A sound investment process and strong management team underpin JHancock Multifactor Large Cap ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and an underweight in quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy’s management team earns an Above Average People Pillar rating. 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

Amazon

NVIDIA

Alphabet

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Eli Lilly

JPMorgan Chase & Co

Broadcom

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 Multifactor Large Cap ETF earns an Above Average Process Pillar rating. 

The largest contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The process is limited by the fund's unimpressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

 This strategy tends to hold smaller, more value-oriented companies compared with its average peer in the Large Blend Morningstar Category. Analyzing additional factors, this strategy has consistently tilted toward companies with relatively higher trading volumes in the last few years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. The strategy has also had a defensive tilt, demonstrated by lower exposure to the quality factor than peers in recent years. This means the fund has avoided holding companies that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. Such exposure tends to pay off when markets are hot and to be costly when they are not. 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 has allocations in its top two sectors, industrials and utilities, that are similar to the category. The sectors with low exposure compared to category peers are technology and communication services, with technology underweighting the average portfolio by 3.2 percentage points of assets and communication services similar to the average. The portfolio is positioned across 778 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 19.7% of the portfolio's assets were concentrated in the top 10 fund holdings, compared to the category average's 48.8%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 5% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

JHancock Multifactor Large Cap ETF's strong team drives the strategy's Above Average People Pillar rating. There are four managers listed on the fund: Andres Torres, Rita Chen, Casey Baum, Joseph Hohn. Together, they manage a total of five strategies, with a Silver asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

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 Multifactor Large Cap ETF

JHML tracks an index of largest 800 US firms, weighted by multiple factors relative to their sector peers.

Making its debut on 09/28/2015, smart beta exchange traded fund John Hancock Multifactor Large Cap ETF (JHML) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.

Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?

Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the John Hancock Multifactor Large Cap ETF (JHML), a passively managed exchange traded fund launched on 09/28/2015.

Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar?

John Hancock Multifactor Materials ETF

John Hancock Multifactor Consumer Discretionary ETF

John Hancock Multifactor Energy ETF

JH Mltfct Fncls Shs

John Hancock Multifactor Industrials ETF

John Hancock Multifactor Mid Cap ETF

John Hancock Multifactor Consumer Staples ETF

John Hancock Dynamic Municipal Bond ETF

John Hancock Multifactor Small Cap ETF

Exchange traded fund investors can consider a unique multifactor approach to constructing a diversified investment portfolio. In the recent webcast, Cracking Open Factors: Beyond the Style Box, Brad Feeley, Managing Director, ETF Specialist, John Hancock Investment Management, explained that investors should focus on propensity and magnitude when scrutinizing an investment tool.

Look to Smart Beta ETFs to Provide Quality Market Exposure

John Hancock Multifactor Healthcare ETF

John Hancock Multifactor Technology ETF

While 2020 may feel like a “this time it's different” year, the reality is the core underpinnings of what makes for a winning portfolio haven't changed: controlling expenses, managing your taxes, and most importantly, having the right exposures for the current market regime. But with wild swings in both sectors and factors, how do you [.

Cracking Open Factors: Beyond the Style Box

As more take a harder look at their portfolio composition, many investors are turning to smart beta exchange traded funds to enhance their portfolios and meet the challenges ahead. “They’re kind of really starting to re-evaluate portfolios, and that’s kind of where our multi-factor ETFs come in as they’re used to using the cheap beta, [.

Smart Beta ETFs to Better Engage with Current Markets

ProShares Ultra Dow30

SPDR Dow Jones Industrial Average ETF

ProShares Short Dow30

ProShares UltraShort Dow30

Swedish Exp Cred ELEMENTS

WisdomTree U.S. Earnings 500 Fund

ALPS Equal Sector Weight ETF

First Trust Large Cap Core AlphaDEX Fund

First Trust Horizon Managed Volatility Domestic ETF

iShares Core S&P 500 ETF

iShares Russell Top 200 ETF

iShares Russell 2000 ETF

iShares Morningstar US Equity ETF

ProShares Short QQQ

ProShares UltraShort QQQ

ProShares Ultra QQQ

First Trust NASDAQ-100 Equal Weighted Index Fund

Invesco QQQ

Direxion NASDAQ-100 Equal Weighted Index Shares

First Trust NASDAQ-100 Ex-Technology Sector Index Fund

Invesco S&P 500 Equal Weight ETF

ProShares Short Russell2000

Schwab U.S. Large-Cap ETF

Worst 1 day market declines in order of magnitude.

How Bad Was Friday's Market Drop

Are All Your Investment Problems Solved?

Inspire 100 ETF

Axs Change Finance ESG ETF

Cornerstone Total Return Fund Inc

Trns DS S&P 500 Shs

Davis Select U.S. Equity ETF

First Trust Dow 30 Equal Weight ETF

Invesco S&P 100 Equal Weight ETF

ESGL Holdings Ltd

Madrna Domestic Shs Madrona Domestic

Goldman Sachs Equal Weight U.S. Large Cap Equity ETF

Prncpl SusMmnt Shs

Just recently, CNBC ran an article touting the call of "Billionaire Investor Ron Baron" of the Dow reaching 650,000 in just 50 years.

Dow 650,000? We Are Already There!

It is important to separate economic contractions, which we call recessions, and market crashes. Economic recessions have a much greater impact on investment portfolios than so-called stock market crashes.

2 Questions: Length Of Recession, Near-Term Strategy Choices - Weekly Blog # 600

Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF

iShares Core High Dividend ETF

ProShares S&P 500 Dividend Aristocrats ETF

OShares U.S. Quality Dividend ETF

iShares MSCI USA Quality Factor ETF

SPDR MSCI USA StrategicFactors ETF

First Trust Rising Dividend Achievers ETF

iShares Edge MSCI Min Vol USA ETF

Vanguard High Dividend Yield ETF

Consumer Discretionary Select Sector SPDR Fund

After a stellar Fed-induced rally in the first half, the U.S. market looks pricey.

5 ETF Strategies to Win in a Pricey Market

China news seems to be all the rage in the finance world.

Sentiment Speaks: Are You Being Tossed Around By The China News?

Should JHML Be on Your Investing Radar?

On Tuesday, the market broke out to all-time highs, but had failed to hold on to that level until a late surge on Friday.

The Bull Is Back... But Will It Stay?

We have a light economic calendar, plenty of earnings news, and competition from Washington.

Weighing The Week Ahead: Why Is The Market So Quiet?

Investors are still concerned over the &quot;issues&quot;, but China, crude oil and interest rates show stability.

S&P 500 Weekly Update: While The Uptrend Pauses, Earnings Season Is Off To A Good Start

A weak December leads to a “never ending rally”.

Sentiment Speaks: Equity Markets Showing Shades Of 2015

VanEck Vectors Gold Miners ETF

Invesco Ultra Short Duration ETF

iShares Gold Trust

Like stock splits, share repurchases in and of themselves are not necessarily a bad thing; they are just the least best use of cash.

Make Stock Buybacks Illegal?

Portfolio+ S&P 500 ETF

Listening to the message of the market will always outweigh the ongoing rhetoric. More often than not that talk is totally meaningless.

S&P 500 Weekly Update: April 2019, It's Deja Vu All Over Again

News for John Hancock Multifactor Large Cap ETF ETF (JHML)