Skip to Content
ETF Specialist

A Closer Look at the New John Hancock ETFs

These funds effectively mimic Dimensional’s distinctive investment approach in an index format.

Mentioned: , , , , , , , , ,

In September, John Hancock made its first foray into the exchange-traded fund business, launching six ETFs based on indexes designed by Dimensional Fund Advisors. Dimensional is the subadvisor on these funds, an extension of its long-standing subadvisory relationship with John Hancock. In contrast to Dimensional’s mutual funds, which are only available to individual investors through a financial advisor or a platform such as a 401(k) plan, anyone can gain access to these ETFs.

The lineup includes John Hancock Multifactor Large Cap ETF (JHML), which tracks an index that employs a strategy similar to  DFA US Core Equity (DFEOX), which has a Morningstar Analyst Rating of Silver. Both funds offer broad exposure to their respective market segments but overweight stocks with lower valuations, smaller market capitalizations, and greater profitability. Each of these characteristics has historically been associated with higher long-term returns. The core equity fund does not track an index, and it covers the full market-cap spectrum of the U.S. market, from large to small. In contrast, the John Hancock ETF tracks an index that focuses on large- and mid-cap stocks. John Hancock Multifactor Mid-Cap ETF (JHMM), John Hancock Multifactor Consumer Discretionary ETF (JHMC), John Hancock Multifactor Healthcare ETF (JHMH), John Hancock Multifactor Financials ETF (JHMF), and John Hancock Multifactor Technology ETF (JHMT) apply the same approach in their respective segments of the market.

Alex Bryan does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.