John Hancock Corporate Bond ETF underperformed its benchmark, the Bloomberg U.S. Corporate Bond Index. Sector allocation and yield curve positioning weighed on performance while individual security selection produced mixed results. Given the high degree of geopolitical uncertainty, we continue to take a long-term view in managing the fund, avoiding any reactionary moves to current events.
U.S. investment-grade corporate bonds gained in the third quarter. The fund outperformed its benchmark, the Bloomberg U.S. Corporate Bond Index. Investment-grade corporate bonds outperformed the broader bond market, benefiting from a risk-on market environment.
U.S. investment-grade corporate bonds declined in Q4 2024 despite Fed rate cuts, driven by strong economic data and geopolitical factors. The fund outperformed the Bloomberg U.S. Corporate Bond Index due to superior individual security selection, though suboptimal maturity structure detracted from performance. Key contributors to outperformance included bonds from Ally Financial and Viatris, while Microsoft and Tapestry detracted.