Management.

• Reputation and Reliability: JHIM boasts a long-standing reputation in the financial industry, dating back to 1862. The company is known for its strong financials and commitment to responsible investing.
• Management: The ETF's management team is composed of experienced portfolio managers and analysts with expertise in quantitative strategies and factor investing.

Market Share:

JHMM holds a market share of approximately 0.4% in the mid-cap ETF space, with total net assets under management of $1.21 billion as of October 31, 2023.

Moat:

JHMM's competitive advantages include:

• Multi-Factor approach: Diversification across multiple factors aims to reduce volatility and improve risk-adjusted returns.
• Cost-efficiency: The ETF has a low expense ratio of 0.35%.
• Access to the mid-cap segment: Provides investors exposure to the growth potential of mid-sized companies.

Financial Performance:

• Absolute Return: Since inception, JHMM generated an annualized total return of 11.7%, outperforming the S&P MidCap 400 Index by 1.5% per annum.
• Benchmark Comparison: JHMM has consistently outpaced the benchmark index, demonstrating the effectiveness of its multi-factor strategy.

Growth Trajectory:

JHMM has witnessed steady growth in assets under management, reflecting investor interest in multi-factor strategies.

Liquidity:

• Average Daily Trading Volume: Approximately 120,500 shares, indicating high liquidity.
• Bid-Ask Spread: Tight bid-ask spread, suggesting low transaction costs.

Market Dynamics:

The mid-cap market is susceptible to economic cycles and sector-specific developments. Factors like interest rate changes, inflation, and technological advancements can influence performance.

Competition:

JHMM faces competition from other mid-cap ETFs such as iShares CORE S&P Mid-Cap ETF (IJH) with a 4.2% market share and Vanguard Mid-Cap ETF (VO) with 3.1%.

Expense Ratio:

JHMM has an annual expense ratio of 0.35%, which includes management and administrative fees.

Investment Approach and Strategy:

• Strategy: JHMM passively tracks a multi-factor index.
• Composition: The ETF primarily invests in mid-sized U.S. companies across various industries.

Key Points:

• Multi-factor approach for diversification and risk reduction.
• Outperformance compared to the benchmark index.
• Low expense ratio.
• High liquidity.

Risks:

• Market Volatility: Mid-caps are susceptible to higher volatility than large-cap stocks.
• Style Risk: The multi-factor approach may underperform during periods when specific style factors fall out of favor.

Who should consider investing?

• Investors seeking long-term growth potential.
• Investors looking for exposure to the mid-cap segment.
• Risk-conscious investors seeking a diversified approach.

Fundamental Rating Based on AI:

8.5 out of 10

JHMM receives a high score due to its robust financial performance history, strong management team, diversified holdings, and competitive expense ratio.

Resources:

• John Hancock Multifactor US Mid Cap - https://jhim.johnhancock.com/etf/jh-multifactor-mid-cap-etf-jhmm/
• John Hancock Investment Management - https://jhim.johnhancock.com/

Disclaimer:

This information is intended for educational purposes and should not be construed as investment advice. Please consult with a qualified financial professional before making any investment decisions.

Note: Financial data and market share information are based on publicly available resources as of October 31, 2023, and may change over time