John Hancock Investment Management Expands Its ETF Offerings
John Hancock Investment Management, a division of Manulife Wealth and Asset Management, has unveiled two new exciting bond exchange-traded funds (ETFs): the John Hancock Core Bond ETF and the John Hancock Core Plus Bond ETF. These newly launched funds are actively managed and subadvised by Manulife Investment Management (US) LLC, ensuring that investors benefit from deep expertise in the bond market.
Objectives of the New Bond ETFs
The primary goal of the John Hancock Core Bond ETF (NYSE Arca: JHCR) is to provide a high level of current income while preserving capital and maintaining liquidity. This approach is designed to offer investors a stable option for their investment needs. On the other hand, the John Hancock Core Plus Bond ETF (NYSE Arca: JHCP) aims for a similar income level but with a slightly higher risk profile, supporting the pursuit of returns.
Expert Management Team Behind the ETFs
Both ETFs will be managed by a seasoned team focused on U.S. core and core-plus fixed income strategies. Notable members include Jeff Given, CFA, and Howard Greene, CFA, who co-head the team, alongside Connor Minnaar, CFA, and Pranay Sonalkar, CFA. Collectively, they bring nearly five decades of extensive experience in managing these strategies successfully.
Market Outlook and Investment Philosophy
According to Kristie Feinberg, President and CEO of John Hancock Investment Management, the continued evolution of market conditions poses both challenges and opportunities for investors. She emphasizes the importance of diversifying income sources might be more crucial than ever to mitigate volatility and deal with interest rate fluctuations. As inflation shows signs of moderation and the labor market balances, investors may face a more stable economic environment into the future.
Understanding the Risks
However, investments in these ETFs do not come without risks. It's essential for investors to recognize that fixed-income investments can be vulnerable to changes in interest rates, and the value of bonds typically declines as rates rise. Additionally, investing in lower-rated securities can expose portfolios to elevated risks of default, especially in less stable markets. These factors underscore the need for careful evaluation and management of investment portfolios.
Current State of John Hancock ETFs
With the introduction of these two new funds, John Hancock Investment Management now offers a total of 16 ETFs, with an impressive asset management portfolio exceeding $7.3 billion. These ETFs encompass various investment strategies, including preferred income, mortgage-backed securities, corporate bonds, and U.S. as well as international equity portfolios.
How to Get Further Information
For individuals interested in learning more about these funds, each ETF has an associated prospectus outlining key investment objectives, associated risks, fees, and other vital information. It’s essential for potential investors to review these documents thoroughly to get a comprehensive understanding of what to expect from their investments. Individuals can easily obtain the prospectus or summary prospectus through financial professionals or by reaching out directly to John Hancock's customer service.
Frequently Asked Questions
What is the primary focus of the John Hancock Core Bond ETF?
The John Hancock Core Bond ETF primarily aims to provide a high level of current income while preserving capital and maintaining liquidity.
Who manages the newly launched John Hancock ETFs?
The new ETFs are managed by a highly experienced team at Manulife Investment Management, including co-heads Jeff Given and Howard Greene.
What risks are associated with investing in these bond ETFs?
Investing in bond ETFs includes risks such as interest rate changes, potential loss of principal, and credit risk, especially when dealing with lower-rated securities.
How many ETFs does John Hancock Investment Management currently offer?
With the latest launch, John Hancock Investment Management offers 16 ETFs, with assets under management exceeding $7.3 billion.
How can investors request more information about these funds?
Investors can request the prospectus or summary prospectus from financial professionals or by contacting John Hancock's customer service directly.
