March 15, 2021
U.S. mid cap equities: a multifactor ETF approach
A multifactor investing approach in an ETF structure may make sense for mid cap stocks due to their unique characteristics, opportunities and challenges.
ETFs
Innovative solutions designed to help investors achieve their goals.
About Manulife ETFs
Creating efficient and effective investor portfolios today means more than finding the right fund at the right time.
In today’s environment, investor portfolios need to provide more than just efficient sector or asset class exposure. Each strategy and holding should serve a purpose and add value for investors as they strive to achieve their goals. Manulife ETFs are ready to help in that pursuit. The teams managing our ETFs were selected for their expertise in each asset class, their rigorous and efficient investment processes and the commitment to add value over time.
Across both active and strategic beta strategies, each ETF was created with one goal – to help investors achieve their goals.
Introducing Manulife Smart ETFs
We’re excited to add five new ETFs to our lineup – all managed by Manulife Investment Management portfolio management teams. Manulife Smart ETFs provide investors access to key asset classes and innovative, active strategies, each with competitive fees.
- Active strategies
- Manulife portfolio managers
- Attractive pricing
Now that’s smart.
If you’re an IIROC-licensed advisor and able to buy/sell ETFs on an exchange, connect with an ETF specialist for a deeper dive on:
- Portfolio construction using ETFs
- Current ETF opportunities and ideas
- Trading tips and best practices
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Thank you for contacting Manulife Investment Management. One of our ETF specialists will be in touch with you shortly.
Manulife Smart Dividend ETFs for income
Historically, nearly half of the stock markets total return is made up of dividend returns¹. A steady stream of dividend income becomes more important when market returns are volatile or when expectations for broad market returns are in the single digits.
Investing in dividend paying stocks in a systematic manner can help investors capture that income in an efficient way. That’s where the Manulife Beta Management Team provides value. They bring expertise from running a highly disciplined and controlled investment process and apply it to an active quantitative strategy. Their strategy screens for growing and stable dividend payers, and applies a set of factors to produce the portfolio.
The result is an efficient solution that provides a diversified mix of high and sustainable dividend payers.
Manulife Smart Bond ETFs for capital preservation
Interest rates have been in decline for over 20 years and yields are also at near historic lows – two truths that don’t seem to be reversing courses. However, bonds provide diversification and can help balance equity volatility in a portfolio. What’s an investor left to do?
In the Canadian investment grade bond market, the Manulife Quantitative Management Team is confronting that challenge directly. Using an active systematic approach that combines quantitative models and active credit research, their strategies aim to deliver a better yield experience than broad bond markets while also preserving capital.
Manulife Multifactor ETFs for total return
Based on decades of academic research, Dimensional Fund Advisors² build portfolios that are based on three drivers of equity performance.
The three drivers, which they refer to as dimensions, are company size, relative price3 and profitability4. Simply put, the research indicates that, over time, smaller stocks tend to outperform larger stocks, value stocks tend to outperform growth stocks and stocks that are more profitable tend to outperform less profitable stocks.
What does this add up to? For investors focused on long-term total returns, it adds up to a portfolio that captures the potential premium from each factor.
ETF list
Active bond ETFs
Hedged ticker |
Unhedged ticker |
Fund name |
Morningstar category |
Use for |
|---|---|---|---|---|
- |
Manulife Smart Short-Term Bond ETF |
Canadian short-term fixed income | Core Canadian investment grade bond holding | |
- |
Manulife Smart Core Bond ETF |
Canadian fixed income | Core Canadian investment grade bond holding | |
- |
Manulife Smart Corporate Bond ETF |
Canadian corporate fixed income | Core Canadian investment grade bond holding |
Multifactor index ETFs
Hedged ticker |
Unhedged ticker |
Fund name |
Morningstar category | Use for |
|---|---|---|---|---|
- |
Manulife Multifactor Canadian Large Cap Index ETF |
Canadian equity | Core Canadian equity holding | |
- |
Manulife Multifactor Canadian SMID Cap Index ETF |
Canadian small/mid cap equity | Core Canadian equity holding | |
Manulife Multifactor Developed International Index ETF |
International equity | Core international holding | ||
- |
Manulife Multifactor Emerging Markets Index ETF |
Emerging markets equity | Core international holding | |
Manulife Multifactor U.S. Large Cap Index ETF |
U.S. equity | Core U.S. equity holding | ||
Manulife Multifactor U.S. Mid Cap Index ETF |
U.S. small/mid cap equity | Core U.S. equity holding | ||
Manulife Multifactor U.S. Small Cap Index ETF |
U.S. small/mid cap equity | Core U.S. equity holding |
Related Viewpoints
March 4, 2021
Market volatility and ETF trading tips
ETF investors can better navigate volatile markets by keeping a few basic principles in mind, including resisting the urge to panic-sell.
March 25, 2020
Getting started in multifactor ETF due diligence
Multifactor ETF due diligence involves a combination of techniques used to evaluate active managers and passive index-based ETFs.
March 4, 2020
Using the profitability factor in multifactor investing
Adding profitability to other factors such as size and value in multifactor ETFs may improve risk-adjusted returns and overall portfolio diversification.
Important disclosure
1 Source: Manulife Investment Management, Manulife Beta Management Team, December 31, 2019. Calculations were made using Robert Schiller Data Library from 1909 to 1989 and Bloomberg from 1990 to 2019.
2 Dimensional Fund Advisors and Dimensional refer to the Dimensional separate but affiliated entities generally, rather than to one particular entity. Dimensional Fund Advisors Canada ULC is the subadvisor to the Manulife Investment Management ETFs. Neither Dimensional Fund Advisors Canada ULC nor its affiliates are affiliated with Manulife Investment Management or any of its affiliated entities. Dimensional Fund Advisors LP receives compensation from Manulife Investment Management in connection with licensing rights to the indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, the Manulife ETFs. Dimensional refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., Dimensional Japan Ltd., and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services. Commissions, management fees, and expenses all may be associated with exchange-traded funds (ETFs). Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus. Please read the prospectus before investing. ETFs are not guaranteed, as their values change frequently. Past performance does not guarantee future results.
3 Relative price, as measured by the price-to-book ratio; value stocks are those with lower price-to-book ratios.
4 Profitability is a measure of current profitability, based on the information from individuals companies’ income statements. Diversification does not guarantee a profit or eliminate the risk of loss.
Commissions, management fees, and expenses may all be associated with exchange-traded funds (ETFs).
Investment objectives, risks, fees, expenses, and other important information are in the ETF facts as well as the prospectus, please read the prospectus before investing.
Manulife ETFs are managed by Manulife Investment Management (formerly named Manulife Asset Management Limited). Manulife Investment Management is a trade name of Manulife Investment Management Limited.
Manulife, Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.