JHSC Profile
The John Hancock Multifactor Small Cap ETF aims to provide investors with exposure to a diversified selection of small-cap U.S. equities. The fund typically allocates at least 80% of its net assets, including any borrowings for investment purposes, to securities that are included in its benchmark index. This index is specifically designed to include a subset of small-cap stocks from the U.S. market, excluding the smallest 4% of companies by market capitalization at the time of index reconstitution.
The ETF focuses on companies that fall between the 750th largest U.S. company and the smallest 4% by market capitalization. By targeting this segment of the market, the fund aims to capture the growth potential of smaller, often high-growth companies while avoiding the most illiquid and speculative small-cap stocks. This approach seeks to provide investors with a balanced exposure to small-cap equities that exhibit multifactor characteristics such as value, quality, size, and momentum.
The fund’s multifactor investment strategy involves selecting stocks based on a combination of various fundamental and technical factors. This strategy aims to enhance performance by identifying companies that exhibit strong financial metrics, favorable valuation, and positive momentum trends. The ETF’s approach is designed to potentially offer higher returns and manage risk more effectively than traditional market-cap-weighted indices.
Managed by John Hancock Investment Management, a prominent asset management firm, the ETF benefits from the firm’s expertise in small-cap investing and factor-based strategies. John Hancock’s investment team utilizes rigorous research and advanced analytics to construct the fund’s portfolio, focusing on stocks with strong multifactor characteristics. This expertise helps to ensure that the fund delivers a well-constructed small-cap equity exposure with the potential for attractive risk-adjusted returns.
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