JHMM Profile
The John Hancock Multifactor Mid Cap ETF primarily focuses on investing at least 80% of its net assets, including any borrowings for investment purposes, in securities that constitute its underlying index. This index is specifically tailored to include a selection of mid-cap companies within the U.S. equity market, concentrating on those with market capitalizations ranging from the 200th to the 951st largest U.S. companies at the time of index reconstitution.
The ETF aims to capture the performance of this mid-cap segment by incorporating a multifactor investment approach, which is designed to identify and emphasize factors believed to drive long-term stock returns. These factors typically include value, momentum, quality, and volatility, which are leveraged to potentially enhance returns relative to the broader mid-cap market.
By targeting mid-cap companies, the ETF seeks to capitalize on the growth potential of firms that are larger than small-cap stocks but smaller than large-cap stocks. This middle ground often represents businesses with established market positions and growth opportunities that are not as mature as those of larger companies. The fund's investment strategy is centered on selecting securities that are expected to benefit from these growth dynamics.
Overall, the John Hancock Multifactor Mid Cap ETF provides investors with exposure to a diversified portfolio of U.S. mid-cap stocks, employing a systematic approach to factor-based investing. This strategy aims to deliver returns that exceed those of the broader mid-cap market while managing risk through a diversified, factor-focused investment approach. The fund remains non-diversified, reflecting its concentrated exposure to a specific segment of the U.S. equity market.
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