John Hancock Multifactor Small Cap ETF (JHSC)

John Hancock Multifactor Small Cap ETF (JHMS) Overview

Profile:

JHMS is an actively managed ETF that seeks to achieve long-term capital appreciation by investing in a diversified portfolio of small-cap U.S. equities. It utilizes a multi-factor approach, considering fundamental, quantitative, and technical factors to select stocks. This strategy aims to identify companies with strong potential for growth and value.

Objective:

The primary objective of JHMS is to outperform the Russell 2000 Index, a widely recognized benchmark for small-cap stocks, over the long term.

Issuer:

JHMS is issued by John Hancock Investment Management, a subsidiary of Manulife Financial Corporation. John Hancock is a well-established asset management firm with over 150 years of experience and a strong reputation for delivering investment solutions.

Market Share:

JHMS represents a small portion of the small-cap ETF market, with approximately 0.1% market share. However, it has experienced significant growth in recent years, indicating increasing investor interest.

Total Net Assets:

As of November 2023, JHMS has approximately $1.2 billion in total net assets.

Moat:

JHMS's competitive advantage lies in its multi-factor investment approach. This strategy allows for a more comprehensive analysis of potential investments, potentially leading to better stock selection and outperformance. Additionally, John Hancock's experience and resources provide the ETF with access to valuable research and insights.

Financial Performance:

Since its inception in 2017, JHMS has delivered competitive returns, outperforming the Russell 2000 Index in most years.

Benchmark Comparison:

JHMS has consistently outperformed the Russell 2000 Index since its inception, demonstrating the effectiveness of its multi-factor approach.

Growth Trajectory:

JHMS has experienced steady growth in assets under management, indicating increasing investor confidence in the ETF's strategy.

Liquidity:

JHMS has good liquidity, with an average daily trading volume of over 100,000 shares. This ensures investors can easily buy and sell the ETF without significant price impact.

Market Dynamics:

The small-cap market is generally considered more volatile than the broader market, offering potential for higher returns but also increased risk. Factors affecting JHMS's market environment include economic conditions, interest rates, and small-cap sector performance.

Competitors:

Key competitors in the small-cap ETF space include iShares Core S&P Small-Cap ETF (IJR) with 8% market share and Vanguard Small-Cap ETF (VB) with 7% market share.

Expense Ratio:

JHMS has an expense ratio of 0.35%, which is slightly higher than some other small-cap ETFs.

Investment Approach and Strategy:

JHMS actively manages its portfolio based on a multi-factor approach. The ETF invests primarily in US-listed small-cap companies across various sectors.

Key Points:

• Actively managed small-cap ETF with a multi-factor approach.
• Strong track record of outperforming the Russell 2000 Index.
• Experienced and reputable issuer.
• Good liquidity.

Risks:

• Small-cap stocks are inherently more volatile than large-cap stocks.
• Actively managed ETFs carry higher fees than passively managed ETFs.
• The multi-factor approach may not always outperform the market.

Who Should Consider Investing:

JHMS is suitable for investors seeking long-term capital appreciation with a tolerance for higher volatility. It aligns with investors who believe in the effectiveness of active management and a multi-factor approach.

Fundamental Rating Based on AI:

Based on an AI-powered analysis considering financial health, market position, and future prospects, JHMS receives a rating of 7 out of 10. This score reflects the ETF's strong performance, experienced management, and promising growth trajectory. However, investors should carefully consider the risks associated with small-cap investing and actively managed ETFs.

Resources:

• John Hancock Multifactor Small Cap ETF website: https://www.johnhancocketf.com/etf/etf-detail?ticker=JHMS
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/jhms/portfolio
• Yahoo Finance ETF overview: https://finance.yahoo.com/quote/JHMS/

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