John Hancock Multifactor Mid Cap ETF (JHMM)JHMM

John Hancock Multifactor Mid Cap ETF (JHMM) Overview

Profile:

JHMM is an actively managed ETF that seeks to provide long-term capital appreciation by investing in a diversified portfolio of U.S. mid-cap stocks. The ETF uses a multi-factor approach, considering factors such as value, momentum, quality, and growth, to select its holdings.

Objective:

JHMM's primary objective is to outperform the S&P MidCap 400 Index over the long term.

Issuer:

John Hancock Investment Management is the issuer of JHMM. John Hancock is a well-established financial services company with a long history dating back to 1862. The company has a strong reputation for innovation and reliability, and its management team has extensive experience in the investment industry.

Market Share:

JHMM has a relatively small market share within the mid-cap ETF space. As of October 26, 2023, its total assets under management are approximately $650 million, representing about 0.2% of the mid-cap ETF market.

Moat:

JHMM's competitive advantages include:

• Multi-factor approach: Its focus on multiple factors may lead to better risk-adjusted returns compared to single-factor strategies.
• Experienced management team: John Hancock has a team of experienced portfolio managers with a proven track record.
• Active management: Active management allows the portfolio managers to adjust the portfolio holdings based on changing market conditions.

Financial Performance:

Since its inception in 2016, JHMM has outperformed the S&P MidCap 400 Index. Over the past 3 years, the ETF has delivered an annualized return of 12.5%, compared to 10.2% for the benchmark index.

Growth Trajectory:

The mid-cap segment of the U.S. stock market is expected to continue growing in the coming years. This bodes well for JHMM's future prospects.

Liquidity:

JHMM has an average daily trading volume of over 200,000 shares. This indicates that the ETF is relatively liquid and can be easily bought and sold. The bid-ask spread is typically around 0.1%, which is considered tight for an actively managed ETF.

Market Dynamics:

Factors that could affect JHMM's performance include:

• Economic growth: A strong economy typically leads to higher mid-cap stock prices.
• Interest rates: Rising interest rates can make it more expensive for companies to borrow money, which could hurt their profitability.
• Market volatility: Increased market volatility can lead to wider price swings for mid-cap stocks.

Competitors:

JHMM's main competitors in the mid-cap ETF space include:

• iShares Core S&P Mid-Cap ETF (IJH)
• Vanguard Mid-Cap ETF (VO)
• iShares Russell Midcap Growth ETF (IWP)

Expense Ratio:

JHMM's expense ratio is 0.45%. This is slightly higher than the average expense ratio for mid-cap ETFs, which is around 0.40%.

Investment Approach and Strategy:

JHMM uses a multi-factor approach to select its holdings. The portfolio managers consider factors such as value, momentum, quality, and growth when making investment decisions. The ETF holds a diversified portfolio of around 250 mid-cap stocks across various sectors.

Key Points:

• Actively managed mid-cap ETF seeking long-term capital appreciation.
• Utilizes a multi-factor approach for stock selection.
• Outperformed the S&P MidCap 400 Index since inception.
• Relatively small market share but experiencing growth.
• Experienced management team and solid reputation of issuer.

Risks:

• Market risk: The ETF's value is dependent on the performance of the underlying mid-cap stocks.
• Management risk: The ETF's performance is dependent on the skill of the portfolio managers.
• Liquidity risk: The ETF may not always be easy to buy and sell.

Who Should Consider Investing:

JHMM is suitable for investors seeking long-term capital appreciation and are comfortable with the risks associated with mid-cap stocks. It is also appropriate for investors who believe in the multi-factor approach to investing.

Fundamental Rating Based on AI:

Rating: 7.5/10

JHMM receives a good rating based on the AI analysis. The ETF benefits from a strong track record, experienced management, and a well-defined investment strategy. However, its relatively small market share and higher expense ratio compared to some competitors are slight drawbacks.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• John Hancock Investment Management website: https://www.johnhancock.com/investment-management/product-portfolio/etfs/etf-details.aspx?etfCode=jhmm
• Morningstar: https://www.morningstar.com/etfs/arcx/jhmm/quote
• Yahoo Finance: https://finance.yahoo.com/quote/JHMM/

Please note that this information is for educational purposes only and should not be considered investment advice. Investing involves risk, and you should always consult with a qualified financial advisor before making any investment decisions.