John Hancock Multifactor ETF Designed by Dimensional Fund Advisors LP Provides Access to Companies in the New Communication Services Sector
BOSTON, MA (March 13, 2019)—John Hancock Investment Management today announced the John Hancock Multifactor Media and Communications ETF (NYSE Arca: JHCS) began trading on March 13, 2019. The fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the John Hancock Dimensional Media and Communications Index designed by Dimensional Fund Advisors. JHCS follows the recently revised sector classification scheme that expanded or replaced the narrowly defined telecommunication services sector with a broader mix of media, communications, and technology companies. This expanded definition of telecommunications has been embraced by multiple index providers, including MSCI, S&P, and FTSE Russell.
"The new John Hancock Multifactor Media and Communications ETF gives investors specific exposure to this new sector that represents an important segment of the overall market,” said Andrew G. Arnott, president and CEO of John Hancock Investment Management and head of Wealth and Asset Management, United States and Europe. "Our partnership with Dimensional allows the opportunity to build portfolios that include these transformative companies with the additional benefit of Dimensional’s time-tested multifactor approach.”
Dimensional Fund Advisors, the subadvisor to JHCS, is well known for multifactor investing and is subadvisor to the 14 existing John Hancock Multifactor ETFs. Dimensional’s approach is to build indexes and portfolios that favor certain factors, specifically smaller companies with lower relative prices and higher levels of profitability, that decades of academic research have shown to be key drivers of higher expected returns over time. The John Hancock Dimensional Media and Communications Index applies this strategy to the newly created media and communications sector.
"Our goal is to continue to launch products that meet the needs and expectations of our investors,” said Steve Deroian, U.S. head of ETF product at John Hancock Investment Management. "From our first ETF launch with Dimensional over three years ago, we’ve focused on offering clients the factor expertise for which Dimensional is known, and John Hancock Multifactor Media and Communications ETF completes our sector ETF suite available to investors.”
The fund is co-managed by Joseph F. Hohn, senior portfolio manager and vice president, Joel P. Schneider, deputy head of portfolio management and vice president, and Lukas J. Smart, CFA, senior portfolio manager and vice president at Dimensional. The estimated gross expense ratio is 0.85%. The net total expense ratio for the fund is 0.40%.
John Hancock Investment Management has had a relationship with Dimensional and its portfolio management teams for more than a decade, with strategies offered as stand-alone mutual funds and as portions of the John Hancock asset allocation portfolios. In late 2015, John Hancock Investment Management began launching ETFs built around Dimensional strategies. Today, the firm’s ETF offerings include U.S. large-, small-, and mid-cap portfolios, international portfolios, and a range of sector-specific offerings.
For more information about John Hancock Multifactor Media and Communications ETF and other John Hancock Investment Management funds, visit Sign up at jhinvestments.com.
About John Hancock and Manulife
John Hancock is a division of Manulife Financial Corporation, a leading international financial services group that helps people make their decisions easier and lives better. We operate primarily as John Hancock in the United States, and Manulife elsewhere. We provide financial advice, insurance and wealth and asset management solutions for individuals, groups and institutions. Assets under management and administration by Manulife and its subsidiaries were over CAD$1.1 trillion (US$794 billion) as of December 31, 2018. Manulife Financial Corporation trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK. Manulife can be found at manulife.com.
One of the largest life insurers in the United States, John Hancock supports more than 10 million Americans with a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, and college savings plans. Additional information about John Hancock may be found at johnhancock.com.
About John Hancock Investment Management
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we’re one of the strongest and most-recognized financial brands. We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Our approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with strong risk-adjusted returns across asset classes.
Request a prospectus or summary prospectus from your financial advisor, by visiting jhinvestments.com/etf, or by calling us at 800-225-5291. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should consider carefully before investing. Please read the prospectus carefully before investing.
The John Hancock Dimensional Media and Communications Index is designed to comprise securities in the media and communications sector within the U.S. universe whose market capitalizations are larger than that of the 1,001st largest U.S. company at the time of reconstitution. It is not possible to invest directly in an index.
Investing involves risks, including the potential loss of principal. There is no guarantee that a fund’s investment strategy will be successful. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Large company stocks could fall out of favor. The stock prices of midsize and small companies can change more frequently and dramatically than those of large companies, and value stocks may decline in price. A portfolio concentrated in one industry or sector or that holds a limited number of securities may fluctuate more than a diversified portfolio. Shares may trade at a premium or discount to their NAV in the secondary market, and a fund’s holdings and returns may deviate from those of its index. These variations may be greater when markets are volatile or subject to unusual conditions. Errors in the construction or calculation of a fund’s index may occur from time to time. Please see the fund’s prospectus for additional risks.
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
The shares of the John Hancock Multifactor ETFs do not represent a deposit or an obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of, the shares of a John Hancock Multifactor ETF referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP.