July 7, 2021
A guide to actively managed bond ETFs
We believe the strong case for active management in bond portfolios and further innovation will continue to drive this trend for years to come.
ETFs
Active and multifactor strategies built to help investors achieve their goals.
We believe investors should get more out of their ETFs than just efficient sector or asset class exposure. Each part of a portfolio should serve a purpose and add value as you invest to achieve your goals.
Featured funds
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Manulife Smart U.S. Defensive Equity ETF (TSX: UDEF) Manulife Smart Defensive Equity ETF (TSX: CDEF) Strategy overview
Introducing Manulife Smart Defensive Equity ETFs
Markets can be sensitive. Don’t get out, get defensive.
The Canadian and U.S. equity ETFs seek to reduce sensitivity to market movements which can help investors maintain equity exposure and stay invested through periods of ups and downs.
Using an active, systematic approach, the funds invest in high-quality securities that have a lower beta than the broad market.
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Fund profile Portfolio management
TSX ticker
TERM
Manulife Smart Short-Term Bond ETF
Seeks to earn a high level of income, preserve capital and can reduce overall portfolio duration. Provides access to Canadian corporate short-term bonds.
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Fund profile Portfolio management
TSX ticker
CDIV
Manulife Smart Dividend ETF
Aims to provide consistent income and total return by investing in Canadian companies that pay a stable and growing dividend.
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Learn more
Segregated funds & ETFs: A smart match
Manulife Smart ETFs are now available in two of our most popular segregated fund contracts.
They’re built to help investors achieve their goals by combining the investment advantages of ETFs with the insurance benefits available with segregated fund contracts.
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Fund profile: mutual fund platform Fund profile: GIF Select InvestmentPlus Fund profile: MPIP Segregated Pools
Introducing Manulife Smart Balanced Dividend ETF Bundle
The Manulife Smart Balanced Dividend ETF Bundle is a simple, low-cost, one-ticket solution, offering access to some of the same investment strategies as our actively managed ETFs.
Available on both our mutual fund and segregated fund platforms (MPIP Segregated Pools and Manulife GIF Select InvestmentPlus).
Viewpoints
March 4, 2021
Don’t Fall Prey to the Dividend Trap
As the spotlight grows on dividend-paying companies, it is important that investors not simply choose the highest dividend yields available but also make sure they are investing in a high-quality source for that dividend. As in all things, quality matters.
Strategy overviews
Manulife Smart Defensive Equity ETFs to invest through uncertainty
Investors feel losses as 2x more painful than equivalent gains.* Investors – in order to avoid a loss in uncertain markets – may be tempted to try and time the market. Since 1980 the S&P 500 Index has fallen an average of 14% in any given calendar year but is positive 78% of the time.** Is there a solution that may help investors stay invested and progressing towards their goals?
The new Manulife Smart Defensive Equity ETFs are designed to be less sensitive to movements in the market allowing investors to maintain equity exposure through the ups and downs of the equity markets each year.
The actively managed ETFs invest in high quality securities that have a lower beta than the broad market. At the core of the investment strategy is a screen for stocks that have three important features: low beta, stable earnings, and low stock price volatility.
This combination may provide better investor experiences in volatile markets and can help keep clients invested over the long term.
Important disclosure
*Sources: BEWorks, March 2020.
** Bloomberg, Manulife Investment Management, October 2021.
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 active investment management, research and client-centric mentality can provide 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, Systematic Fixed Income Beta (part of the Multi-Asset Solutions 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
Tickers marked with * indicate the unhedged version of the ETF. Tickers marked with ** indicate a management fee, not MER.
Active fixed income ETFs
Multifactor index equity ETFs
Tickers |
Fund name |
Fee |
Category | Distribution |
|---|---|---|---|---|
| Manulife Multifactor Canadian Large Cap Index ETF | 0.45% | Canadian large cap equity | Semi-annual | |
| MCSM | Manulife Multifactor Canadian SMID Cap Index ETF | 0.68% | Canadian small/mid cap equity | Semi-annual |
| MINT / MINT.B* | Manulife Multifactor Developed International Index ETF | 0.62% / 0.56% | International equity | Semi-annual |
| MEME.B* | Manulife Multifactor Emerging Markets Index ETF | 0.73% | Emerging markets equity | Semi-annual |
| MULC / MULC.B* | Manulife Multifactor U.S. Large Cap Index ETF | 0.45% / 0.39% | U.S. large cap equity | Semi-annual |
| MUMC / MUMC.B* | Manulife Multifactor U.S. Mid Cap Index ETF | 0.55% / 0.49% | U.S. mid cap equity | Semi-annual |
| MUSC / MUSC.B* | Manulife Multifactor U.S. Small Cap Index ETF | 0.62% / 0.57% | U.S. small cap equity | Semi-annual |
Important disclosure
1 Source: Manulife Investment Management, Manulife Systematic Equity Beta, 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.