Core Insights - Wall Street has shown moderate performance in early 2026, with the S&P 500 gaining 1.1%, Dow Jones up 3.6%, and Nasdaq Composite down 0.9%, while small-cap index Russell 2000 has surged 6.5% and State Street SPDR Portfolio S&P 600 Small Cap ETF SPSM has increased by 8.7% [1] Market Performance - The small-cap stocks are outperforming larger peers, indicating a shift in investor preference towards domestic-focused companies amid macroeconomic uncertainties [10] Macro Environment - Key factors influencing market performance include heightened geopolitical tensions, a rebound in the U.S. dollar, fluctuations in precious metals, and the impact of winter storm Fern on natural gas prices [2] Geopolitical Tensions - Increased geopolitical concerns arose from U.S. actions against Venezuela and potential actions regarding Iran, which have contributed to market unease [3][5] U.S. Dollar Dynamics - The U.S. dollar strengthened following the nomination of Kevin Warsh, viewed as a hawkish central banker, benefiting small-cap stocks due to their lower foreign exposure [6] Earnings Outlook - U.S. small-cap earnings are expected to rebound, with the S&P 600 index projected to achieve 12.7% positive earnings growth in 2025, followed by steady growth of 10.7% and 14.7% in 2026 and 2027, respectively [7] Valuation Metrics - The Russell 2000 trades at a trailing P/E of 36.56X and a forward P/E of 23.25X, indicating potential undervaluation compared to the Nasdaq 100's forward P/E of 24.69 [8] Small-Cap ETFs Performance - Notable small-cap ETFs include Invesco S&P SmallCap 600 Revenue ETF (RWJ) up 11.6%, Pacer US Small Cap Cash Cows Growth Leaders ETF (CAFG) up 9.4%, and others showing strong momentum [11]

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]

Core Insights - The John Hancock Multifactor Small Cap ETF (JHSC) offers investors exposure to the Style Box - Small Cap Blend category, having debuted on November 8, 2017 [1] - Smart beta ETFs, like JHSC, aim to outperform traditional market cap weighted indexes by selecting stocks based on specific fundamental characteristics [3][4] - JHSC is managed by John Hancock and has accumulated over $566.07 million in assets, positioning it as an average-sized ETF in its category [5] Fund Details - JHSC seeks to match the performance of the JOHN HANCOCK DIMENSIONAL SMALL CAP INDEX, which includes U.S. companies with market capitalizations smaller than the 750th largest, excluding the smallest 4% [6] - The fund has an annual operating expense ratio of 0.42% and a 12-month trailing dividend yield of 1.06% [7] - The fund's largest sector allocation is in Industrials at approximately 22.8%, followed by Financials and Consumer Discretionary [8] Holdings and Performance - JHSC's top holdings include Nextracker Inc Cl A (0.55% of total assets), Commvault Systems Inc, and Planet Fitness Inc Cl A, with the top 10 holdings accounting for about 5.11% of total assets [9] - As of August 11, 2025, JHSC has experienced a year-to-date loss of -0.01% and a one-year gain of 6.96%, with a trading range between $32.47 and $43.65 over the past 52 weeks [11] Alternatives - Other ETFs in the small-cap space include Vanguard Small-Cap ETF (VB) and iShares Core S&P Small-Cap ETF (IJR), which have significantly larger assets and lower expense ratios of 0.05% and 0.06%, respectively [13]