Manulife Investment Management and John Hancock Investment Management have expanded their ETF lineup with the launch of a new hedged equity strategy. The John Hancock Hedged Equity ETF (JHDG) debuted on the NYSE Arca on April 8.
The fund combines a high-conviction equity sleeve with a dynamic options overlay. This marks an evolution of a strategy the firm has run internally since 2020.
According to a press release, the new ETF builds on a tested strategy the firm has managed since 2020. By weaving together a high-conviction equity portfolio and an actively managed options overlay, the fund aims to catch the market’s tailwinds while smoothing out the stomach-churning drops of volatility.
“Advisors are increasingly adopting active ETFs as part of more efficient, outcome‑oriented portfolio construction seeking potential benefits such as cost efficiency, tax efficiency, and diversification,” said Kristie Feinberg, president and CEO of Manulife John Hancock Investments. “This momentum underscores the meaningful role active ETFs can play in helping clients achieve their long‑term savings and investment goals.”
This launch brings the firm’s total ETFs to 19 funds with nearly $13 billion in assets under management.
See More: John Hancock Debuts New Active Value ETF
Active vs. Passive Hedging
The primary differentiator for this strategy is its discretionary mandate. Many “buffered” or hedged ETFs in the current market follow a rigid, rules-based schedule. They typically reset options on a monthly or quarterly basis regardless of market conditions. However, this fund allows managers to adjust the hedge in real-time.
Two core components define the portfolio’s structure. The equity sleeve consists of a concentrated portfolio of stocks selected through fundamental research. Complementing this is the options sleeve, an active overlay designed to mitigate downside risk. Managers can tighten or loosen the hedge in response to changes in implied volatility and broader macro and technical conditions.
Together, these elements aim to deliver a smoother return profile for investors seeking equity exposure while remaining cautious of the sharp drawdowns often associated with late-cycle markets.
Expanding the Active Footprint
Despite offering several funds that track smart beta indices, John Hancock remains primarily an active manager and continues to expand its capabilities in this area.
Among them are the John Hancock Disciplined Value Select ETF (JDVL ), an actively managed U.S. equity strategy subadvised by Boston Partners that invests in a concentrated portfolio of 35 to 40 value stocks, and the John Hancock Global Senior Loan ETF (JHLN ) which targets income through a global senior loan strategy. With the exception of the John Hancock Core Bond ETF (JHCR ) its five largest ETFs are multifactor strategies that are passively managed and track indices developed by Dimensional.
The firm’s largest ETF, the John Hancock Multifactor Mid Cap ETF (JHMM ), leads the lineup with approximately $4.9 billion in AUM.
The move into hedged equity via JHDG is a response to the volatility tax currently weighing on traditional 60/40 portfolios. By wrapping an institutional hedging strategy into an ETF, Manulife is targeting advisors who need to stay invested to meet growth targets but lack the resources to manage complex options strategies themselves.
In a crowded ETF market, the firm is banking on the idea that active management of risk — not just stock picking — will be the primary draw for capital in 2026.
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