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Should John Hancock Multifactor Small Cap ETF (JHSC) Be on Your Investing Radar?
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Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the John Hancock Multifactor Small Cap ETF (JHSC - Free Report) is a passively managed exchange traded fund launched on 11/08/2017.
The fund is sponsored by John Hancock. It has amassed assets over $346.10 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.42%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.02%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 18.50% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, American Campus Communities accounts for about 0.64% of total assets, followed by Popular Inc (BPOP - Free Report) and Nexstar Media Group Inc Cl A (NXST - Free Report) .
The top 10 holdings account for about 4.98% of total assets under management.
Performance and Risk
JHSC seeks to match the performance of the JOHN HANCOCK DIMENSIONAL SMALL CAP INDEX before fees and expenses. The John Hancock Dimensional Small Cap Index is designed to comprise a subset of securities in the U.S. Universe issued by companies whose market capitalizations are smaller than the 750th largest U.S. company but excluding the smallest 4% of U.S. companies at the time of reconstitution.
The ETF has lost about -14.08% so far this year and is down about -10.62% in the last one year (as of 09/09/2022). In the past 52-week period, it has traded between $28.30 and $37.86.
The ETF has a beta of 1.12 and standard deviation of 27.79% for the trailing three-year period. With about 431 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Small Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JHSC is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 ETF (IWM - Free Report) and the iShares Core S&P SmallCap ETF (IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $52.73 billion in assets, iShares Core S&P SmallCap ETF has $65.01 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.
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Should John Hancock Multifactor Small Cap ETF (JHSC) Be on Your Investing Radar?
Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the John Hancock Multifactor Small Cap ETF (JHSC - Free Report) is a passively managed exchange traded fund launched on 11/08/2017.
The fund is sponsored by John Hancock. It has amassed assets over $346.10 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.42%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.02%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 18.50% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, American Campus Communities accounts for about 0.64% of total assets, followed by Popular Inc (BPOP - Free Report) and Nexstar Media Group Inc Cl A (NXST - Free Report) .
The top 10 holdings account for about 4.98% of total assets under management.
Performance and Risk
JHSC seeks to match the performance of the JOHN HANCOCK DIMENSIONAL SMALL CAP INDEX before fees and expenses. The John Hancock Dimensional Small Cap Index is designed to comprise a subset of securities in the U.S. Universe issued by companies whose market capitalizations are smaller than the 750th largest U.S. company but excluding the smallest 4% of U.S. companies at the time of reconstitution.
The ETF has lost about -14.08% so far this year and is down about -10.62% in the last one year (as of 09/09/2022). In the past 52-week period, it has traded between $28.30 and $37.86.
The ETF has a beta of 1.12 and standard deviation of 27.79% for the trailing three-year period. With about 431 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Small Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JHSC is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 ETF (IWM - Free Report) and the iShares Core S&P SmallCap ETF (IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $52.73 billion in assets, iShares Core S&P SmallCap ETF has $65.01 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.