John Hancock Disciplined Value International Select ETF (JDVI) seeks to provide long-term capital appreciation by investing in undervalued international developed market stocks outside the United States. The fund employs a disciplined value approach, selecting companies trading below their intrinsic value based on fundamental analysis.
How It Works
JDVI uses an actively managed approach where portfolio managers apply quantitative screens and fundamental analysis to identify undervalued international stocks. The selection process focuses on companies with low price-to-earnings ratios, price-to-book values, and strong balance sheets relative to peers. Holdings are concentrated in 30-50 positions across developed markets excluding the U.S., with quarterly rebalancing based on valuation changes and fundamental deterioration.
Key Features
- Concentrated portfolio of 30-50 high-conviction value picks allows for meaningful impact from individual stock selection
- Active management approach enables opportunistic positioning during market dislocations and value cycle rotations
- Recently launched in December 2023, offering fresh approach to international value investing without legacy positions
Risks
- This ETF can lose value if value investing falls out of favor, as growth stocks may significantly outperform value stocks for extended periods
- Concentrated holdings mean individual stock disappointments can materially impact performance, potentially causing 5-10% swings from single positions
- International exposure subjects the fund to currency fluctuations and foreign market volatility, potentially amplifying losses during global economic stress
Who Should Own This
Best suited as a satellite holding (10-20% of international allocation) for investors with 3+ year time horizons seeking active international value exposure. Medium-to-high risk tolerance required due to concentration and value style volatility. Appropriate for investors believing in value factor recovery and willing to accept manager-specific risks.