John Hancock Multifactor Emerging Markets ETF

John Hancock Multifactor Emerging Markets ETF (JHEM) tracks the John Hancock Dimensional Emerging Markets Index, a rules-based index built by Dimensional Fund Advisors that held 957 emerging-market stocks as of June 30, 2026. Instead of weighting purely by company size, it tilts toward smaller, lower-priced and more profitable companies. Its 0.49% expense ratio is well above the 0.25% average of similar funds, and at about $1.0 billion it is the smallest of them.

• Over the year to Oct 27, 2026, JHEM returned +15.7%, 2nd of 9 among similar funds.
• Its 5-year annualized return was +7.3%.
• In the 2020 COVID crash it fell 32.4% and regained its old high 7.4 months after the low.
• Its worst full calendar year was 2022 (-17.9%); its best was 2025 (+30.5%).
• The deepest fall in its price history was 35% (Jan 13, 2020 to Mar 23, 2020), recovered by Nov 11, 2020.

As of Jun 30, 2026, the fund held 957 securities; the ten largest made up 28.18% of assets.

• Over the three months to Jun 30, 2026, investors added a net $100.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +13.32%, +9.36%, -2.09%.

JHEM is an index fund. It aims to track the John Hancock Dimensional Emerging Markets Index, which Dimensional Fund Advisors builds and maintains. At least 80% of net assets normally go into index stocks or depositary receipts (certificates representing a foreign company's shares). The fund generally mirrors the index and held 957 securities as of June 30, 2026. Eligible markets include Taiwan, South Korea, China (including mainland A-shares), India and Brazil.

Eligible stocks are generally the larger companies in each market: those making up the top 80% of each country's market value and the top 85% across all eligible countries. Weighting follows a rules-based "multifactor" approach, sometimes called smart beta. Each stock starts at its free-float market value (counting only shares available to the public). Within each country, that weight is tilted up for smaller companies, cheaper stocks (lower relative price) and more profitable businesses, and tilted down for the opposite.

The index is rebalanced twice a year, capping any single company at 4% at each rebalance. Between rebalances, weights move with prices and can exceed that cap: as of June 30, 2026, SK hynix made up 7.7% of the fund and Samsung Electronics 5.9%. The fund may use cash instead of securities when large institutions create or redeem shares, which can make it less tax-efficient than ETFs that exchange only securities.

• JHEM charges 0.49% a year, versus an average of 0.25% for the similar funds below (8th of 9, cheapest first).
• Of that, 0.44% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.09% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $717 over 10 years (assuming a 5% annual return).

Emerging-market stocks can broaden a mostly US portfolio, but JHEM's heavy weight in Korean and Taiwanese chipmakers and its 35% peak-to-trough drop make it a higher-risk slice.

JHEM launched in September 2018, so it has no record from the 2008 financial crisis. In the 2020 COVID crash it fell 32.4% and recovered in about 7 months. Its deepest drop overall was 35%, from January to March 2020. The 2022 bear market was harder: a 27.6% decline took about 23 months to recover, until September 2024. Its worst calendar year was 2022, at -17.37%. A retiree who had to cash out shares during a stretch like that would lock in losses.

Income is modest: the trailing yield was 1.89% as of October 27, 2026, and the fund pays twice a year. Costs are high for the category. In the SEC's standard example, a $10,000 investment would cost $50 after one year and $717 after ten. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.