We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is John Hancock Multifactor Mid Cap ETF (JHMM) a Strong ETF Right Now?
Read MoreHide Full Article
A smart beta exchange traded fund, the John Hancock Multifactor Mid Cap ETF (JHMM - Free Report) debuted on 09/28/2015, and offers broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
JHMM is managed by John Hancock, and this fund has amassed over $3.08 billion, which makes it one of the larger ETFs in the Style Box - Mid Cap Blend. This particular fund seeks to match the performance of the John Hancock Dimensional Mid Cap Index before fees and expenses.
The John Hancock Dimensional Mid Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are between the 200th and 951st largest U.S. company.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.41% for JHMM, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.23%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
JHMM's heaviest allocation is in the Industrials sector, which is about 19.60% of the portfolio. Its Financials and Information Technology round out the top three.
Looking at individual holdings, On Semiconductor (ON - Free Report) accounts for about 0.70% of total assets, followed by Dr Horton Inc (DHI - Free Report) and Builders Firstsource Inc (BLDR - Free Report) .
The top 10 holdings account for about 2.79% of total assets under management.
Performance and Risk
The ETF has added about 2.61% and it's up approximately 9.88% so far this year and in the past one year (as of 09/29/2023), respectively. JHMM has traded between $42.60 and $51.69 during this last 52-week period.
JHMM has a beta of 1.09 and standard deviation of 19.29% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 655 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Mid Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Mid-Cap ETF (VO - Free Report) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) tracks S&P MidCap 400 Index. Vanguard Mid-Cap ETF has $52.06 billion in assets, iShares Core S&P Mid-Cap ETF has $71.04 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is John Hancock Multifactor Mid Cap ETF (JHMM) a Strong ETF Right Now?
A smart beta exchange traded fund, the John Hancock Multifactor Mid Cap ETF (JHMM - Free Report) debuted on 09/28/2015, and offers broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
JHMM is managed by John Hancock, and this fund has amassed over $3.08 billion, which makes it one of the larger ETFs in the Style Box - Mid Cap Blend. This particular fund seeks to match the performance of the John Hancock Dimensional Mid Cap Index before fees and expenses.
The John Hancock Dimensional Mid Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are between the 200th and 951st largest U.S. company.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.41% for JHMM, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.23%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
JHMM's heaviest allocation is in the Industrials sector, which is about 19.60% of the portfolio. Its Financials and Information Technology round out the top three.
Looking at individual holdings, On Semiconductor (ON - Free Report) accounts for about 0.70% of total assets, followed by Dr Horton Inc (DHI - Free Report) and Builders Firstsource Inc (BLDR - Free Report) .
The top 10 holdings account for about 2.79% of total assets under management.
Performance and Risk
The ETF has added about 2.61% and it's up approximately 9.88% so far this year and in the past one year (as of 09/29/2023), respectively. JHMM has traded between $42.60 and $51.69 during this last 52-week period.
JHMM has a beta of 1.09 and standard deviation of 19.29% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 655 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Mid Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Mid-Cap ETF (VO - Free Report) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) tracks S&P MidCap 400 Index. Vanguard Mid-Cap ETF has $52.06 billion in assets, iShares Core S&P Mid-Cap ETF has $71.04 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.