JHMB Profile
The John Hancock Mortgage-Backed Securities ETF is designed to provide investors with exposure to a broad array of mortgage-backed securities (MBS). Under normal market conditions, the fund commits at least 80% of its net assets, including any borrowed funds used for investment purposes, to MBS. These securities are primarily issued or guaranteed by U.S. governmental entities, such as Fannie Mae and Freddie Mac, as well as privately issued mortgage-related securities.
The fund's investment strategy encompasses a diverse range of mortgage-backed securities to capture income and potential capital gains from the mortgage market. By focusing on both government-backed and private-label MBS, the fund aims to balance credit risk and yield opportunities. The investment in these securities is intended to provide a steady income stream through regular interest payments, while also diversifying the portfolio's exposure to different segments of the mortgage market.
In addition to its core holdings in mortgage-backed securities, the fund retains the flexibility to invest up to 20% of its net assets in non-mortgage-backed securities. This may include other asset-backed securities, such as those backed by auto loans or student loans, as well as Collateralized Loan Obligations (CLOs) and cash or cash equivalents. This allocation provides additional avenues for income generation and helps to mitigate risks associated with mortgage-backed securities.
Overall, the John Hancock Mortgage-Backed Securities ETF offers investors a focused strategy on MBS, aiming to deliver attractive income while managing risk through diversification and selective allocation. The fund's approach allows it to capitalize on opportunities within the mortgage market while maintaining flexibility to adapt to changing market conditions.
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