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Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?

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A smart beta exchange traded fund, the John Hancock Multifactor Large Cap ETF (JHML - Free Report) debuted on 09/28/2015, and offers broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as 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.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

JHML is managed by John Hancock, and this fund has amassed over $1.02 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses.

The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st 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.

Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 1.11%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

JHML's heaviest allocation is in the Information Technology sector, which is about 25.3% of the portfolio. Its Financials and Industrials round out the top three.

When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.45% of the fund's total assets, followed by Nvidia Corp (NVDA) and Apple Inc (AAPL).

The top 10 holdings account for about 23.89% of total assets under management.

Performance and Risk

The ETF has added roughly 10.12% so far this year and it's up approximately 13.23% in the last one year (as of 09/02/2025). In the past 52-week period, it has traded between $59.74 and $76.71

The fund has a beta of 0.98 and standard deviation of 15.94% for the trailing three-year period, which makes JHML a medium risk choice in this particular space. With about 778 holdings, it effectively diversifies company-specific risk .

Alternatives

John Hancock Multifactor Large Cap ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.

iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $661.34 billion in assets, Vanguard S&P 500 ETF has $725.27 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.

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 - Large 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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