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Is John Hancock Multifactor Small Cap ETF (JHSC) a Strong ETF Right Now?
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Launched on 11/08/2017, the John Hancock Multifactor Small Cap ETF (JHSC - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $691.89 million, this makes it one of the average sized ETFs in the Style Box - Small Cap Blend. JHSC is managed by John Hancock. This particular fund 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.
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 JHSC are 0.42%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.03%.
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.
JHSC's heaviest allocation is in the Industrials sector, which is about 18.6% of the portfolio. Its Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Darling Ingredients Inc (DAR) accounts for about 0.58% of the fund's total assets, followed by Littelfuse Inc (LFUS) and Element Solutions Inc (ESI).
The top 10 holdings account for about 4.71% of total assets under management.
Performance and Risk
So far this year, JHSC has gained about 8.98%, and it's up approximately 28.25% in the last one year (as of 04/30/2026). During this past 52-week period, the fund has traded between $36.04 and $46.67.
The fund has a beta of 1.03 and standard deviation of 18.65% for the trailing three-year period. With about 493 holdings, it effectively diversifies company-specific risk .
Alternatives
John Hancock Multifactor Small Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Small-Cap Index Fund ETF Shares (VB) tracks CRSP US Small Cap Index and the iShares Core S&P Small-Cap ETF (IJR) tracks S&P SmallCap 600 Index. Vanguard Small-Cap Index Fund ETF Shares has $75.35 billion in assets, iShares Core S&P Small-Cap ETF has $100.55 billion. VB has an expense ratio of 0.03% and IJR changes 0.06%.
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 - Small 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 Small Cap ETF (JHSC) a Strong ETF Right Now?
Launched on 11/08/2017, the John Hancock Multifactor Small Cap ETF (JHSC - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $691.89 million, this makes it one of the average sized ETFs in the Style Box - Small Cap Blend. JHSC is managed by John Hancock. This particular fund 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.
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 JHSC are 0.42%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.03%.
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.
JHSC's heaviest allocation is in the Industrials sector, which is about 18.6% of the portfolio. Its Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Darling Ingredients Inc (DAR) accounts for about 0.58% of the fund's total assets, followed by Littelfuse Inc (LFUS) and Element Solutions Inc (ESI).
The top 10 holdings account for about 4.71% of total assets under management.
Performance and Risk
So far this year, JHSC has gained about 8.98%, and it's up approximately 28.25% in the last one year (as of 04/30/2026). During this past 52-week period, the fund has traded between $36.04 and $46.67.
The fund has a beta of 1.03 and standard deviation of 18.65% for the trailing three-year period. With about 493 holdings, it effectively diversifies company-specific risk .
Alternatives
John Hancock Multifactor Small Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Small-Cap Index Fund ETF Shares (VB) tracks CRSP US Small Cap Index and the iShares Core S&P Small-Cap ETF (IJR) tracks S&P SmallCap 600 Index. Vanguard Small-Cap Index Fund ETF Shares has $75.35 billion in assets, iShares Core S&P Small-Cap ETF has $100.55 billion. VB has an expense ratio of 0.03% and IJR changes 0.06%.
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 - Small 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.