ETF Research Center

The John Hancock Multifactor Emerging Markets ETF tracks a multi-factor selected and weighted index of large- and midcap stocks from emerging markets.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	John Hancock
Website	www.jhinvestments.com
Inception date	Sep 27, 2018
Assets (mns)	$820
Currency	USD
Expense ratio	55 bp
Distributions	Semi-annual

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Multi-Factor
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	644
Wgt avg mkt cap (mns)	$80,044
Large cap (>$10bn)	72.5%
Mid cap ($2-10bn)	25.9%
Small cap (<$2bn)	0.4%
Developed mkts	7.2%
Emerging mkts	92.8%

TOP TEN HOLDINGS
Total	21.0 %
SAMSUNG ELECTRONICS CO LTD	4.4 %
TENCENT HOLDINGS LTD	3.6 %
TAIWAN SEMICONDUCTOR MANUFAC	3.2 %
ALIBABA GROUP HOLDING LTD. SPONSOR	2.8 %
CHINA CONSTRUCTION BANK-H	1.5 %
CHINA MOBILE LIMITED	1.3 %
PING AN INSURANCE GROUP CO-H	1.1 %
IND & COMM BK OF CHINA - H	1.1 %
VALE SA	1.0 %
GAZPROM OAO-SPON ADR	0.9 %

TOP COUNTRY EXPOSURE
	CHINA	22.6 %
	SOUTH KOREA	13.6 %
	TAIWAN	13.2 %
	INDIA	11.5 %
	BRAZIL	7.8 %
	HONG KONG	6.1 %
	SOUTH AFRICA	5.8 %
	RUSSIA	3.8 %
	MEXICO	2.7 %
	INDONESIA	2.6 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
9.4%	--	--	--	10.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.79	66%
MSCI EAFE	1.09	75%
MSCI Emg. Mkts.	1.01	96%

Technical Indicators
Recent close	$25.69
30d moving avg.	$25.07
Annualized volatility	16.5%
Short interest (ETF)	0.0%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	34
Turnover	0.1%
Bid/Ask (% of price)	0.19%
ADV underlying (mns)	$15,654

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the John Hancock Multifactor Emerging Markets ETF based on the alternatives' overlap in portfolio holdings with JHEM. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

JHEM

Expense:

55 bp

ALTAR Score™:

8.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH JHEM
Ticker	Fund Name	Overlap¹ vs JHEM (%)	Expense ratio (bp)	Savings vs JHEM (bp)	ALTAR Score™ (%)	ALTAR vs JHEM (%)
EEM	iShares MSCI Emerging Markets	68.9	67	-12	8.4	-0.2
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	68.4	65	-10	8.3	-0.3
EEMA	iShares MSCI Emg Mkts Asia	65.7	50	5	8.5	-0.1
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	65.6	30	25	8.4	-0.2
IEMG	iShares Core MSCI Emerging Markets	64.1	14	41	8.5	-0.2
AAXJ	iShares MSCI Asia ex-Japan	60.8	67	-12	8.0	-0.6
SCHE	Schwab Emerging Markets Equity	60.6	13	42	8.6	+0.0
FLAX	Franklin FTSE Asia Ex Japan	59.4	19	36	8.5	-0.1
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	59.0	45	10	9.0	+0.4
XSOE	WisdomTree Emg Mkt ex-SOE	57.3	32	23	6.8	-1.8
PBEE	Invesco PureBeta FTSE Emerging Markets	55.1	14	41	9.1	+0.5
DVEM	WisdomTree Emerging Markets Dividend	55.0	32	23	11.0	+2.4
VWO	Vanguard Emerging Markets	54.3	12	43	8.5	-0.1
SPEM	SPDR Portfolio Emerging Markets	52.3	11	44	8.3	-0.3
PXH	Invesco FTSE-RAFI Emerging Markets	51.7	50	5	12.2	+3.5
EMXC	iShares MSCI Emerging Markets ex China	49.7	49	6	8.5	-0.1
TLTE	FlexShares Mngstr Emerging Markets Factor Tilt	49.5	59	-4	10.3	+1.7
QEMM	SPDR MSCI Emerging Markets Quality Mix	49.2	30	25	9.1	+0.5
KEMX	KraneShares MSCI Emerging Markets EX China Index	48.5	49	6	8.6	-0.1
GMF	SPDR S&P Emerging Asia Pacific	46.7	49	6	8.0	-0.6

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	John Hancock Multifactor Emerging Markets
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	12.4	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	55	bp
Equals: ALTAR Score	8.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.46	CATEGORY AVERAGE	1.49

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.