John Hancock Launches 5 Sector ETFs
Boston-based John Hancock Investments has introduced five exchange-traded funds, bringing its total ETF lineup to 11 products.
The new funds, which now trade on the New York Stock Exchange, are: the John Hancock Multifactor Consumer Staples ETF, the John Hancock Multifactor Energy ETF, the John Hancock Multifactor Industrials ETF, the John Hancock Multifactor Materials ETF and the John Hancock Multifactor Utilities ETF.
The new funds were designed by Austin, Texas-based Dimensional Fund Advisors and will be managed using Dimensional’s four-factor, fundamental approach.
“We’re pleased to be able to bring Dimensional’s proven multifactor approach to a broader set of sector ETFs,” said Andrew G. Arnott, president and CEO of John Hancock Investments, in a statement. “Investors are increasingly looking for a better way to achieve equity market beta than relying solely on traditional capitalization-weighted indexes, and our lineup of John Hancock Multifactor ETFs now provides a broad range of tools for doing just that.”
Dimensional’s research-driven approach leads to portfolio composition that resembles many smart beta indexes and products, but arrives at its destination differently. The firm emphasizes profitability, company size and price within the context of the overall market in its four-factor approach, which is intended to limit style drift.
The new funds continue the 10-year partnership between John Hancock and Dimensional Fund Advisors.
In coordination with the launch of the new ETFs, John Hancock is engaging in a multi-channel marketing campaign.
BlackRock Unveils Junk Bond ETF Ex-Energy
New York-based BlackRock has filed for a new ETF that will invest in all areas of the junk bond market except the energy sector.
The iShares iBoxx $ High Yield ex-Energy Corporate Bond ETF will track an index comprising low-rated corporate debt and excluding bond issues by oil and gas producers and their suppliers.
The ETF will roll out at a time when energy prices have slowly rebounded from dramatic lows earlier this year, which put pressure on energy sector debt.
Plans for the new ETF were revealed in a March filing with the SEC.
The fund will attempt to track the performance of the Markit iBoxx USD Liquid High Yield ex-Oil and Gas Index.
Deutsche Announces Fixed-Income Funds
New York-based Deutsche Asset & Wealth Management has announced the offering of two conservative fixed-income funds designed to behave the same way as money market mutual funds.
The Deutsche Limited Maturity Quality Income Fund will invest mainly in high-quality, short-maturity U.S. fixed-income.
The Deutsche Ultra-Short Investment Grade Fund will invest in investment-grade U.S. dollar-denominated fixed-income.
Both funds will attempt to provide investors with capital preservation, liquidity and consistent income and will be available in institutional and investment share classes.
Geoffrey Gibbs, head of the firm’s U.S. Liquidity Management Group, will serve as lead portfolio manager for both funds.
Capital One Offers Free Fund Evaluator
McLean, Va.-based Capital One has launched a free web application that will allow investors to evaluate and compare investment funds.
The Fund Evaluator is designed to help investors review mutual fund and ETF data and identify comparable or alternative investments that might better align with their individual goals.
The Fund Evaluator gives investors a simple platform to compare funds’ recent performance, expenses, Morningstar ratings and net returns.
The company cites its 2016 “Financial Freedom Survey,” in which two-thirds of Americans cited technological tools as important aids in retirement planning and management, as rationale for its offering.
Diamond Hill Introduces High Yield Strategy
Columbus, Ohio-based Diamond Hill Capital Management has announced the launch of the Diamond Hill High Yield fund.
The fund will invest primarily in below-investment-grade corporate bonds with an objective of achieving high current income with the opportunity for capital appreciation.
The fund’s goals are to generate returns of 4% plus inflation over rolling five-year periods while outperforming its peers.
The strategy is currently available through Pershing, Schwab and NFS platforms.
The firm also announced that the Diamond Hill Strategic Income Fund will be renamed the Diamond Hill Corporate Credit Fund to “better reflect its investment strategy and objectives.”
Vanguard Offers Core Bond Fund
Valley Forge, Pa.-based Vanguard has introduced the Vanguard Core Bond Fund, an actively managed fixed income offering.
The fund will invest in high-quality bonds across the investment-grade market, limiting its exposure to non-investment-grade bonds to 5% and aim for a portfolio with an intermediate-term average maturity.
Using a risk-controlled approach, the fund will seek to outperform the broad U.S. fixed-income market through disciplined security selection, sector allocation and duration decisions.
The fund is available in an investor share class with a minimum investment of $3,000 at a cost of 25 basis points, and in an Admiral share class with a minimum investment of $50,000 at a cost of 15 basis points.