John Hancock Mortgage-Backed Securities ETF underperformed its benchmark, the Bloomberg U.S. MBS Index, during the first quarter period. In March, bond yields soared and prices fell in response to escalating conflict in the Middle East and stoking concerns about rising inflation. Investors began pricing in an interest rate increase before year-end as geopolitical uncertainty led to dramatic changes in expectations for Federal Reserve interest rate policy.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| WJF William J. Fennie III FIDELITY D & D BAN Corp. Inc. | 414,145 | $9.04M | $9.06M | $18,988.85 | 0.21% |
| PAP Penny A. Phillips Journey Strategic Wealth LLC | 524,652 | $11.5M | $11.49M | -$7,777.22 | -0.07% |
| SO Sean O'Reilly Ffg Retirement Advisors LLC | 321,016 | $7.02M | $7.01M | -$9,074.43 | -0.13% |
Christopher C. Powers Farther Finance Advisors, LLC | 250 | $5,533 | $5,460 | -$73 | -1.32% |
Michael G. Hansen IAMS WEALTH MANAGEMENT, LLC | 147,419 | $3.26M | $3.22M | -$36,614.35 | -1.12% |
| ARCA Exchange | US Country |
The described fund is a specialized investment vehicle focusing primarily on investing in mortgage-backed securities. It adheres to a strategy that allocates at least 80% of its net assets, along with any funds borrowed for investment purposes, into mortgage-backed securities. These investments span across securities issued or guaranteed by U.S. governmental entities as well as those issued privately. The fund's investment policy allows for flexibility in diversifying its portfolio, with the capability to invest up to 20% of its net assets in non-mortgage-backed securities, including other asset-backed securities, Collateralized Loan Obligations (CLOs), and maintaining liquidity through cash and cash equivalents.
The fund primarily invests in mortgage-backed securities that are either issued or guaranteed by U.S. governmental entities, or are privately issued. This forms the core of the fund's investment strategy, aiming to capitalize on the returns these securities can offer under normal market conditions.
Although the fund is focused on mortgage-backed securities, it allocates up to 20% of its net assets to invest in a range of non-mortgage-backed securities. This includes other types of asset-backed securities and collateralized loan obligations (CLOs), diversifying its investment portfolio beyond its primary focus.
To maintain liquidity and manage investment risks, the fund invests a portion of its portfolio in cash and cash equivalents. This strategic allocation helps in mitigating liquidity risks and ensures the fund has the flexibility to react to market opportunities or obligations as they arise.