Yahoo Finance Is JPMorgan Diversified Return International Equity ETF (JPIN) a Strong ETF Right Now?
A smart beta exchange traded fund, the JPMorgan Diversified Return International Equity ETF (JPIN) debuted on 11/06/2014, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
JPIN is managed by J.P. Morgan, and this fund has amassed over $378.42 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. This particular fund seeks to match the performance of the FTSE Developed ex North America Diversified Factor Index before fees and expenses.
The JP Morgan Diversified Factor International Equity Index utilizes a rules-based approach combining risk-weighted portfolio construction with multi-factor security screening based on value, quality and momentum factors.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.37%.
The fund has a 12-month trailing dividend yield of 5.84%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Kb Financial Group Inc (A105560) accounts for about 0.48% of the fund's total assets, followed by Hana Financial Group Inc (A086790) and Antofagasta Plc Common (ANTO).
JPIN's top 10 holdings account for about 4.29% of its total assets under management.
Performance and Risk
Year-to-date, the JPMorgan Diversified Return International Equity ETF has added roughly 2.48% so far, and is up about 9.63% over the last 12 months (as of 04/30/2024). JPIN has traded between $48.36 and $56.44 in this past 52-week period.
The fund has a beta of 0.81 and standard deviation of 14.52% for the trailing three-year period, which makes JPIN a medium risk choice in this particular space. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
JPMorgan Diversified Return International Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $68.33 billion in assets, Vanguard FTSE Developed Markets ETF has $129 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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JPMorgan Diversified Return International Equity ETF (JPIN): ETF Research Reports
Vanguard FTSE Developed Markets ETF (VEA): ETF Research Reports
Vanguard Total International Stock ETF (VXUS): ETF Research Reports
