Should John Hancock Multifactor Mid Cap ETF (JHMM) Be on Your Investing Radar? – August 24, 2022

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

The fund is sponsored by John Hancock. It has amassed assets over $2.59 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.

Why Mid Cap Blend

With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

Costs

When considering an ETF’s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.41%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.92%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector–about 15.90% of the portfolio. Industrials and Financials round out the top three.

Looking at individual holdings, Occidental Petroleum Corp (OXY Free Report) accounts for about 0.65% of total assets, followed by Dollar Tree Inc (DLTR Free Report) and Republic Services Inc (RSG Free Report) .

The top 10 holdings account for about 4.54% of total assets under management.

Performance and Risk

JHMM seeks to match the performance of the John Hancock Dimensional Mid Cap Index before fees and expenses. The John Hancock Dimensional Mid Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are between the 200th and 951st largest U.S. company.

The ETF has lost about -11.57% so far this year and is down about -6.81% in the last one year (as of 08/24/2022). In the past 52-week period, it has traded between $42.94 and $56.63.

The ETF has a beta of 1.09 and standard deviation of 26.56% for the trailing three-year period, making it a medium risk choice in the space. With about 665 holdings, it effectively diversifies company-specific risk.

Alternatives

John Hancock Multifactor Mid Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JHMM is a good option for those seeking exposure to the Style Box – Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The Vanguard MidCap ETF (VO Free Report) and the iShares Core S&P MidCap ETF (IJH Free Report) track a similar index. While Vanguard MidCap ETF has $51.61 billion in assets, iShares Core S&P MidCap ETF has $63.31 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.





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