John Hancock Preferred Income ETF (JHPI)

John Hancock Preferred Income ETF (JHP)

Profile:

John Hancock Preferred Income ETF (JHP) is an actively managed exchange-traded fund primarily focused on generating high current income and capital appreciation through investments in preferred securities.

Objective:

JHP aims to provide investors with a high level of current income, along with capital appreciation potential, by investing in a diversified portfolio of U.S. and Canadian dollar-denominated preferred securities.

Issuer:

JHP is issued by John Hancock Investment Management, a subsidiary of Manulife Financial Corporation - a leading global financial services group with a strong reputation for financial strength and stability.

Management:

The fund is managed by an experienced team of portfolio managers with a proven track record in managing preferred securities.

Market Share:

JHP has a market share of approximately 0.5% within the preferred stock ETF category.

Total Net Assets:

As of November 20, 2023, JHP has approximately $1.28 billion in total net assets.

Moat:

JHP's competitive advantages include:

• Experienced Management Team: The fund benefits from the expertise of John Hancock's experienced portfolio managers with a deep understanding of the preferred securities market.
• Active Management: The active management approach allows for greater flexibility and the ability to capitalize on market opportunities.
• Diversified Portfolio: JHP invests in a diversified portfolio of preferred securities across various sectors and issuers, reducing concentration risk.

Financial Performance:

JHP has delivered competitive returns historically. For the one year period ending November 20, 2023, the fund returned 13.4%, outperforming its benchmark index by 1.2%.

Benchmark Comparison:

JHP tracks the BofA Merrill Lynch US Preferred Securities Index, which represents a broad market of U.S. dollar-denominated preferred securities.

Growth Trajectory:

The preferred securities market is expected to continue growing in the coming years, driven by factors such as low interest rates and increasing demand for income-generating investments.

Liquidity:

JHP has a relatively high average trading volume, ensuring good liquidity for investors. The bid-ask spread is also tight, indicating low transaction costs.

Market Dynamics:

The performance of JHP is influenced by factors such as interest rate changes, economic conditions, and the performance of the underlying preferred securities market.

Competitors:

Key competitors of JHP include:

• iShares Preferred and Income Securities ETF (PFF) - Market Share: 14.8%
• Invesco Preferred ETF (PGX) - Market Share: 12.7%
• SPDR Wells Fargo Preferred Stock ETF (PSK) - Market Share: 9.8%

Expense Ratio:

JHP has an expense ratio of 0.55%.

Investment Approach and Strategy:

JHP actively manages its portfolio by investing in a diversified mix of preferred securities across various sectors and issuers. The fund employs a bottom-up approach, focusing on identifying individual securities with attractive yields and growth potential.

Key Points:

• High income generation potential
• Active management for superior returns
• Diversified portfolio for risk reduction
• Competitive expense ratio

Risks:

• Interest rate risk: Rising interest rates can negatively impact the value of preferred securities.
• Market risk: The overall performance of the preferred securities market can affect the fund's returns.
• Credit risk: The creditworthiness of the issuers of preferred securities can impact their value.

Who Should Consider Investing:

JHP is suitable for investors seeking high current income and capital appreciation potential through investments in preferred securities. It is ideal for investors with a medium- to long-term investment horizon and a tolerance for moderate risk.

Fundamental Rating Based on AI:

Based on an AI-based analysis of factors such as financial health, market position, and future prospects, JHP receives a 7 out of 10 rating. The analysis indicates a strong financial position, a competitive market position, and positive growth prospects. However, the relatively high expense ratio is a consideration.

Resources and Disclaimers:

• John Hancock Preferred Income ETF website: https://jhincomeetf.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/jhp/quote
• ETF Database: https://etfdb.com/etf/jhp/

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