Summary

• John Hancock Mortgage-Backed Securities ETF underperformed its benchmark, the Bloomberg U.S. MBS Index, during the first quarter period.
• In March, bond yields soared and prices fell in response to escalating conflict in the Middle East and stoking concerns about rising inflation.
• Investors began pricing in an interest rate increase before year-end as geopolitical uncertainty led to dramatic changes in expectations for Federal Reserve interest rate policy.
• Yield curve positioning detracted from performance, while sector allocation produced mixed results for the John Hancock Mortgage-Backed Securities ETF.
• John Hancock Investment Management continues to see favorable valuations and attractive total return prospects in the mortgage-backed securities market and has positioned the fund accordingly.

Quarterly commentary Highlights

• MBS posted positive returns in a volatile first quarter.

• The fund underperformed its benchmark, the Bloomberg U.S. MBS Index, during the period.

• Yield curve positioning detracted from performance, while sector