JHPI Profile
The John Hancock Preferred Income ETF is strategically designed to offer investors exposure to a diversified portfolio of preferred stocks and other preferred securities. Under typical market conditions, the fund allocates at least 80% of its net assets to these preferred instruments. This investment category encompasses a broad range of securities, including convertible preferred securities, corporate hybrid securities, trust preferred securities, cumulative and non-cumulative preferred stocks, and depositary shares representing preferred stocks.
The fund's investment approach focuses on capturing income from preferred securities, which typically offer higher yields compared to common stocks and bonds. Preferred stocks are known for their priority in dividend payments and claims on assets in the event of liquidation, making them a favored choice for income-seeking investors. By including various forms of preferred securities, the fund aims to provide a stable income stream while diversifying across different types of preferred instruments.
In its investment strategy, the fund particularly emphasizes sectors with stable income potential. The adviser concentrates investments in the utilities and communications sectors, which are known for their relatively predictable revenue streams and strong market positions. These industries are often characterized by consistent demand and stable cash flows, which can enhance the fund's income generation capabilities.
Overall, the John Hancock Preferred Income ETF offers a focused approach to income investing through a diversified selection of preferred securities. By concentrating on sectors with reliable income profiles and including a broad spectrum of preferred instruments, the fund seeks to deliver attractive yields while managing risk through sector and security diversification.
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