John Hancock Adds to Schwab Commission-Free ETF Platform

Markets ETF Trends

John Hancock added five smart beta sector exchange traded funds to Charles Scwhab’s Schwab ETF OneSource platform, the brokerage industry’s largest commission-free ETF offering.

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With the addition of the five John Hancock sector funds, all of the Boston-based issuer’s ETFs are available on Schwab ETF OneSource.

In March, John Hancock added five new sector-specific ETFs backed by Dimensional Fund Advisors’ research-based factor investing.

Those new funds include:

  • John Hancock Multifactor Consumer Staples ETF (NYSEArca: JHMS)
  • John Hancock Multifactor Energy ETF (NYSEArca: JHME)
  • John Hancock Multifactor Industrials ETF (NYSEArca: JHMI)
  • John Hancock Multifactor Materials ETF (NYSEArca: JHMA)
  • John Hancock Multifactor Utilities ETF (NYSEArca: JHMU)

The underlying indices adjust securities by relative price and profitability. The smart-beta indices may overweight stocks with lower relative prices and underweight names with higher relative prices. The index can also adjust for profitability by overweighting stocks with higher profitability and underweighting those with lower profitability.

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John Hancock currently offers 11 ETFs.

“Schwab ETF OneSource was launched in February of 2013, and currently offers 232 ETFs covering 69 Morningstar categories,” according to a statement.

SEE MORE: Smart-Beta ETFs Backed by Financial Science

Other Hancock ETFs include the the John Hancock Multifactor Large Cap ETF (NYSEArca: JHML), John Hancock Multifactor Mid Cap ETF (NYSEArca: JHMM), John Hancock Multifactor Consumer Discretionary ETF (NYSEArca: JHMC), John Hancock Multifactor Financials ETF (NYSEArca: JHMF), John Hancock Multifactor Healthcare ETF (NYSEArca: JHMH) and John Hancock Multifactor Technology ETF (NYSEArca: JHMT).

Indexes used by Hancock ETFs use market-capitalization adjustments where it increases the weights of smaller companies within the eligible universe and decreases the weights of larger names. The weighting methodology suggests that the ETFs may follow a more equal-weight tilt with greater exposure to smaller companies than traditional market-cap weighted index funds.

This article was provided by our partners at ETFTrends.