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Is John Hancock Multifactor Mid Cap ETF (JHMM) a Strong ETF Right Now?
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Launched on 09/28/2015, the John Hancock Multifactor Mid Cap ETF (JHMM - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by John Hancock. JHMM has been able to amass assets over $2.94 billion, making it one of the larger ETFs in the Style Box - Mid Cap Blend. JHMM, before fees and expenses, seeks to match the performance of the John Hancock Dimensional Mid Cap Index.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.41%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.15%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Industrials sector - about 19.10% of the portfolio. Information Technology and Financials round out the top three.
When you look at individual holdings, Nucor Corp (NUE - Free Report) accounts for about 0.60% of the fund's total assets, followed by Parker Hannifin Corp (PH - Free Report) and United Rentals Inc (URI - Free Report) .
The top 10 holdings account for about 4.86% of total assets under management.
Performance and Risk
So far this year, JHMM has gained about 0.58%, and is down about -2.37% in the last one year (as of 05/18/2023). During this past 52-week period, the fund has traded between $42.60 and $51.69.
The fund has a beta of 1.08 and standard deviation of 20.52% for the trailing three-year period, which makes JHMM a medium risk choice in this particular space. With about 652 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 $50.54 billion in assets, iShares Core S&P Mid-Cap ETF has $64.99 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.
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Is John Hancock Multifactor Mid Cap ETF (JHMM) a Strong ETF Right Now?
Launched on 09/28/2015, the John Hancock Multifactor Mid Cap ETF (JHMM - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by John Hancock. JHMM has been able to amass assets over $2.94 billion, making it one of the larger ETFs in the Style Box - Mid Cap Blend. JHMM, before fees and expenses, seeks to match the performance of the John Hancock Dimensional Mid Cap Index.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.41%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.15%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Industrials sector - about 19.10% of the portfolio. Information Technology and Financials round out the top three.
When you look at individual holdings, Nucor Corp (NUE - Free Report) accounts for about 0.60% of the fund's total assets, followed by Parker Hannifin Corp (PH - Free Report) and United Rentals Inc (URI - Free Report) .
The top 10 holdings account for about 4.86% of total assets under management.
Performance and Risk
So far this year, JHMM has gained about 0.58%, and is down about -2.37% in the last one year (as of 05/18/2023). During this past 52-week period, the fund has traded between $42.60 and $51.69.
The fund has a beta of 1.08 and standard deviation of 20.52% for the trailing three-year period, which makes JHMM a medium risk choice in this particular space. With about 652 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 $50.54 billion in assets, iShares Core S&P Mid-Cap ETF has $64.99 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.