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John Hancock Investments launches five new multifactor sector ETFs


John Hancock Investments has expanded its exchange-traded fund (ETF) product lineup by launching five new sector multifactor ETFs. 

As with the six ETFs that John Hancock Investments launched in September 2015, Dimensional Fund Advisors LP – a specialist in strategic beta investing – has been selected to design the underlying indexes for the five new sector funds, based on Dimensional's time-tested factor-based approach.                                                                      

Now trading on the NYSE Arca, the new funds are: John Hancock Multifactor Consumer Staples ETF (JHMS); John Hancock Multifactor Energy ETF (JHME); John Hancock Multifactor Industrials ETF (JHMI); John Hancock Multifactor Materials ETF (JHMA); and John Hancock Multifactor Utilities ETF (JHMU).

"We're pleased to be able to bring Dimensional's proven multifactor approach to a broader set of sector ETFs," says Andrew G Arnott, president and CEO of John Hancock Investments. "Investors are increasingly looking for a better way to achieve equity market beta than relying solely on traditional capitalisation-weighted indexes, and our lineup of John Hancock Multifactor ETFs now provides a broad range of tools for doing just that."

Dimensional started applying the concept of multifactor investing more than 30 years ago, and today the firm is one of the most respected managers in the industry. Dimensional's approach is rooted in decades of academic research into the factors that drive expected returns, along with a record of delivering results to investors. John Hancock Investments has had a relationship with Dimensional and its portfolio management teams since 2006, resulting in strategies being offered as both individual John Hancock mutual funds and through John Hancock asset allocation portfolios.

As disclosed in the registration statements, each John Hancock multifactor sector ETF will maintain an objective of seeking to provide investment results that closely correspond, before fees and expenses, to the performance of its underlying index. While the ETFs are passively managed, the indexes will embody aspects of Dimensional's multifactor investment philosophy and approach to portfolio construction, along with rules aimed at minimizing unnecessary or costly turnover.

John Hancock Investments has also embarked on a robust advertising campaign in support of John Hancock Multifactor ETFs. A national advertising campaign currently under way includes TV, digital, and print ads running in a wide range of trade publications and financial news properties.

ETF shares are not individually redeemable and are issued and redeemed by an ETF at their net asset value (NAV) only in large, ​specified blocks of Shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.

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