OREANDA-NEWS. John Hancock Investments today announced the official launch of six strategic beta John Hancock Multifactor ETFs. In July, John Hancock Investments disclosed that Dimensional Fund Advisors LP — a company regarded as one of the pioneers in strategic beta investing— was selected to design all six underlying indexes in line with Dimensional’s time-tested factor-based approach. Each passively managed John Hancock Multifactor ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of a Dimensional-designed index.

"We’re excited to be entering the ETF business at this time, and to bring our manager-of-managers approach to the world of strategic beta ETFs," said Andrew G. Arnott, president and CEO of John Hancock Investments. "Investors are facing a proliferation of ETF strategies today, and many investors are looking for more than just low-cost access to markets. For those reasons, it was important to us to develop an ETF product that seeks to address investor needs for performance potential, backed by an investment approach rooted in decades of academic research. That thinking is what led us to select Dimensional Fund Advisors."

Dimensional Fund Advisors has managed rules-based, multifactor strategies for more than 30 years and today is one of the most respected asset managers in the industry. "Dimensional is dedicated to implementing the great ideas in finance," explained Eduardo Repetto, co-CEO and co-CIO of Dimensional Fund Advisors. "Our approach is rooted in decades of academic research into the factors that drive higher expected returns. In the equity markets, we believe this means smaller capitalizations, lower relative prices, and higher profitability. Each of the John Hancock Multifactor ETFs seeks to track an index constructed to emphasize and balance those factors while managing investment costs."

The suite of John Hancock Multifactor ETFs, which will trade on the NYSE Arca, consists of:  

  • John Hancock Multifactor Large Cap ETF (NYSE Arca: JHML)
  • John Hancock Multifactor Mid Cap ETF (NYSE Arca: JHMM)
  • John Hancock Multifactor Consumer Discretionary ETF (NYSE Arca: JHMC)
  • John Hancock Multifactor Financials ETF (NYSE Arca: JHMF)
  • John Hancock Multifactor Healthcare ETF (NYSE Arca: JHMH)
  • Hancock Multifactor Technology ETF (NYSE Arca: JHMT)

The launch coincides with a surge in investor demand for strategic beta strategies as investors weigh the pros and cons of active and passive management. "We believe investors can benefit from combining active and passive strategies in their portfolios," said Mr. Arnott.

The firm also announced a robust campaign of advertising and promotional events in support of the launch of John Hancock Multifactor ETFs. A national advertising campaign kicks off in October, with TV, digital, and print ads running in a wide range of business publications and news properties.

The shares of the ETFs are not redeemable with the ETFs other than in Creation Unit aggregations. Instead, investors must buy or sell the ETF shares in the secondary market through a broker-dealer. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and may receive less than net asset value when selling.

Investing involves risk, including loss of principal. There is no guarantee strategies will be successful. 
Large company stocks could fall out of favor. The stock prices of midsize and small companies can change more frequently and dramatically than those of large companies, and value stocks may decline in price. A portfolio concentrated in one industry or sector or that holds a limited number of securities may fluctuate more than a diversified portfolio. ETF shares are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Due to various factors, shares may trade at a premium or discount to their NAV in the secondary market, and a fund’s holdings and returns may deviate from those of its index. These variations may be greater when markets are volatile or subject to unusual conditions. Brokerage commissions will reduce returns. Errors in the construction or calculation of a fund’s index may occur from time to time. Please see the funds’ prospectuses for additional risks.

John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP. 

The shares of the John Hancock Multifactor ETFs do not represent a deposit or an obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of, the shares of a John Hancock Multifactor ETF referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

Neither John Hancock Advisers, LLC nor Dimensional Fund Advisors LP guarantee the accuracy and/or the completeness of an index (each an “Underlying Index”) or any data included therein, and neither John Hancock Advisers, LLC nor Dimensional Fund Advisors LP shall have any liability for any errors, omissions or interruptions therein. Neither John Hancock Advisers, LLC nor Dimensional Fund Advisors LP make any warranty, express or implied, as to results to be obtained by a fund, owners of the shares of a fund or any other person or entity from the use of an Underlying Index, trading based on an Underlying Index, or any data included therein, either in connection with a fund or for any other use. Neither John Hancock Advisers, LLC nor Dimensional Fund Advisors LP make any express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to an Underlying Index or any data included therein. Without limiting any of the foregoing, in no event shall either John Hancock Advisers, LLC or Dimensional Fund Advisors LP have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) arising out of matters relating to the use of an Underlying Index, even if notified of the possibility of such damages. Dimensional Fund Advisors LP receives compensation from John Hancock Advisers, LLC in connection with licensing rights to an Underlying Index.