John Hancock Multifactor Emerging Markets ETF (JHEM US) - Portfolio Construction Methodology

Core Insights - The John Hancock Dimensional Emerging Markets Index targets a broad universe of large- and mid-cap emerging market stocks, applying rules-based tilts towards smaller market caps, lower relative price (e.g., lower P/B), and higher profitability [1] Group 1: Portfolio Construction Methodology - The index requires securities to be within the top 80% of each eligible country's market cap and the top 85% across all eligible countries, with adjustments for float and country-level grouping [1] - Within each country, stocks are divided into two size bands to increase weights on smaller stocks, with additional multipliers adjusting weights based on relative price and profitability [1] - REITs and REIT-like entities are categorized in separate factor buckets [1] - A single issuer cap of 4% is enforced at reconstitution, with a reduction if a securities-industry issuer exceeds 4.75% between reconstitutions [1] - The index undergoes semi-annual reconstitution and rebalancing [1]