JHCB Profile
The John Hancock Corporate Bond ETF is strategically focused on investing in a diversified portfolio of corporate bonds. Under normal market conditions, the fund allocates at least 80% of its net assets, which includes any borrowings for investment purposes, into corporate bonds. This emphasis on corporate bonds aims to provide investors with exposure to the credit sector, seeking to generate income through interest payments from a wide range of corporate issuers.
In addition to its primary investment in corporate bonds, the fund has the flexibility to invest up to 20% of its net assets in investment-grade bank loans, including loan participations. These loans are often sought for their higher yield compared to traditional bonds, offering an additional layer of income potential. The fund also retains the option to invest in cash and cash equivalents, which provides liquidity and flexibility to respond to market conditions.
To further enhance its investment strategy, the John Hancock Corporate Bond ETF may allocate up to 10% of its total assets to securities denominated in foreign currencies. This exposure to international markets can offer additional diversification and potential for higher returns, albeit with an associated currency risk. The fund's international investments are selected with the aim of balancing potential rewards with the risks of foreign exchange fluctuations.
Managed by John Hancock's experienced investment team, the ETF benefits from active oversight and a disciplined approach to bond selection. The team's expertise in credit analysis and market trends is employed to optimize the fund's performance and manage risks associated with corporate bonds and other fixed-income securities. Investors should consider the fund's focus on corporate bonds and its potential for additional yield from bank loans and foreign securities when evaluating its suitability for their portfolios.
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