On Wednesday, John Hancock Investment Management bolstered its ETF selection with two new bond strategies.
“We’re excited to expand our active ETFs and leverage the expertise of the Manulife IM (US) team. They will apply a similar investment process and philosophy to these ETFs as they do with their other strategies,” noted Kristie Feinberg, president and CEO of John Hancock Investment Management. “We believe investors are still seeking diverse income sources and will continue to find ways to mitigate potential volatility and prepare for interest rate changes in the coming year.”
An Active Core Strategy
First up is the John Hancock Core Bond ETF (JHCR). As the fund’s title implies, it offers the John Hancock take on a core bond strategy.
Following waivers and reimbursements, JHCR has a net expense ratio of 0.29%. The fund provides access to an actively managed portfolio of investment-grade bonds.
Generally speaking, JHCR seeks to preserve an average credit rating of A- or above for its portfolio. This portfolio can include corporate bonds, mortgage-backed securities, and floating rate securities, among others.
Core Plus Perspective
Meanwhile, the John Hancock Core Plus Bond ETF (JHCP) provides a new option for core plus bond strategies. This fund is also actively managed, much like JHCR.
After reimbursements and waivers, JHCP’s net expense ratio sits at 36 basis points. The fund looks to provide a core plus portfolio strategy to generate income.
At least 80% of JHCP’s assets sit among a diversified selection of bonds. This includes corporate bonds, convertible securities, and U.S.-dollar-denominated foreign bonds, among many others. However, the fund prospectus notes that JHCP may invest a significant amount of assets toward mortgage-backed securities. Additionally, up to 20% of the ETF’s net assets may be invested in junk bonds.
Both funds make investment decisions while keeping sector and industry allocation in consideration. The overall average maturity for JHCR and JHCP will usually stay similar to that of the Agg.
“John Hancock has a strong active management heritage in fixed income,” said Todd Rosenbluth, head of research at VettaFi. “It’s great to see them expand their ETF lineup.”
John Hancock Investment Management has more than 15 different ETFs listed in the United States. As a whole, these funds represent over $7.4 billion in assets under management.
For more information, please visit VettaFi.com | ETF Trends.
