ETF Research Center

The John Hancock Multifactor Health Care ETF tracks an index of US health care stocks, weighted for exposure to 4 factors: small size, low relative price, high profitability and high momentum.

FUND BASICS
Category	US Equities
Fund Sponsor	John Hancock
Website	etf.jhinvestments.com
Inception date	Sep 29, 2015
Assets (mns)	$44
Currency	USD
Expense ratio	40 bp
Distributions	Semi-Annually

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Multi-Factor
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	114
Wgt avg mkt cap (mns)	$104,800
Large cap (>$10bn)	89.2%
Mid cap ($2-10bn)	10.5%
Small cap (<$2bn)	0.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	34.2 %
JOHNSON & JOHNSON	5.9 %
UNITEDHEALTH GROUP INC	5.5 %
PFIZER INC	4.4 %
MERCK & CO. INC.	4.2 %
BRISTOL-MYERS SQUIBB CO	2.5 %
MEDTRONIC PLC	2.5 %
ABBOTT LABORATORIES	2.3 %
THERMO FISHER SCIENTIFIC INC	2.3 %
AMGEN INC	2.3 %
CIGNA CORP	2.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.1 %
	IRELAND	6.0 %
	BRITAIN	0.9 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
21.2%	21.2%	--	--	11.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.96	70%
MSCI EAFE	0.86	46%
MSCI Emg. Mkts.	0.61	40%

Technical Indicators
Recent close	$38.41
30d moving avg.	$37.32
Annualized volatility	13.9%
Short interest (ETF)	0.0%
Short interest (Underlying)	2.9%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	21
Turnover	1.8%
Bid/Ask (% of price)	0.15%
ADV underlying (mns)	$23,557

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

JHMH

Expense:

40 bp

ALTAR Score™:

6.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH JHMH
Ticker	Fund Name	Overlap¹ vs JHMH (%)	Expense ratio (bp)	Savings vs JHMH (bp)	ALTAR Score™ (%)	ALTAR vs JHMH (%)
IYH	iShares US Healthcare	77.5	43	-3	5.9	-0.4
FHLC	Fidelity MSCI Health Care	77.4	8	32	5.5	-0.8
VHT	Vanguard Health Care	77.3	10	30	5.5	-0.7
XLV	Health Care Select Sector SPDR	72.7	13	27	6.8	+0.6
RYH	Invesco S&P Equal Weight Healthcare	67.8	40	0	6.7	+0.4
IXJ	iShares S&P Global Healthcare	63.8	46	-6	6.0	-0.3
IEHS	iShares Evolved U.S. Healthcare Staples	55.4	18	22	5.5	-0.7
FXH	First Trust Health Care Alphadex	52.5	63	-23	6.7	+0.4
IEIH	iShares Evolved U.S. Innovative Healthcare	42.5	18	22	3.8	-2.5
PJP	Invesco Dynamic Pharmaceuticals	31.0	56	-16	10.5	+4.2
PBE	Invesco Dynamic Biotechnology & Genome	31.0	57	-17	10.5	+4.2
GDNA	Goldman Sachs Motif Human Evolution	28.9	50	-10	1.0	-5.3
FTXH	First Trust Nasdaq Pharmaceuticals	26.5	60	-20	4.1	-2.1
LNGR	Global X Longevity Thematic	25.7	50	-10	3.2	-3.0
PPH	VanEck Vectors Pharmaceuticals	25.6	36	4	8.9	+2.6
IHI	iShares DJ US Medical Devices	25.1	43	-3	3.6	-2.7
IHE	iShares DJ US Pharmaceuticals	24.3	42	-2	4.9	-1.4
HTEC	Robo Global Healthcare Technology and Innovation	24.0	68	-28	-0.6	-6.8
HLAL	Wahed FTSE USA Shariah	23.7	50	-10	5.3	-1.0
XHE	SPDR S&P Health Care Equipment	23.0	35	5	1.9	-4.3

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 Health Care
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	21.0	%
Divided by: Fwd. P/BV	3.2	x
Less: Expense ratio	40	bp
Equals: ALTAR Score	6.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.43	CATEGORY AVERAGE	1.55

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.