John Hancock Investments launches Multifactor Small Cap ETF
Index designed by Dimensional Fund Advisors
BOSTON, Nov. 13, 2017 /PRNewswire/ -- John Hancock Investments has expanded its exchange-traded fund (ETF) product lineup today with the launch of John Hancock Multifactor Small Cap ETF. Dimensional Fund Advisors LP ("Dimensional"), which is regarded as one of the pioneers in strategic beta investing, was selected to design the underlying equity index for the new small-cap ETF based on Dimensional's time-tested factor-based approach. The ETF (ticker JHSC) trades on the NYSE Arca.
"We're once again pleased to team up with Dimensional to bring their proven multifactor approach to investors seeking exposure to small-cap equity markets," said Andrew G. Arnott, president and CEO of John Hancock Investments. "Our firm's momentum in the ETF space has been strong, and we now have $1 billion in ETF assets under management."
Dimensional began applying the concept of factor investing more than 30 years ago. Today, the firm is a respected manager in the industry. Dimensional's approach is rooted in decades of academic research into the factors that drive expected returns and offers a compelling track record of delivering results to investors.
John Hancock Multifactor Small Cap ETF seeks to track and fully replicate a custom small-cap index designed by Dimensional. The new ETF consists of securities in the U.S. universe issued by companies whose market capitalizations are smaller than the 750th largest U.S. company but larger than the smallest 4% of U.S. companies.
"A focus on small caps is a logical extension of our product line, and complementary to our 12 previously launched multifactor ETFs," said Steve L. Deroian, head of ETF strategy at John Hancock Investments.
John Hancock Investments has had a relationship with Dimensional and its portfolio management teams since 2006, with strategies offered as both individual John Hancock mutual funds and through John Hancock asset allocation portfolios. Previous ETF launches have included U.S. large- and mid-cap portfolios, a developed market international portfolio, and a range of sector-specific offerings.
About John Hancock Investments
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of the strongest and most-recognized financial brands. We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Our 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.
About John Hancock and Manulife
John Hancock is a division of Manulife Financial Corporation, a leading international financial services group that helps people achieve their dreams and aspirations by putting customers' needs first and providing the right advice and solutions. We operate primarily as John Hancock in the United States, and Manulife elsewhere. We provide financial advice, insurance and wealth and asset management solutions for individuals, groups and institutions. Assets under management and administration by Manulife and its subsidiaries were over $1 trillion (US$806 billion) as of September 30, 2017. 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.
One of the largest life insurers in the United States, John Hancock supports approximately 10 million Americans with a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, and college savings plans. We also offer advice through Signator, a network of independent financial advisors. Additional information about John Hancock may be found at johnhancock.com.
The stock prices of small companies can change more frequently and dramatically than those of large companies, and value stocks may decline in price. 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 fund's prospectus for additional risks.
John Hancock Multifactor Exchange-Traded Fund (ETF) shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund.
Clients should carefully consider a fund's investment objectives, risks, charges, and expenses before investing. To request a prospectus or summary prospectus with this and other important information, call us at 800-225-6020, or visit us at jhinvestments.com.
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.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, the John Hancock Multifactor Small Cap ETF.
JHAN-2017-11-03-0790 ETFSCPR 11/17
SOURCE John Hancock Investments
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