David Booth just made a deal to power another mutual fund shop's new smart beta ETF line.

Andrew G. Arnott John Hancock Investments President, CEO

Yesterday Andrew Arnott's Boston-based John Hancock Investments [profile] filed with the SEC to launch six multi-factor ETFs, all subadvised by Booth's Austin-based Dimensional Fund Advisors [profile]. The suite includes a large cap ETF, a mid cap ETF, a consumer discretionary ETF, a financials ETF, a healthcare ETF, and a technology ETF, and they have price tags ranging from 35 to 50 basis points. Hancock also trumpeted the alliance via a release.

Though these specific products are new, Hancock and DFA are not new to each other. Hancock and DFA both confirm that DFA has been powering Hancock mutual funds and asset allocation portfolios since 2006.

David G. Booth Dimensional Fund Advisors Chairman, Co-CEO

"John Hancock Investments has selected Dimensional to subadvise six new ETFs that are currently in registration with the SEC," A spokesman for DFA confirms in an emailed statement. "These new strategies add to the subadvisory relationship Dimensional and John Hancock Investments have shared for nearly 10 years."

Street Street will serve as transfer agent and custodian for the proposed ETFs, while Foreside will serve as principal distributor. 

Edited by: Neil Anderson, Managing Editor


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