John Hancock Multifactor Small Cap ETF (JHSC)JHSC

John Hancock Multifactor Small-Cap ETF (JHSC) Summary:

Profile:

Focus: JHSC is a passively managed exchange-traded funds investing in U. S. small-capitalization stocks using a proprietary multifactor approach. It seeks to provide long- term capital growth with income.

Target Sector: Small-capitalization U.S. equity market

Investment Strategy: Multifactor stock selection considering factors like value, quality, momentum, growth, and low volatility.

Objective:

The primary investment goal is to outperform the Russell 2000 Index by leveraging the multifactor strategy.

Issuer:

John Hancock Investment Management: Established in Boston, MA, with a long history in asset management and a strong reputation for ethical and sustainable investing practices.

Management: Experienced team with expertise in quantitative and multifactor investing, led by John Hancock's experienced portfolio management team.

Market Share:

JHSC holds a small market share within the Small-Cap ETF category, competing with established players.

Total Net Assets:**

$228 million (as of October 26, 2023).

Moat:

• Unique Multifactor Strategy: JHSC utilizes a distinct multifactor model to select stocks, potentially achieving outsized returns.
• Experienced Management: The management team possesses expertise in multifactor investing, indicating strong portfolio selection capabilities.

Financial Performance:

JHSC has outperformed its benchmark, the Russell 2000 Index, since its inception in 2015.

Recent performance:

• 1 year: 11.5%
• 3 years: 14.2%
• 5 years: 12.8%

Growth Trajectory:

• The small-capitalization market is expected to grow in the long term.
• The ETF's multifactor strategy has shown potential for outperformance.
• JHSC's assets under management have been increasing steadily.

Liquidity:

JHSC has a moderate average daily trading volume, indicating reasonable liquidity for investors. Average Daily Trading Volume: 35,026 shares. Bid-ask spread: $0.04

Market Dynamics:

• Economic indicators: Strong economic growth can positively impact small-capitalization stocks.
• Sector growth: The small-cap sector is expected to grow steadily along with the broader economy.
• Current market conditions: Rising interest rate environment may pose challenges for small-cap stocks.

Competitors:

Top competitors in the small-capitalization ETF market are iShares Russell 2000 Value ETF (IWM), Vanguard Small-cap Value ETF(VBR), and SPDR Russell 2000 ETF (XRB).

Expense Ratio:

0.35%, which is competitive within this category.

Investment Approach and Strategies:

• Strategy: Passively tracks the John Hancock Small Cap Multifactor Index, using the multifactor model.
• ** Composition:** Primarily invests in small-capitalization stocks across various industries.

Key Points:

• Multifactor approach for potential outperformance.
• Experienced management with a strong track records.
• Moderate liquidity with competitive expense Ratio.

Risks:

• Small-capitalization stocks are inherently more volatile than large-capitalization stocks.
• The multifactor approach may not outperform consistently.
• The ETF is relatively new, with limited performance history.

Who Should consider Investing:

• Investors seeking long-term capital appreciation with exposure to the small-capitalization equity market
• Investors who believe in the effectiveness of the multifactor strategy
• Investors with moderate risk tolerance

Evaluation of ETF JHSC's fundamentals using an AI based rating system on a scale of 1 to 9, titled 'Fundament Management Rating based on AI'

Fundamental Rating Based on AI: 8.5

Justification: JHSC exhibits strong overall fundamentals. Its distinctive multi-factor approach, experienced management team, and competitive expense ratios are noteworthy strengths. The ETF has also demonstrated the potential for outperforming its benchmark. However, its relatively young age and small market size necessitate further observation before awarding a higher rating.

Resources and Disclamer:

• Data source: https://investor.jhinvestments. com/etf/jhs
• Disclaimer: This summary is for informational purposes and should not serve as investment advice.. Always consult a professional financial advisor for personalized recommendations.