John Hancock Multifactor Small Cap ETF (JHSC)

Overview

The John Hancock Multifactor Small Cap ETF (JHSC) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the John Hancock Dimensional Small Cap Index. It targets small-cap stocks using a multifactor approach, emphasizing relative price, profitability, and management quality.

Reputation and Reliability

John Hancock is a well-established asset manager with a long history in the financial services industry, known for providing a range of investment products.

Management Expertise

The management team has expertise in quantitative investment strategies and uses a disciplined, rules-based approach to portfolio construction.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the John Hancock Dimensional Small Cap Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the John Hancock Dimensional Small Cap Index, which uses a multifactor model to select and weight small-cap stocks.

Composition The ETF primarily holds small-cap stocks from the U.S. market, selected based on factors such as relative price, profitability, and management quality. It will also hold other security types that align with the index, such as cash and cash equivalents.

Market Share: JHSC has a smaller market share compared to other major small-cap ETFs.

Total Net Assets (AUM): 1079000000

Key Competitors

• iShares Core S&P Small-Cap ETF (IJR)
• Vanguard Small-Cap ETF (VB)
• Schwab Fundamental U.S. Small Company Index ETF (FNDA)
• Avantis U.S. Small Cap Value ETF (AVUV)

Competitive Landscape

The small-cap ETF market is highly competitive, with several large players dominating the space. JHSC competes by offering a multifactor approach, which may appeal to investors seeking enhanced returns through factor-based investing. Its advantage lies in its factor-based methodology. A disadvantage is its smaller AUM compared to larger, more established ETFs like IJR and VB, potentially affecting liquidity and trading costs.

Historical Performance: Historical performance data would be sourced from financial data providers (see Sources section).

Benchmark Comparison: Benchmark comparison would be performed against the John Hancock Dimensional Small Cap Index and/or the Russell 2000 Index.

Expense Ratio: 0.32

Average Trading Volume

The ETF exhibits moderate liquidity based on its average trading volume, which impacts ease of trade execution.

Bid-Ask Spread

The bid-ask spread represents a transaction cost for trading the ETF and can vary based on market conditions.

Market Environment Factors

Economic indicators, interest rates, and overall market sentiment can affect the performance of small-cap stocks and, consequently, JHSC. Sector growth prospects within the small-cap universe and general market conditions play a crucial role.

Growth Trajectory

Growth trends depend on the effectiveness of the multifactor model and the overall performance of the small-cap market. Changes to the strategy and holdings are driven by the index methodology.

Competitive Edge

JHSC's competitive advantage lies in its multifactor approach to small-cap investing, focusing on relative price, profitability, and management quality. This strategy aims to outperform traditional market-cap-weighted indexes. It offers exposure to a well-diversified portfolio of small-cap stocks selected using a systematic, rules-based approach. This may appeal to investors seeking a more active and sophisticated investment strategy compared to passive indexing.

Volatility

Historical volatility data would be required to assess JHSC's volatility and risk profile.

Market Risk

Specific risks include the volatility of small-cap stocks, sector concentration risk, and potential underperformance relative to its benchmark.

Ideal Investor Profile

The ideal investor is someone seeking exposure to the U.S. small-cap market with a focus on factors like relative price, profitability, and management quality. This ETF is suitable for investors who want to outperform market-cap-weighted indexes.

Market Risk

JHSC is suitable for long-term investors seeking diversified exposure to the small-cap segment, who are comfortable with the potential volatility associated with factor-based investing.

John Hancock Multifactor Small Cap ETF (JHSC) offers a multifactor approach to investing in the U.S. small-cap market, aiming to outperform market-cap-weighted indexes. Its focus on relative price, profitability, and management quality differentiates it from passively managed small-cap ETFs. While it has a smaller market share, it could be attractive to investors seeking a more active and factor-based investment strategy. Investors should consider its expense ratio and compare its performance against its benchmark and peers. The ETF's future performance will depend on the continued effectiveness of its multifactor model and the overall performance of the small-cap market.

Data Sources:

• John Hancock Investment Management Website
• ETF.com
• Morningstar.com
• FactSet
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share data is based on publicly available information and may vary depending on the source and date.