This $1.5B Mid-Cap ETF Beat Traditional Indexing by 11 Points

"JHMM tracks the John Hancock Dimensional Mid Cap Index, which includes the 301st through 900th largest U.S. companies by market cap. Rather than weighting purely by size, the index adjusts positions based on three characteristics: smaller market cap within the mid-cap range, attractive price-to-book ratios, and strong operating profit margins. This generates a portfolio remarkably similar to traditional mid-cap indexes with subtle differences. The fund holds 94% of the same stocks as the Russell Midcap Index with just 31% active share, pursuing factors cautiously."

"JHMM's factor approach has delivered meaningful outperformance over the long term, with the fund beating traditional mid-cap indexing by 11 percentage points over the past decade. This advantage stems from the fund's emphasis on profitable, attractively valued companies within the mid-cap space, a strategy that has proven resilient across different market environments including the recent one-year period. The fund operates with exceptional efficiency for a factor-tilted strategy."

John Hancock Multifactor Mid Cap ETF (JHMM) tracks the John Hancock Dimensional Mid Cap Index, covering the 301st through 900th largest U.S. companies. The index tilts weights toward smaller mid-cap stocks, attractive price-to-book ratios, and stronger operating profit margins. The fund overlaps heavily with the Russell Midcap Index, holding 94% of the same stocks and about 31% active share, while limiting any single position to under 1% of assets. Sector exposures include industrials, financials, technology, and healthcare with sector neutrality. JHMM has outperformed traditional mid-cap indexing by 11 percentage points over the past decade, charges a 0.41% expense ratio, and reports roughly 12% annual turnover.

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