The John Hancock Multifactor Mid Cap ETF (JHMM) was launched on 09/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $6.11 billion, this makes it one of the larger ETFs in the Style Box - Mid Cap Blend. JHMM is managed by John Hancock. JHMM seeks to match the performance of the John Hancock Dimensional Mid Cap Index before fees and expenses.
The John Hancock Dimensional Mid Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are between the 200th and 951st largest U.S. company.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.41% for this ETF, which makes it on par with most peer products in the space.
JHMM's 12-month trailing dividend yield is 0.87%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector - about 19.4% of the portfolio. Financials and Information Technology round out the top three.
When you look at individual holdings, Flex Ltd (FLEX) accounts for about 0.73% of the fund's total assets, followed by Comfort Systems Usa Inc (FIX) and Hewlett Packard Enterprise (HPE).
Its top 10 holdings account for approximately 5.36% of JHMM's total assets under management.
Performance and Risk
So far this year, JHMM has added about 16.03%, and is up roughly 18.9% in the last one year (as of 08/25/2026). During this past 52-week period, the fund has traded between $62.01 and $77.35.
The ETF has a beta of 0.99 and standard deviation of 16.07% for the trailing three-year period, making it a medium risk choice in the space. With about 665 holdings, it effectively diversifies company-specific risk .
Alternatives
John Hancock Multifactor Mid Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Morningstar Mid-Cap ETF (VO) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH) tracks S&P MidCap 400 Index. Vanguard Morningstar Mid-Cap ETF has $109.07 billion in assets, iShares Core S&P Mid-Cap ETF has $124.96 billion. VO has an expense ratio of 0.03% and IJH changes 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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John Hancock Multifactor Mid Cap ETF (JHMM): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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