John Hancock Multifactor Health Care ETF (JHMH)

Overview

The fund presents a focused investment avenue for individuals and institutions interested in tapping into the healthcare sector, specifically within the United States. By committing at least 80% of its net assets, along with any potential borrowings intended for investment purposes, the fund primarily targets securities that are integral components of its designated index. This index is meticulously curated to include only securities belonging to the healthcare sector, but with a unique filtering criterion: investment is directed towards companies with market capitalizations surpassing that of the 1001st largest U.S. company at the time of the fund's reconstitution. This strategy not only emphasizes the fund's inclination towards substantial and possibly more stable healthcare entities but also highlights its non-diversified nature, focusing its investments more narrowly than broader market funds.

Products and Services

The fund offers a very specific investment product characterized by the following:

• Healthcare Sector-Focused Index Investment:
  

  This product enables investors to directly engage with the healthcare sector, one of the most dynamic and essential segments of the U.S. economy. By investing in securities that make up the fund's index, investors are provided with an opportunity to participate in the growth and profitability of larger healthcare companies in the U.S. This approach is especially designed for those looking to specifically bolster their portfolio with healthcare investments, reflecting the sector's unique attributes and inherent potential for growth and innovation.

• Strategic Market Capitalization Criteria:
  

  An innovative aspect of the fund’s investment strategy is its focus on companies whose market capitalizations exceed that of the 1001st largest U.S. company at the time of the fund's reconstitution. This criterion aims to filter and identify substantial investments within the healthcare sector, potentially leading to a portfolio that benefits from both the growth prospects and the stability associated with larger companies. It reflects a deliberate choice to veer away from smaller, perhaps more volatile investments, towards entities with significant standing in the healthcare market.

• Non-Diversified Fund Structure:
  

  Unique to this fund is its non-diversified status, meaning it focuses its investments more narrowly than diversified funds. This strategy may involve higher risks, as the fund's performance is more closely tied to the specific securities selected. However, for investors with a keen interest in the healthcare sector and a tolerance for such risk, this approach allows for potentially greater rewards directly linked to the fund’s specific focus area. It underscores a targeted investment philosophy, aiming to capitalize on the nuanced dynamics of the healthcare sector.