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What is an ETF?
An ETF, or exchange-traded fund, is similar to a mutual fund. It can hold stocks, bonds or other assets. You can buy and sell ETF shares on stock exchanges the same way shares are traded for thousands of companies around the world.
Some typical features of ETFs are:
They seek to replicate the companies, weightings and performance of a stock market index, such as the S&P/TSX Composite Index in Canada or the S&P 500 Index in the U.S.
Gives you a simple, one-step way to invest in many companies and diversify your portfolio
The Manulife ETF Difference
One common way for traditional ETFs to construct their portfolio of stocks is to use market capitalization figures (current share price multiplied by the number of outstanding shares) of companies. While this method may appeal to some investors, it may also have limitations.
Strategic beta strategies used in Manulife ETFs offer a different approach. In addition to market capitalization, these strategies consider a company’s relative price and profitability. Decades of empirical research has linked smaller capitalization, lower relative price, and higher profitability to higher expected returns from stocks. This approach leads to a custom index that emphasizes specific market segments with the potential to achieve better returns.
Manulife ETFs seek to improve upon traditional market capitalization strategies by tracking a custom index that combines active portfolio management insight with the discipline of a passive, rules-based approach.
Decades of factor-based investment management expertise
Dimensional Fund Advisors, a leading global investment firm that has been translating academic research into practical investment solutions since 1981. The firm focuses on the factors with the potential for higher expected returns, which is based in part on the research of Nobel Laureate Eugene Fama and renowned researcher Kenneth French, both of whom serve on Dimensional’s board of directors*.
- Guided by a strong belief in markets, Dimensional works to implement compelling ideas in finance for the benefit of investors
- An enduring philosophy, strong client commitment, and a strong connection with the academic community underpin Dimensional’s approach
- By evolving with advances in financial science, Dimensional has delivered long-term results for investors
*Eugene Fama and Kenneth French provide consulting services to and are board members of an affiliate of Dimensional Fund Advisors Canada ULC.
Why choose Manulife ETFs
Simple, one-step way to diversify your portfolio
Management expertise - sub-advisor offers decades of experience managing multifactor portfolios
Core part of your overall portfolio
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“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 sub-advisor to the Manulife ETFs. Neither Dimensional Fund Advisors Canada ULC nor its affiliates is affiliated with Manulife Investments or any of its affiliated entities.
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 it before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
Manulife ETFs are managed by Manulife Investments, a division of Manulife Asset Management Limited.