The underlying indices also implement market-capitalization adjustments where they increase the weights of smaller companies within the eligible universe and decrease the weights of larger names. The weighting methodology help the ETFs follow a more equal-weight tilt with greater exposure to smaller companies than traditional market-cap weighted index funds in an attempt to capture the size premium and limit risks associated with high-flying, largeer stocks that may be overbought in an ongoing bull market rally.
Top sector weights include financials 17.0%, information technology 16.1%, industrials 14.6%, consumer discretionary 13.6% and real estate 11.5%. Top component holdings include Curtiss Wright 0.5%, Aspen Technology 0.4%, Emcor Group 0.4%, Idacorp 0.4% and Neurocrine Biosciences 0.4%.
The new JHSC will fill the gap left by the John Hancock Multifactor Large Cap ETF (NYSEArca: JHML) and John Hancock Multifactor Mid Cap ETF (NYSEArca: JHMM).
For more information on new fund products, visit our new ETFs category.