Is John Hancock Multifactor Mid Cap ETF (JHMM) a Strong ETF Right Now?

A smart beta exchange traded fund, the John Hancock Multifactor Mid Cap ETF (JHMM) debuted on 09/28/2015, and offers broad exposure to the Style Box - Mid Cap Blend category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexManaged by John Hancock, JHMM has amassed assets over $4.15 billion, making it one of the larger ETFs in the Style Box - Mid Cap Blend. This particular fund seeks to match the performance of the John Hancock Dimensional Mid Cap Index before fees and expenses.The John Hancock Dimensional Mid Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are between the 200th and 951st largest U.S. company.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for JHMM are 0.42%, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 1.05%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.JHMM's heaviest allocation is in the Industrials sector, which is about 20.4% of the portfolio. Its Financials and Information Technology round out the top three.Looking at individual holdings, Vistra Corp (VST) accounts for about 0.6% of total assets, followed by United Rentals Inc (URI) and Flex Ltd (FLEX).The top 10 holdings account for about 4.79% of total assets under management.Performance and RiskThe ETF has added roughly 2.8% and it's up approximately 12.23% so far this year and in the past one year (as of 07/01/2025), respectively. JHMM has traded between $50.32 and $64.80 during this last 52-week period. The ETF has a beta of 1.02 and standard deviation of 18.32% for the trailing three-year period, making it a medium risk choice in the space. With about 671 holdings, it effectively diversifies company-specific risk .AlternativesJohn Hancock Multifactor Mid Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Mid-Cap ETF (VO) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH) tracks S&P MidCap 400 Index. Vanguard Mid-Cap ETF has $82.6 billion in assets, iShares Core S&P Mid-Cap ETF has $94.75 billion. VO has an expense ratio of 0.04% and IJH changes 0.05%.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 - Mid 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 Mid Cap ETF (JHMM): 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