Is John Hancock Multifactor Small Cap ETF (JHSC) a Strong ETF Right Now?

The John Hancock Multifactor Small Cap ETF (JHSC) was launched on 11/08/2017, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Small Cap Blend category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.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.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexJHSC is managed by John Hancock, and this fund has amassed over $534.44 million, which makes it one of the average sized ETFs in the Style Box - Small Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the JOHN HANCOCK DIMENSIONAL SMALL CAP INDEX.The John Hancock Dimensional Small Cap Index is designed to comprise a subset of securities in the U.S. Universe issued by companies whose market capitalizations are smaller than the 750th largest U.S. company but excluding the smallest 4% of U.S. companies at the time of reconstitution.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Annual operating expenses for JHSC are 0.42%, which makes it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 0.82%.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.This ETF has heaviest allocation in the Industrials sector - about 21.20% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Exelixis Inc (EXEL) accounts for about 0.82% of total assets, followed by Revolution Medicines Inc (RVMD) and Lumen Technologies Inc (LUMN).Its top 10 holdings account for approximately 7.08% of JHSC's total assets under management.Performance and RiskThe ETF has added about 17.38% so far this year and was up about 26.74% in the last one year (as of 12/06/2024). In the past 52-week period, it has traded between $34.29 and $43.65.The ETF has a beta of 1.12 and standard deviation of 20.54% for the trailing three-year period. With about 249 holdings, it effectively diversifies company-specific risk.AlternativesJohn Hancock Multifactor Small Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.IShares Russell 2000 ETF (IWM) tracks Russell 2000 Index and the iShares Core S&P Small-Cap ETF (IJR) tracks S&P SmallCap 600 Index. IShares Russell 2000 ETF has $81.89 billion in assets, iShares Core S&P Small-Cap ETF has $93.89 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.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 - Small Cap Blend.Bottom 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 Small Cap ETF (JHSC): ETF Research Reports Exelixis, Inc. (EXEL): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports Revolution Medicines, Inc. (RVMD): Free Stock Analysis Report Lumen Technologies, Inc. (LUMN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks