John Hancock Expands Active ETF Offerings with New Bond Funds

John Hancock Investment Management Expands ETF Offering

John Hancock Investment Management, part of the Manulife Wealth and Asset Management family, has announced an exciting addition to its suite of actively managed exchange-traded funds (ETFs). The launch of the John Hancock Core Bond ETF and the John Hancock Core Plus Bond ETF marks a significant expansion in their offerings. These newly introduced ETFs are designed to cater to the evolving needs of investors seeking to diversify their income sources while managing potential market volatility.

As per Kristie Feinberg, President and CEO of John Hancock Investment Management, this strategic move aims to leverage the profound expertise of the Manulife Investment Management team. The newly launched ETFs will utilize a similar investment strategy and philosophy that has proven successful in their other financial instruments.

Investment Objectives

The John Hancock Core Bond ETF (NYSE Arca JHCR) is tailored to seek a high level of current income. Its primary focus is on capital preservation and maintaining liquidity, ensuring that investors can feel secure in their investments. On the other hand, the John Hancock Core Plus Bond ETF (NYSE Arca JHCP) aims for a high level of current income while maintaining a prudent approach to investment risk.

Both ETFs are actively managed by the U.S. Core and Core-Plus Fixed Income team within Manulife Investment Management, a group that possesses nearly 50 years of combined experience in managing similar U.S. strategies. Key personnel involved in managing these funds include Jeffrey N. Given, CFA, and Howard C. Greene, CFA, who act as co-heads of the U.S. Core and Core-Plus team, supported by Connor Minnaar, CFA, and Pranay Sonalkar, CFA.

Market Outlook

Looking ahead to the coming year, the investment team expresses optimism regarding various market dynamics expected to impact investor portfolios. Jeff Given commented specifically on the recent cooling of inflation rates and a balanced labor market which may contribute to reduced inflationary pressures as we approach 2025. This offers a silver lining for investors, potentially easing their concerns moving forward.

The focus remains on comprehensive security analysis to position portfolios effectively through various market cycles. The strategy aims to identify both opportunities and risks, with a clear intent on achieving optimal income outcomes within their investment frameworks.

ETF Performance and Portfolio Comparison

With the addition of these two ETFs, John Hancock Investment Management now boasts a total of 16 ETF funds, amassing over $7.3 billion in assets under management. The diverse product lineup includes preferred income funds, mortgage-backed securities, corporate bonds, municipal bonds, and both U.S. and international equity portfolios, demonstrating the firm’s commitment to meeting a wide range of investor requirements.

The expansion of the Bond ETF offerings indicates a conscious effort to address investor needs amidst a shifting economic landscape. It’s crucial for investors to consider their strategies carefully, given the potential risks involved with fixed-income investments. As stated in the official release, investors should be aware that interest-rate and credit risks could significantly affect the value of their investments.

Conclusion

The launch of John Hancock's Core Bond and Core Plus Bond ETFs underscores the firm’s dedication to providing investors with comprehensive options aimed at income generation and risk management. As the financial landscape continues to fluctuate, both seasoned and new investors can look to these products as part of their broader strategies. With professional management and a clear focus on income and risk mitigation, these ETFs are set to play a critical role in the investment portfolios of many in the year ahead.