Should John Hancock Multifactor Mid Cap ETF (JHMM) Be on Your Investing Radar?

The John Hancock Multifactor Mid Cap ETF (JHMM) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.The fund is sponsored by John Hancock. It has amassed assets over $4.28 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market.Why Mid Cap BlendCompared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus they have a nice balance of growth potential and stability.Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.42%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.96%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector--about 20.20% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, United Rentals Inc (URI) accounts for about 0.58% of total assets, followed by Vistra Corp (VST) and Ameriprise Financial Inc (AMP).The top 10 holdings account for about 4.83% of total assets under management.Performance and RiskJHMM 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.The ETF has added about 5.26% so far this year and was up about 21.28% in the last one year (as of 01/23/2025). In the past 52-week period, it has traded between $51.90 and $64.80.The ETF has a beta of 1.10 and standard deviation of 18.71% for the trailing three-year period, making it a medium risk choice in the space. With about 665 holdings, it effectively diversifies company-specific risk.AlternativesJohn Hancock Multifactor Mid Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JHMM is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $76.08 billion in assets, iShares Core S&P Mid-Cap ETF has $99.90 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To 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 Reports Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report United Rentals, Inc. (URI): Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Vanguard Mid-Cap ETF (VO): ETF Research Reports Vistra Corp. (VST): 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