John Hancock Dynamic Municipal Bond ETF

John Hancock Dynamic Municipal Bond ETF (JHMU) is an actively managed fund from Manulife's John Hancock that buys municipal bonds and aims for income exempt from federal income tax. It does not follow an index like VTEB or MUB do. Its managers favor revenue bonds and may put up to 20% in junk-rated bonds. It costs 0.39% a year after a fee waiver, versus 0.03% for VTEB, and held only about $44 million as of June 30, 2026.

• Over the year to Oct 27, 2026, JHMU returned +0.8%, 1st of 8 among similar funds.
• Its worst full calendar year was 2024 (+3.8%); its best was 2025 (+5.1%).
• The deepest fall in its price history was 6.2% (Jul 6, 2026 to Sep 29, 2026), not yet recovered.

As of Jun 30, 2026, the fund held 219 securities; the ten largest made up 12.24% of assets.

The bonds mature in 14.3 years on average (weighted by size), with an average coupon of 4.76%.

• Over the three months to Jun 30, 2026, investors added a net $2.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.04%, +0.54%, +0.82%.

JHMU does not track an index. Its managers pick the bonds. At least 80% of net assets must be in municipal bonds, which are loans to states, cities and public agencies. The bonds can be of any maturity. Most must be investment grade when bought, but up to 20% can be rated BB or lower (junk bonds). The managers prefer revenue bonds, which are repaid from a specific project such as a power plant or airport, because they tend to pay more than general obligation bonds. They also like call protection, which limits an issuer's ability to repay a bond early when rates fall.

As of June 30, 2026, the fund held 219 bonds. The top ten made up 12.24% of assets, and the largest, a Port of Seattle bond, was about 1.3%. Other large holdings included bonds from California Community Choice Financing, Tennessee Energy Acquisition Corporation and the Philadelphia and Salt Lake City airports. Average maturity was 14.3 years and the average coupon was 4.76%. The fund can hold a lot of bonds from one state or region. The managers may also trade short term to profit from mispriced bonds. Turnover was 38%.

The fund may use tender option bonds, a kind of borrowing that adds leverage, with up to 15% of its municipal holdings. Some bonds may be subject to the alternative minimum tax (AMT). The fund sometimes creates and redeems shares for cash, which can make it less tax-efficient than other ETFs.

• JHMU charges 0.39% a year, versus an average of 0.24% for the similar funds below (7th of 8, cheapest first).
• Of that, 0.32% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.38% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $919 over 10 years (assuming a 5% annual return).

Its main job is paying monthly income that is generally exempt from federal income tax, from a portfolio of mostly investment-grade municipal bonds.

JHMU pays monthly. Its trailing 12-month yield was 3.92% as of October 27, 2026, or about $1 per share. The fund launched in November 2023, so it has no record from the 2008, 2020 or 2022 downturns. Its weakest calendar year, 2024, still gained 3.8%. Its deepest drop was 6.2%, from July 6 to September 29, 2026, and it had not recovered as of October 27, 2026. A retiree who sold shares in a slump like that would have locked in a loss. With an average maturity of 14.3 years, its price can fall when interest rates rise. Its payouts can also be cut if its income declines. It costs 0.39% a year, compared with a 0.24% average for similar funds. Past results don't predict the future, and any plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).