John Hancock Dynamic Municipal Bond ETF (JHMU)

Overview

The described fund is a financial entity that specializes in investing in municipal bonds, adhering to a precise strategy under normal market conditions. It dedicates at least 80% of its net assets, along with amounts borrowed for investment purposes, to municipal bonds of varying maturities. The primary focus is on investment-grade bonds at the time of purchase, providing a level of safety and reliability to its investments. However, the fund also accommodates a degree of risk by allocating up to 20% of its net assets to non-investment grade bonds, specifically those rated BB or lower. This inclusion of lower-grade bonds allows for potential higher returns, amidst the generally safe investment approach centered around municipal bonds.

Products and Services

• Municipal Bonds Investment

  This service focuses on investing in municipal bonds, which are debt securities issued by local government entities. The fund dedicates at least 80% of its net assets to these bonds, indicating a strong commitment to the municipal bond market. This approach tends to offer tax-exempt income and is designed to appeal to investors seeking federally tax-exempt income, while also maintaining a level of stability and risk management through primarily choosing investment-grade bonds.

• Investment in Non-Investment Grade Bonds

  Alongside the safer investment-grade municipal bonds, the fund allows for up to 20% of its assets to be allocated towards non-investment grade bonds. These are bonds rated BB or lower by recognized rating agencies or equivalent unrated securities, indicating a higher risk but also the potential for higher returns. It's a strategic inclusion aimed at diversifying the investment pool and potentially enhancing the fund's overall yield, catering to investors with a higher risk tolerance.