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

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

What Are Smart Beta ETFs?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

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.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix 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

Managed by John Hancock, JHML has amassed assets over $1.06 billion, making it one of the larger ETFs in the Style Box - Large Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the John Hancock Dimensional Large Cap Index.

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

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.

Annual operating expenses for JHML are 0.29%, which makes it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 1.03%.

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.

JHML's heaviest allocation is in the Information Technology sector, which is about 25.9% of the portfolio. Its Financials and Industrials round out the top three.

Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.34% of total assets, followed by Nvidia Corp (NVDA) and Microsoft Corp (MSFT).

JHML's top 10 holdings account for about 24.79% of its total assets under management.

Performance and Risk

So far this year, JHML has added roughly 2.25%, and it's up approximately 16.96% in the last one year (as of 01/07/2026). During this past 52-week period, the fund has traded between $59.74 and $81.65.

JHML has a beta of 0.98 and standard deviation of 14.18% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 786 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 $772.71 billion in assets, Vanguard S&P 500 ETF has $834.23 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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