Jhancock U.S. High Dividend ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy earns an Average Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a high quality exposure is rooted in holding stocks with low financial leverage and strong returns on equity. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Microsoft

Apple

NVIDIA

Altria

ONEOK

Prudential Financial

Watsco

Intuit

Pfizer

Merck

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Jhancock U.S. High Dividend ETF earns an Average Process Pillar rating. 

The main contributor to the rating is low expenses across its parent firm's funds, whose fees rank in their respective category's middle quintile on average. The pattern of low fees at the firm indicates that it is focused on delivering strong results for investors. The size of the portfolio management team also bolsters the rating. With three portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 38%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

 This strategy skews toward smaller, more growth-oriented companies than its average peer in the Large Value Morningstar Category. Analyzing additional factors, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to suffer from a significant loss. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy also has had a defensive tilt, with exposure to higher-quality stocks compared with peers in recent years. This means that the fund holds companies that are profitable, growing, and have solid balance sheets. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. This orientation tends to pay off most prominently when markets are hot. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology and real estate relative to the category average by 23.7 and 3.6 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and consumer defensive, underweight the average by 7.6 and 4.0 percentage points of assets, respectively. The portfolio is positioned across 82 holdings and is relatively concentrated. Specifically, 31.4% of the fund’s assets are housed within the top 10 holdings, compared with the category’s 27.4% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 15% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

Jhancock U.S. High Dividend ETF earns an Above Average People Pillar rating. Geoffrey G. Kelley, the longest-tenured manager on the strategy, boasts 18 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.2 stars, indicating that their risk-adjusted returns have been in line with the category average. Although the team is small, it is a solid supporting cast. Together, the three listed managers boast more than an average of 15 years of listed portfolio management experience. As a team, they manage four investment vehicles together, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha in aggregate. The highest personal investment in the fund by any of its managers is between $100,000 and $500,000. That's on the low side--it would need to be more than $1 million for us to see the investment as sufficient to promote the strong alignment of their interests with the strategy's investors. 

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Above Average

People

Manulife Financial Corp has revamped its wealth- and asset-management business off the long-term strength of its successful U.S. unit, meriting an Above Average Parent rating. 

One of Canada’s Big Three life insurance companies, Manulife operates primarily in Canada, the United States, and Asia, with the bulk of assets in the U.S. The firm united its investment and wealth-management groups into a single, global segment in 2017 and 2018 and showcased it as a high-potential business. Since then, the group has restructured to mix three regional heads—U.S. & Europe, Asia, and Canada—with three global leaders segmented by channel: Retail, Retirement, and Institutional.

Manulife has entrusted this initiative to key individuals from its U.S. outfit, John Hancock Investments. For instance, Andy Arnott recently shifted from focusing on the U.S. and European unit to head up the firm’s global retail efforts. Leadership hopes this structure will allow it to leverage successful initiatives in its distinct regional markets.

John Hancock’s manager research team has long prioritized best-in-class managers regardless of firm affiliation. While much of the firm’s fixed-income strategies are run by Manulife teams globally, external managers dominate the firm’s equity lineup in the U.S. In its home market of Canada, Manulife’s internal teams, which boast strengths and weaknesses, manage most of the firm’s offerings, though the firm also has a strategic partnership with investment stalwart Mawer.

Parent

John Hancock US High Dividend ETF

JHDV is an actively managed fund of high dividend-paying or high dividend growth stocks. Selection and weighting are based on a proprietary systematic approach of US large- and mid-cap companies.

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John Hancock Preferred Income ETF

In the months leading up to Exchange 2023, John Hancock Investment Management was focused on income, said co-head of U.S. retail product Steve Deroian. ﻿ In an environment of rising interest rates, “investors are faced with the dilemma of how” to get income, Deroian said.

NYSE's ETF Leaders: John Hancock's Steve Deroian

John Hancock Investment Management has launched the John Hancock U.S. High Dividend ETF (NYSE Arca: JHDV). The investment objective of JHDV, which trades on the NYSE Arca, is to seek a high level of current income with long-term growth of capital as a secondary objective.

John Hancock Launches U.S. High Dividend ETF

TSX/NYSE/PSE: MFC     SEHK: 945 BOSTON , Sept. 28, 2022 /PRNewswire/ - John Hancock Investment Management, a company of Manulife Investment Management, announced today that it has launched John Hancock U.S. High Dividend ETF (NYSE: JHDV).

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