John Hancock Investments launches five new multifactor sector ETFs
Underlying indexes designed by Dimensional Fund Advisors
BOSTON, March 29, 2016 /PRNewswire/ -- John Hancock Investments today expanded its exchange-traded fund (ETF) product lineup by launching five new sector multifactor ETFs. As with the six ETFs that John Hancock Investments launched in September 2015, Dimensional Fund Advisors LP—a company regarded as one of the pioneers in strategic beta investing—was selected to design the underlying indexes for the five new sector funds, based on Dimensional's time-tested factor-based approach.
Now trading on the NYSE Arca, the new funds are:
John Hancock Multifactor Consumer Staples ETF (JHMS)
John Hancock Multifactor Energy ETF (JHME)
John Hancock Multifactor Industrials ETF (JHMI)
John Hancock Multifactor Materials ETF (JHMA)
John Hancock Multifactor Utilities ETF (JHMU)
"We're pleased to be able to bring Dimensional's proven multifactor approach to a broader set of sector ETFs," said Andrew G. Arnott, president and CEO of John Hancock Investments. "Investors are increasingly looking for a better way to achieve equity market beta than relying solely on traditional capitalization-weighted indexes, and our lineup of John Hancock Multifactor ETFs now provides a broad range of tools for doing just that."
Dimensional started applying the concept of multifactor investing more than 30 years ago, and today the firm is one of the most respected managers in the industry. Dimensional's approach is rooted in decades of academic research into the factors that drive expected returns, along with a record of delivering results to investors. John Hancock Investments has had a relationship with Dimensional and its portfolio management teams since 2006, resulting in strategies being offered as both individual John Hancock mutual funds and through John Hancock asset allocation portfolios.
As disclosed in the registration statements, each John Hancock multifactor sector ETF will maintain an objective of seeking to provide investment results that closely correspond, before fees and expenses, to the performance of its underlying index. While the ETFs are passively managed, the indexes will embody aspects of Dimensional's multifactor investment philosophy and approach to portfolio construction, along with rules aimed at minimizing unnecessary or costly turnover.
John Hancock Investments has also embarked on a robust advertising campaign in support of John Hancock Multifactor ETFs. A national advertising campaign currently under way includes TV, digital, and print ads running in a wide range of trade publications and financial news properties.
ETF shares are not individually redeemable and are issued and redeemed by an ETF at their net asset value ("NAV") only in large, specified blocks of Shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
Investing involves risk, including the potential loss of principal. There is no guarantee that a fund's investment 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. 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. 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.
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-6020, or visit our website at jhinvestments.com/etf. Please read the prospectus carefully before investing or sending money.
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.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Neither John Hancock Advisers, LLC nor Dimensional Fund Advisors LP guarantees the accuracy and/or 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 makes 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 makes any express or implied warranties, and expressly disclaims 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.
All trademarks are property of their respective owners. All rights reserved.
Statements in this press release that are not historical facts are forward-looking statements as defined by U.S. securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors that are, in some cases, beyond the ETF's control and could cause actual results to differ materially from those set forth in the forward-looking statements.
About John Hancock Investments
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of America's strongest and most-recognized brands. As a manager of managers, John Hancock Investments searches the world to find proven portfolio teams with specialized expertise for every fund we offer, then we apply vigorous investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Our unique approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with strong risk-adjusted returns across asset classes. John Hancock Investments managed more than $132 billion in assets as of December 31, 2015.
About John Hancock Financial and Manulife
John Hancock Financial is a division of Manulife, a leading Canada-based financial services group with principal operations in Asia, Canada, and the United States. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, our group of companies offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents, and distribution partners. Assets under management and administration by Manulife and its subsidiaries were C$935 billion (US$676 billion) as of December 31, 2015. Manulife Financial Corporation trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK. Manulife can be found at manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.
JHAN-2016-03-22-0262 ETFPR2 3/16
CONTACT: Beth McGoldrick
617-663-4751
[email protected]
SOURCE John Hancock Investments
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