John Hancock Investment Management has launched a new actively managed ETF targeting dividend-paying stocks of companies located outside of the US.
John Hancock has launched an actively managed ETF focused on non-US dividend-paying equities.
The John Hancock International High Dividend ETF (JHID US) has been listed on NYSE Arca with an expense ratio of 0.46%.
The fund is sub-advised by Manulife Investment Management with day-to-day operations headed up by Geoff Kelley, Global Head of Strategic Asset Allocation and Systematic Equity.
The ETF seeks to generate a high level of current income with a secondary consideration for the long-term growth of capital.
It aims to achieve these objectives by investing in large and mid-cap companies that are incorporated in, or have their primary listing exchange in, developed market countries excluding the US. Eligible types of securities include common and preferred stocks, convertible securities, rights, warrants, and real estate investment trusts (REITs).
Utilizing a proprietary systematic approach, Manulife screens the universe for securities that have high and persistent dividends or dividends that are expected to grow over time. Such screening criteria may include quality factors, dividend yields, dividend growth, dividend persistence, and dividend payout.
Following this screening, the portfolio is then optimized based on several factors including beta and dividend yield at the security level, as well as turnover, position size, sector, and country exposure at the portfolio level.
John Hancock rolled out a US equity ETF of the same strategy, also managed by Manulife, in October 2022. The John Hancock US High Dividend ETF (JHDV US) is listed on NYSE Arca with an expense ratio of 0.34%.
Steve Deroian, co-Head of Retail Product at John Hancock Investment Management, commented: “We’re pleased to expand our ETF suite, and once again tap the expertise of our affiliated asset manager, Manulife Investment Management, and its systematic equity portfolio management team. We’re aware of the hurdles investors faced this year with unique market conditions persisting and overall returns being challenged. We anticipate demand for equity income to continue into 2023 and beyond as investors refocus their portfolios.”