Welcome to a new dimension in ETF investing
At John Hancock Investments, we believe investors can benefit from a blend of factors working together to drive performance. That’s why we’re bringing our manager-of-managers approach to the ETF market, teaming up with Dimensional Fund Advisors, a company regarded as one of the pioneers in strategic beta investing
Many traditional indexes and index funds are weighted by market capitalization, a bias that can expose investors to certain risks and potentially reduce returns. Strategic beta strategies such as John Hancock Multifactor ETFs offer a different approach. Each passively managed ETF seeks to improve upon cap-weighted strategies by tracking a custom index that combines active management insight with the discipline of a rules-based approach. The result leverages the goals of both active and passive management.
Not all investment approaches are created equal. For more than 30 years, Dimensional Fund Advisors has leveraged academic research in their approach to factor-based investing, a style that seeks to identify and isolate those equity characteristics that are true drivers of long-term performance: smaller capitalizations, lower valuations, and higher profitability. Each of our ETFs seeks to track an index that combines multiple factors into one targeted portfolio designed not just to mirror the market, but to outperform it.
For illustrative purposes only.
At John Hancock Investments, we build funds based on investor needs, then search the world to find proven portfolio teams with specialized expertise in those strategies. As a manager of managers, we apply vigorous oversight to ensure that they continue to meet our uncompromising standards and serve the best interests of our shareholders. It’s an approach that led us to deepen our relationship with Dimensional Fund Advisors in launching John Hancock Multifactor ETFs. We think it's a better way to invest.
Understanding how to use ETFs in a portfolio is an important part of any conversation about asset allocation. Our work with financial advisors reveals three widely used approaches to ETF implementation, each with varying degrees of active and passive management.
Examples are hypothetical, are not actual portfolios, and may not be appropriate for all investors.
Learn more about our exchange-traded funds and how they can work in your portfolio. Or for more information about any of our product offerings, contact us directly.