JHancock Disciplined Value Select ETF Stock Price, News & Analysis

John Hancock Disciplined Value Select ETF (JDVL) is an actively managed exchange-traded fund listed on NYSE Arca. According to Manulife John Hancock Investments, the fund is described as a concentrated U.S. value portfolio and is the second actively managed ETF subadvised by the team at Boston Partners. The ETF is part of the John Hancock Investments ETF suite, which includes strategies across U.S. and international equity, preferred income, mortgage-backed securities, and corporate and municipal bonds.

Investment objective and strategy

The sponsor states that John Hancock Disciplined Value Select ETF seeks long-term capital growth. The ETF is subadvised by Boston Partners, a value equity manager that applies an investment approach combining attractive valuation characteristics with strong business fundamentals and positive business momentum in every portfolio. The ETF follows the same philosophy and process that Boston Partners has applied in the mutual fund space for the disciplined value suite of products.

The press release explains that the key difference for John Hancock Disciplined Value Select ETF is the "select" aspect. While the related John Hancock Disciplined Value mutual fund will typically hold 70 to 100 securities, John Hancock Disciplined Value Select ETF is described as a more concentrated portfolio of the subadvisor's highest-conviction ideas, typically around 35 to 40 names. Shares of the ETF are bought and sold on the secondary market at market price, not net asset value (NAV), through a broker-dealer, and are not redeemable with the ETF other than in creation unit aggregations.

Role within Manulife John Hancock Investments

Manulife John Hancock Investments notes that the launch of John Hancock Disciplined Value Select ETF expands its ETF lineup and reflects its multimanager approach. The firm states that it serves investors through a combination of in-house investment capabilities and a network of unaffiliated asset managers, supported by oversight. Within this context, Boston Partners serves as the subadvisor for John Hancock Disciplined Value Select ETF, applying its value equity discipline within a concentrated U.S. value portfolio.

Boston Partners subadvisory role

Boston Partners is described as a value equity manager with an approach that has been applied for more than 30 years by an experienced and long-tenured team across economic cycles, market capitalizations, and geographies. The firm indicates that its process emphasizes attractive valuation, strong business fundamentals, and positive business momentum. For John Hancock Disciplined Value Select ETF, the subadvisor applies this philosophy to a select group of holdings that represent its highest-conviction ideas within the disciplined value framework.

Key structural features and risks

The press release highlights several risk considerations for John Hancock Disciplined Value Select ETF. It notes that value stocks may decline in price and that large company stocks could fall out of favor. It also states that the stock prices of midsize and small companies can change more frequently and dramatically than those of large companies. Liquidity risk is also mentioned, including the possibility that securities or derivative positions may be difficult to sell at a price approximating their value, particularly when trading volume is reduced or markets are volatile.

The sponsor further explains that ETF shares may trade at a premium or discount to their NAV in the secondary market, and that these variations may be greater when markets are volatile or subject to unusual conditions. There is no assurance that active trading markets for the shares will develop or be maintained by market makers or authorized participants. The fund literature directs investors to the prospectus and summary prospectus for additional information on objectives, risks, charges, and expenses.

ETF structure versus mutual funds

The press release contrasts ETFs and mutual funds in general terms. It notes that ETFs trade on major stock exchanges throughout the day, with prices that fluctuate like stocks. It also states that ETFs generally have lower operating expenses, no investment minimums, are tax efficient, have no sales loads, and have brokerage commissions. By comparison, mutual funds trade at closing NAV once a day after markets close, may have investment minimums, can be less tax efficient than ETFs, and many mutual funds have sales charges but no brokerage commissions. These points are presented as general characteristics of the two structures rather than as specific performance claims for John Hancock Disciplined Value Select ETF.

Distributor and related parties

According to the press release, John Hancock ETFs are distributed in the United States by Foreside Fund Services, LLC and are subadvised by Boston Partners, Dimensional Fund Advisors LP, Marathon Asset Management, or Manulife Investment Management (US) LLC. Foreside is stated to be not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC, Boston Partners, Dimensional Fund Advisors LP, or Marathon Asset Management. John Hancock Investment Management Distributors LLC is identified as a member of FINRA and SIPC.

Disclosures and investor considerations

The sponsor emphasizes that a fund's investment objectives, risks, charges, and expenses should be considered carefully before investing, and that the prospectus and summary prospectus contain this and other important information about the fund. The press release clarifies that it is not an offer to sell the ETF securities and is not soliciting an offer to buy them in any state where such offer or sale is not permitted. It also includes standard disclosures that shares are not insured by the FDIC, may lose value, are not bank guaranteed, and are not insured by any government agency.

Investors researching John Hancock Disciplined Value Select ETF (JDVL) can use this information as a starting point and are directed by the sponsor to review the fund's official prospectus and related documents for a fuller understanding of the ETF's strategy, risks, and costs.