Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund launched on 09/28/2015.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexBecause the fund has amassed over $989.79 million, this makes it one of the larger ETFs in the Style Box - Large Cap Blend. JHML is managed by John Hancock. JHML, before fees and expenses, seeks to match the performance of the John Hancock Dimensional Large Cap Index.The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.Cost & Other ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.The fund has a 12-month trailing dividend yield of 1.15%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Information Technology sector - about 25.3% of the portfolio. Financials and Industrials round out the top three.Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.18% of total assets, followed by Nvidia Corp (NVDA) and Apple Inc (AAPL).JHML's top 10 holdings account for about 22.53% of its total assets under management.Performance and RiskThe ETF has added about 6.17% so far this year and was up about 14.53% in the last one year (as of 07/02/2025). In the past 52-week period, it has traded between $59.74 and $73.57The fund has a beta of 0.99 and standard deviation of 16.40% for the trailing three-year period, which makes JHML a medium risk choice in this particular space. With about 782 holdings, it effectively diversifies company-specific risk .AlternativesJohn Hancock Multifactor Large Cap ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.SPDR S&P 500 ETF (SPY) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. SPDR S&P 500 ETF has $635.74 billion in assets, Vanguard S&P 500 ETF has $688.09 billion. SPY has an expense ratio of 0.09% and VOO changes 0.03%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap BlendBottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks