JHancock Preferred Income ETF earns a Morningstar Medalist Rating of Neutral with strength in areas such as People offset by weaker spots such as Process. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy gets a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in A rated bonds and government bonds compared with category peers. The management team has aligned itself with the interests of the shareholders by investing in the strategy, earning it an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Verizon

Morningstar's style-agnostic investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time. JHancock Preferred Income ETF earns a Below Average Process Pillar rating.    The process is bolstered by the size of its portfolio management team. With four portfolio managers at the helm, the fund is reasonably well-resourced. However, the rating is held back 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 beat 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. The parent firm's disappointing risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.0 stars, also weakens the process. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

 Compared with other funds in the Preferred Stock Morningstar Category, this fund has been consistently sensitive to interest-rate changes over the past few years. Opening the analysis to additional factors, the portfolio has displayed biases over time, whether towards or away from certain fixed-income instruments. Relative to the average strategy in the category, the managers have been substantially underweight A rated bonds in recent years. In the latest month, the strategy has also relatively underweighted A rated bonds compared with Morningstar Category peers. Additionally, the fund has exhibited a notable sector bias away from government bonds over the past few years. Similarly, in recent months, the strategy also had less exposure to government bonds than peers. Finally, during the past few years, the fund leaned meaningfully away from debt with 20- to 30-year maturities. In recent months, the strategy also had less exposure to debt with 20- to 30-year maturities compared to its peers.

 This strategy has a 6.4% 12-month yield, higher than its average peer's 5.9%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 6.5%. Typically, higher yields come at the cost of higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher than the average yield of its Morningstar Category peers. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated BB.

Below Average

Process

JHancock Preferred Income ETF earns an Above Average People Pillar rating. The leading factor influencing the rating is its parent firm's five-year success ratio of 45%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The size of the portfolio management team also strengthens the rating. With four portfolio managers, the fund is reasonably well-resourced. Lastly, the rating is limited by the turnover of its management team. The fund last saw a manager change one year ago, which suggests that it could do more to retain its portfolio managers.


Joseph H. Bozoyan, the longest-tenured manager on the strategy, boasts over 25 years of listed portfolio management experience.  The team's personal investments in the fund are insignificant, with the maximum investment by any one manager being between $50,000 and $100,000. That amount is too small to help align managers' interests with the fund's investors.

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 Preferred Income ETF

JHPI is an actively managed fund that attempts to generate income by primarily investing in preferred securities in the US market.

Elkhorn S&P High Quality Preferred ETF

First Trust Preferred Securities & Income ETF

First Trust Institutional Preferred Securities & Income ETF

Fidelity Preferred Securities & Income ETF

iSh SP US PrfSt Shs

Virtus InfraCap U.S. Preferred Stock ETF

Global X U.S. Preferred ETF

InfraCap REIT Preferred ETF

Global X Variable Rate Preferred ETF

AAM Low Duration Preferred and Income Sec ETF

VanEck Preferred Securities ex Financials ETF

Invesco Financial Preferred ETF

Invesco Preferred ETF

Principal Spectrum Preferred Secs Active ETF

Pimco Preferred And Capital Securities Active ETF

SPDR Wells Fargo Preferred Stock ETF

Global X SuperIncome Preferred ETF

Invesco Variable Rate Preferred ETF

PFFA is a well-diversified and consistently top-performing preferred stock ETF, enabled by management's bold allocation strategy.

U.S. Preferred Stocks Look Attractive And PFFA Is A Top-Performing Preferred Stocks ETF

John Hancock Corporate Bond ETF

John Hancock US High Dividend ETF

John Hancock International High Dividend ETF

John Hancock Mortgage-Backed Securities 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

Investors seeking yield-generating opportunities should also consider the benefits of preferred securities and a targeted preferred income exchange traded fund strategy.

An Attractive Yield-Generating ETF Strategy for Today's Market

Inflation is high and the rate outlook is for continued U.S. Federal Reserve tightening. This has put pressure on investors seeking a stable source of future cash flows that's not as sensitive to rising rates.

Seeking Stable Cash Flow in Today's Market

With rising rates and inflation causing so much uncertainty, advisors planning portfolios, particularly the fixed income portions, “really need to come up with some additional non-traditional ways of gaining that income,” according to Steve Deroian, U.S. co-head of retail product at John Hancock. “We don't know where the market's going to go, and we don't [.

ETF Leaders Powered by the NYSE: John Hancock's Steve Deroian

Income-minded investors who are looking for another yield-generating idea can consider the potential benefits of preferred securities and a related exchange traded fund. In the recent webcast, Balancing Yield and Risk with Preferred Securities, Rick Baker, managing director of the client portfolio management team, Manulife Investment Management, explains what preferred securities are.

A Preferred Securities ETF Could Help Generate Attractive Yields, Diversify a Portfolio

Against the backdrop of rising rates, higher inflation, and elevated volatility, balancing the search for yield and risk mitigation is no easy task. But one asset class that many overlook is preferred securities.

Balancing Yield and Risk with Preferred Securities

John Hancock Preferred Income Fund II

John Hancock Preferred Income Fund

John Hancock Tax-Advantaged Dividend Income Fund

John Hancock Investors Trust

John Hancock Income Securities Trust

John Hancock Premium Dividend Fund

BOSTON, Feb. 15, 2022 /PRNewswire/ - John Hancock Investment Management LLC (the "Adviser") today announced changes to the portfolio management teams for John Hancock Preferred Income Fund (NYSE: HPI), John Hancock Preferred Income Fund II (NYSE: HPF), John Hancock Preferred Income Fund III (NYSE: HPS), John Hancock Premium Dividend Fund (NYSE: PDT), John Hancock Tax-Advantaged Divided Fund (NYSE: HTD), John Hancock Income Securities Trust (NYSE: JHS), John Hancock Investors Trust (NYSE: JHI), John Hancock Mortgage-Backed Securities ETF (NYSE Arca: JHMB), and John Hancock Preferred Income ETF (NYSE Arca: JHPI). Each Fund is advised by the Adviser and subadvised by Manulife Investment Management (US) LLC (the "Subadviser").

JOHN HANCOCK ANNOUNCES PORTFOLIO MANAGER CHANGES FOR JOHN HANCOCK CLOSED-END FUNDS AND ETFs

On Wednesday, John Hancock Investment Management LLC, a company of Manulife Investment Management, announced the availability of the John Hancock Preferred Income ETF (JHPI). The exchange-traded fund (ETF) is sub-advised by Manulife Investment Management (US) LLC, John Hancock Investment Management's affiliated asset manager.

John Hancock Investment Management Launches Preferred Income ETF, ‘JHPI'

TSX/NYSE/PSE: MFC     SEHK: 945 BOSTON, Dec. 15, 2021 /PRNewswire/ - John Hancock Investment Management LLC, a company of Manulife Investment Management, today announced the availability of John Hancock Preferred Income ETF (ticker: JHPI). The exchange-traded fund (ETF) is subadvised by Manulife Investment Management (US) LLC, John Hancock Investment Management's affiliated asset manager.

News for John Hancock Preferred Income ETF ETF (JHPI)