John Hancock Multifactor ETF: A Strong Player in Large Cap Blend

John Hancock Multifactor Large Cap ETF (JHML) offers investors a solid choice in smart beta ETFs. With a strong fund size, competitive expense ratio, and significant allocation to technology, it targets effective risk-return performance in the large cap blend segment.

Date: 27-02-2025

AI Rating: 7

The recent report provides a comprehensive overview of the John Hancock Multifactor Large Cap ETF (JHML), focusing on its structure as a smart beta fund. JHML offers investors a diversified exposure to the large-cap blend category, with over $964.65 million in assets, indicating strong investor interest.

Performance and Returns
As of the report's date, JHML has returned approximately 1.85% year-to-date and 15.46% over the last year, reflecting a robust performance relative to market expectations over the past year. The ETF has traded within a range of $61.15 to $73.44, demonstrating some volatility which is typical for funds that focus on non-cap weighted strategies.

Expense and Yield
The expense ratio for JHML is 0.29%, which is competitive within its category, suggesting that it can deliver returns efficiently over the long term. The 12-month trailing dividend yield stands at 1.14%, providing periodic income to investors, which is particularly attractive for income-focused investors.

Sector Allocation
JHML's portfolio is significantly weighted towards the Information Technology sector at around 24%, with substantial holdings in major companies like Apple Inc. (AAPL), Microsoft Corp (MSFT), and Amazon.com Inc (AMZN). The focus on technology reflects the sector's importance in driving market performance, which can positively impact the ETF's value.

Risk Profile
The ETF's beta of 1.01 and a standard deviation of 16.30% indicate it carries a medium risk profile, suitable for investors looking to balance growth with volatility. The diversification across 773 holdings helps mitigate company-specific risks, aligning well with investor preferences for risk management.

In conclusion, JHML represents a compelling option for investors seeking exposure to large-cap blend strategies, particularly those looking to outperform traditional market-weighted benchmarks through smart beta approaches.

Stocks: JHML AAPL MSFT AMZN VOO SPY