Manulife Investment Management and John Hancock Launch Hedged Equity ETF JHDG on NYSE Arca

Manulife Investment Management and John Hancock Investment Management have expanded their ETF lineup with the launch of a new hedged equity strategy. The John Hancock Hedged Equity ETF (JHDG) debuted on the NYSE Arca on April 8.

The fund combines a high-conviction equity sleeve with a dynamic options overlay. The launch represents an evolution of a strategy the firm has run internally since 2020.

Strategy overview

According to a press release, the new ETF builds on a tested strategy managed by the firm since 2020. It pairs a high-conviction equity portfolio with an actively managed options overlay, aiming to benefit from market tailwinds while smoothing out sharp declines associated with volatility.

“Advisors are increasingly adopting active ETFs as part of more efficient, outcome‑oriented portfolio construction seeking potential benefits such as cost efficiency, tax efficiency, and diversification,” said Kristie Feinberg, president and CEO of Manulife John Hancock Investments. “This momentum underscores the meaningful role active ETFs can play in helping clients achieve their long‑term savings and investment goals.”

The launch brings the firm’s total ETF lineup to 19 funds, with nearly $13 billion in assets under management.

Active vs. passive hedging

The primary differentiator is the fund’s discretionary mandate. Many “buffered” or hedged ETFs use rigid, rules-based schedules that reset options on a monthly or quarterly basis regardless of market conditions. By contrast, this fund allows managers to adjust the hedge in real time.

Two core components define the portfolio’s structure:

• Equity sleeve: a concentrated portfolio of stocks selected through fundamental research.
• Options sleeve: an active overlay intended to mitigate downside risk, with managers able to tighten or loosen the hedge based on changes in implied volatility and broader macro and technical conditions.

Together, the approach is designed to provide a smoother return profile for investors seeking equity exposure while remaining cautious of sharp drawdowns often seen in late-cycle markets.

Broader active ETF footprint

While the firm offers several funds that track smart beta indices, it remains primarily an active manager and continues to expand its capabilities in this area.

Examples include:

• John Hancock Disciplined Value Select ETF (JDVL): an actively managed U.S. equity strategy subadvised by Boston Partners that invests in a concentrated portfolio of 35 to 40 value stocks.
• John Hancock Global Senior Loan ETF (JHLN): targets income through a global senior loan strategy.

With the exception of the John Hancock Core Bond ETF (JHCR), the firm’s five largest ETFs are multifactor strategies that are passively managed and track indices developed by Dimensional.

The firm’s largest ETF is the John Hancock Multifactor Mid Cap ETF (JHMM), with approximately $4.9 billion in AUM.

Rationale and market context

The move into hedged equity via JHDG is positioned as a response to the “volatility tax” weighing on traditional 60/40 portfolios. By packaging an institutional hedging strategy into an ETF, the firm is targeting advisors who want to stay invested to meet growth targets but do not have the resources to manage complex options strategies themselves.

In a crowded ETF market, the firm is emphasizing that active management of risk—rather than stock selection alone—will be a key factor for attracting capital in 2026.