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

Core Viewpoint - The John Hancock Multifactor Small Cap ETF (JHSC) offers broad exposure to the Small Cap Blend segment of the US equity market, with assets exceeding $564.78 million since its launch on November 8, 2017 [1] Group 1: Investment Potential - Small cap companies, defined as those with market capitalizations below $2 billion, present high potential but also come with increased risk [2] - Blend ETFs typically include a mix of growth and value stocks, providing diversified exposure [2] Group 2: Cost Structure - The annual operating expenses for JHSC are 0.42%, which is competitive with most peer products [3] - The ETF has a 12-month trailing dividend yield of 1.07% [3] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation of approximately 22.8% to the Industrials sector, followed by Financials and Consumer Discretionary [4] - Nextracker Inc Cl A (NXT) constitutes about 0.55% of total assets, with the top 10 holdings making up around 5.11% of total assets under management [5] Group 4: Performance Metrics - JHSC aims to match the performance of the JOHN HANCOCK DIMENSIONAL SMALL CAP INDEX, which includes companies smaller than the 750th largest U.S. company, excluding the smallest 4% [6] - The ETF has experienced a loss of about 0.41% year-to-date and a gain of approximately 6.51% over the past year, with a trading range between $32.47 and $43.65 in the last 52 weeks [7] Group 5: Alternatives - JHSC holds a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to the Small Cap Blend market [8] - Other comparable ETFs include the Vanguard Small-Cap ETF (VB) with $63.04 billion in assets and an expense ratio of 0.05%, and the iShares Core S&P Small-Cap ETF (IJR) with $80.38 billion in assets and an expense ratio of 0.06% [9] Group 6: General Insights - Passively managed ETFs like JHSC are increasingly favored by retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]