4 min readBy Ron Koren ETF Insider
How does the FCUS ETF work?
The FCUS 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 JHancock Multifactor Utilities ETF (JHMU) is offered by John Hancock Investment Management. This ETF aims to replicate the performance of its underlying index, which is developed and maintained by Dimensional Fund Advisors LP. The index is designed to include securities within the utilities sector of the U.S. Universe, with market capitalizations larger than the 1001st largest U.S. company during reconstitution.
The John Hancock Multifactor Utilities ETF (JHMU) focuses on providing investors exposure to the utilities sector within the U.S. universe. While dividends may not be its primary focus, JHMU reflects the dividend distribution of the underlying index. Dividend distributions typically align with the dividend policies and performances of the constituent companies, and investors can expect these distributions on a regular basis, influenced by the multifactor investing approach employed by the ETF. JHMU is designed to invest in larger utilities sector companies with a rules-based selection and weighting process, providing potential dividend returns alongside its sector-focused investment strategy.
Tracking the Dimensional U.S. Targeted Value ETF (JHMU) involves closely following the investment strategy designed around the Dimensional Fund Advisors LP's Index. This ETF primarily invests in securities within the utilities sector of the U.S. Universe, with market capitalizations larger than the 1001st largest U.S. company at the time of reconstitution. The selection and weighting of securities within the index are driven by a multifactor approach, considering market capitalization, relative price, and profitability, aiming to increase the weights of smaller market capitalization, lower relative price, and higher profitability securities. JHMU is a semiannually reconstituted ETF, providing investors with a strategic beta approach to gain exposure to the utilities sector within the U.S. equity market.
The correlation aspect of the John Hancock Multifactor Utilities ETF (JHMU) is essential for understanding its behavior in relation to the broader U.S. utilities sector. As JHMU aims to track an index developed by Dimensional Fund Advisors LP, which focuses on larger-cap utilities companies with a unique multifactor approach, its correlation with the utilities sector is expected to be significant. Investors often analyze JHMU's correlation with other utilities ETFs and the broader market to gain insights into its multifactor investing strategy. If you're interested in studying these correlations in more detail, our tool ETF Insider can provide you with comprehensive data and visualization tools to uncover valuable insights and identify potential overlaps within the utilities sector.
The JHMU Sector ETF focuses on the utilities sector within the U.S. Universe, with an emphasis on larger market capitalizations. This ETF's investment strategy is based on a multifactor approach, incorporating factors like market capitalization, relative price, and profitability to select and weight securities. The utilities sector primarily includes companies involved in providing gas, electric, and water power, energy trading, and related infrastructure and services. Investors considering JHMU should be aware of its non-diversified nature, which means it may have a higher concentration of investments in a particular industry or group of industries, potentially increasing its risk exposure.
The exposure characteristic of the JHancock Multifactor Utilities ETF (JHMU) highlights its emphasis on the utilities sector within the U.S. equity market. JHMU aims to replicate the performance of its index, which comprises securities in the utilities sector with larger market capitalizations than the 1001st largest U.S. company. This strategy involves a multifactor investing approach, considering market capitalization, relative price, and profitability to determine the weights of individual securities within the index. Investors seeking exposure to the utilities sector can utilize JHMU as a targeted investment option, benefitting from a rules-based methodology that promotes diversification and strategic allocation within the sector.
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4 min readThe FCUS 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.
5 min readThe JHMU 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.
4 min readThe SXUS ETF, also known as the Sustainable U.S. Equity ETF, is a cutting-edge investment fund that focuses on socially responsible companies within the United States. This exchange-traded fund specifically targets firms that exhibit strong environmental, social, and governance (ESG) practices, enabling investors to support sustainability while potentially achieving competitive returns. Discover the transformative impact of the SXUS ETF in driving positive change and aligning investment choices with ethical values.
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