Should John Hancock Multifactor Small Cap ETF (JHSC) Be on Your Investing Radar?

The John Hancock Multifactor Small Cap ETF (JHSC) was launched on 11/08/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.The fund is sponsored by John Hancock. It has amassed assets over $546.33 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendSmall cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.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 0.92%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector--about 21.30% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Credo Technology Group Holdi (CRDO) accounts for about 0.96% of total assets, followed by Exelixis Inc (EXEL) and Bath + Body Works Inc (BBWI).The top 10 holdings account for about 7.45% of total assets under management.Performance and RiskJHSC seeks to match the performance of the JOHN HANCOCK DIMENSIONAL SMALL CAP INDEX before fees and expenses. 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.The ETF has added about 4.49% so far this year and is up roughly 17.95% in the last one year (as of 02/07/2025). In the past 52-week period, it has traded between $35.59 and $43.65.The ETF has a beta of 1.13 and standard deviation of 20.26% for the trailing three-year period. With about 257 holdings, it effectively diversifies company-specific risk.AlternativesJohn Hancock Multifactor Small 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, JHSC is a reasonable option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $74.86 billion in assets, iShares Core S&P Small-Cap ETF has $89.73 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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 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 Bath & Body Works, Inc. (BBWI): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): 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