For investors seeking momentum, John Hancock Multifactor Utilities ETF JHMU is probably a suitable pick. The fund just hit a 52-week high, up roughly 22.9% from its 52-week low of $29.23/share.
But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
JHMU in Focus
The fund provides investment results that closely correspond, before fees and expenses, to the performance of the John Hancock Dimensional Utilities Index. JHMU is charging 40 bps in fees. The fund has amassed $37.2 million in AUM (see all Utilities/Infrastructure ETFs here).
Why the Move?
China is grappling with the coronavirus outbreak that has already claimed at least 425 lives in the country along with more than 20,438 confirmed cases. The virus has been spreading really fast over the past week and has now infected people in Hong Kong, Australia, Philippines, United Kingdom, India, Malaysia, Thailand, France, Japan, Taiwan, Vietnam, Singapore, South Korea, Macao and Nepal, with its epicenter in Wuhan, China. Thus, the panic in global markets is adding to the lure of safer investment picks. Notably, in a lower-rate environment, high-dividend-yield sectors such as utilities are generally the biggest beneficiaries given their sensitivity to interest rates and offering of higher returns due to outsized yields.
More Gains Ahead?
Currently, JHMU has a Zacks Rank #3 (Hold). However, it seems that JHMU might remain strong given a positive weighted alpha of 20.3.
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John Hancock Multifactor Utilities ETF (JHMU): ETF Research Reports
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Zacks Investment Research