How does the JHMD ETF work?
3 min read
By Ron Koren, ETF Insider

How does the JHMD ETF work?

The JHancock Multifactor Developed International ETF, commonly referred to as JHMD, is an exchange-traded fund that offers investors exposure to developed markets outside the U.S. and Canada. The issuer of this ETF is John Hancock Investment Management. With a focus on multifactor investing, JHMD employs a unique approach to construct its portfolio.

JHMD Overview

John Hancock Investment Management, the issuer of the JHMD ETF, follows a multifactor investment approach. This strategy aims to provide investors with exposure to developed international markets, emphasizing securities with specific characteristics that are associated with higher returns. The ETF typically invests at least 80% of its net assets in securities that make up its underlying index.

JHMD Underlying and Exposure

The JHMD ETF tracks an index developed and maintained by Dimensional Fund Advisors LP. This index consists of securities from developed markets outside the U.S. and Canada. Eligible securities are chosen based on their market capitalizations and other factors, aiming to capture those with higher profitability and lower relative prices.

JHMD overlap How does work the JHMD ETF?JHMD overlap How does work the JHMD ETF?

JHMD Benefits to Invest In

Investing in the JHMD ETF offers several potential benefits. It provides exposure to developed international markets, which can help diversify a portfolio. Additionally, the multifactor investing approach seeks to enhance returns by targeting specific stock characteristics associated with outperformance.

JHMD Considerations Before Investing

Before investing in the JHMD ETF, it's important to consider various factors such as your investment goals, risk tolerance, and overall portfolio strategy. Understand the ETF's investment approach and how it aligns with your financial objectives.

In conclusion, the JHancock Multifactor Developed International ETF, offered by John Hancock Investment Management, provides investors with an opportunity to access developed international markets using a multifactor investing approach. Keep in mind that while ETFs can be valuable tools for diversification, they come with their own set of considerations. It's advisable to consult with a financial advisor and conduct thorough research before making any investment decisions.

Disclaimer: This article is for informational purposes only and does not provide investment advisory services.

JHMD ETF issuer
JHMD ETF official page

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FAQ

  • What is the JHMD ETF?

    The JHMD ETF is an exchange-traded fund that provides investors with exposure to a specific sector.

  • What is the underlying index that the JHMD ETF aims to track?

    The JHMD ETF aims to track the performance of a specific index, which includes companies involved in its respective sector.

  • What types of companies are included in the JHMD ETF?

    The JHMD ETF includes companies from its focused industry.

  • How does the JHMD ETF work?

    The JHMD ETF functions by pooling investors' capital to purchase a diversified portfolio of sector-related stocks.

  • What are the advantages of investing in the JHMD ETF?

    Investing in the JHMD ETF offers exposure to a specialized sector with potential for growth.