Summary

• The John Hancock Preferred Income ETF outperformed its benchmark, the ICE BofA U.S. All Capital Securities Index, during the first quarter.
• The fund's security selection within the communications and electric utility sectors was the primary contributor to outperformance, while an allocation to swap instruments offset these gains.
• The successful positioning in preferred securities from major financial institutions undergoing transformative mergers, including Fifth Third Bancorp and Pinnacle Financial Partners, contributed meaningfully to performance.
• Defensive sectors such as regulated electric utilities and natural gas are key to managing through economic slowdowns and geopolitical events.
• The investment team continues to monitor current market risks, including inflation persistence, geopolitical instability, and interest rate volatility driven by shifting Fed expectations.

Quarterly commentary Highlights

• The U.S. bond market produced mixed results in the first quarter.

• The fund outperformed its benchmark, the ICE BofA U.S. All Capital Securities Index.

• Security selection within the communications