4 min readBy Ron Koren ETF Insider
How does the JHMC ETF work?
The JHMC ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
The John Hancock Multifactor Consumer Discretionary ETF (JHMC) is managed and issued by John Hancock Investment Management LLC. Established to provide investors with exposure to the consumer discretionary sector within the U.S. Universe, JHMC follows an index developed and maintained by Dimensional Fund Advisors LP. This ETF focuses on stocks with market capitalizations larger than that of the 1001st largest U.S. company, employing a multifactor investing strategy that considers market capitalization, relative price, and profitability. JHMC is a non-diversified fund that aims to replicate the performance of its underlying index by investing in a portfolio of securities, with periodic rebalancing to ensure alignment with the index's criteria.
While the primary focus of the JHMC Dividend ETF is not centered around dividends, it mirrors the dividend distribution of the underlying index. Dividend distributions typically occur on a periodic basis, in accordance with the dividend policies and performance of the constituent companies within the index. The ETF primarily invests in securities from the consumer discretionary sector, with weights determined through a multifactor investing approach, offering investors the potential for both capital appreciation and some level of dividend returns.
Tracking the Dimensional U.S. Targeted Value Consumer Discretionary Index is the primary objective of the JHancock Multifactor Consumer Discretionary ETF (JHMC). This ETF aims to replicate the performance of the index, which is developed and managed by Dimensional Fund Advisors LP. JHMC invests at least 80% of its net assets in securities that comprise the index, focusing on the consumer discretionary sector within the U.S. universe. The index employs a multifactor approach, considering factors like market capitalization, relative price, and profitability when selecting and weighting securities. With its semiannual reconstitution and rebalancing, JHMC seeks to provide investors with exposure to medium and smaller capitalization companies within the consumer discretionary sector, aligning with the index's rules-based methodology. Please note that JHMC may concentrate its investments in specific industries, making it a non-diversified fund.
The correlation aspect of the John Hancock Multifactor Consumer Discretionary ETF (JHMC) is vital for investors seeking exposure to the consumer discretionary sector within the U.S. Universe. JHMC's correlation with the consumer discretionary sector, driven by its multifactor investing approach, offers insights into the performance of medium and smaller capitalization companies in this sector. This correlation enables investors to make informed decisions about diversification and strategic beta strategies within their portfolios. To delve deeper into JHMC's correlations and uncover valuable insights about its behavior, consider using ETF Insider's web app, which provides comprehensive data visualization tools to analyze overlaps and correlations with other U.S. ETFs.
The JHMC Consumer Discretionary Sector ETF focuses on investments in the consumer discretionary sector within the U.S. Universe, with an emphasis on medium and smaller capitalization companies. This ETF follows a rules-based multifactor approach, adjusting weights based on market capitalization, relative price, and profitability factors. The consumer discretionary sector comprises companies from various industries, including restaurants, media, retail, leisure, hotels, apparel, automobiles, and consumer durables. Investors in this ETF aim to capture potential growth opportunities within the consumer discretionary sector, but it's important to note that this concentrated approach may carry higher risks compared to more diversified ETFs.
The exposure characteristic of the John Hancock Multifactor Consumer Discretionary ETF (JHMC) revolves around the consumer discretionary sector within the U.S. universe. This ETF invests at least 80% of its net assets in securities that compose its Index, which is developed and maintained by Dimensional Fund Advisors LP. The Index is designed to include securities with larger market capitalizations than the 1001st largest U.S. company at the time of reconstitution, primarily focusing on medium and smaller capitalization companies. The selection and weighting of securities within the Index are determined by a rules-based process that considers factors such as market capitalization, relative price, and profitability. As a result, JHMC provides exposure to a diversified basket of consumer discretionary companies, including those in industries like restaurants, media, consumer retail, leisure equipment, and more.
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