(JHPI) John Hancock Preferred - Ratings and Ratios

The John Hancock Preferred Income ETF (JHPI) is an exchange-traded fund that primarily invests in preferred stocks and securities, focusing on the utilities and communication sectors. Under normal market conditions, it allocates at least 80% of its net assets to these investments, which can include a variety of preferred securities such as convertible preferred securities, corporate hybrid securities, and trust preferred securities.

The funds investment strategy is centered around generating income through a concentrated portfolio in specific sectors, which can be attractive to investors seeking regular income streams. The utilities and communication sectors are often characterized by their relatively stable cash flows, which can support the dividend payments associated with preferred stocks.

Analyzing the technical data, JHPIs recent price action indicates a stable trend, with its last price of $22.39 being above both its 20-day and 50-day Simple Moving Averages (SMA) of $22.16, suggesting a slightly positive short-term outlook. The 200-day SMA at $22.24 is also close to the current price, indicating a stable long-term trend. The Average True Range (ATR) of 0.14, or 0.64%, suggests relatively low volatility, which is consistent with the stable nature of the sectors it invests in.

Considering the fundamental data, the funds Assets Under Management (AUM) stand at $72.18 million. While this is a relatively modest size, it is sufficient for maintaining liquidity and does not inherently indicate any significant drawbacks. The focus on preferred stocks in stable sectors like utilities and communications can provide a relatively stable source of income, which is attractive in a low-interest-rate environment.

Forecasting JHPIs performance, given its stable technical indicators and the attractiveness of its investment focus, the fund is likely to continue its stable trend. If interest rates remain stable or decrease, the attractiveness of JHPIs dividend yield could increase, potentially driving its price towards the 52-week high of $22.57. Conversely, a significant increase in interest rates could make the funds dividend yield less competitive, potentially pulling the price back towards the 52-week low of $20.92. However, given the current technical stability and the fundamental appeal of its investment strategy, a cautious outlook suggests that JHPI could maintain its current price levels or slightly increase, potentially reaching $22.60 in the near term, assuming no significant market disruptions.