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Is JPMorgan Diversified Return International Equity ETF (JPIN) a Strong ETF Right Now?
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Launched on 11/06/2014, the JPMorgan Diversified Return International Equity ETF (JPIN - Free Report) is a smart beta exchange traded fund offering 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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by J.P. Morgan, JPIN has amassed assets over $771.55 million, making it one of the average sized ETFs in the Broad Developed World ETFs. JPIN 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for JPIN are 0.37%, which makes it on par with most peer products in the space.
JPIN's 12-month trailing dividend yield is 2.85%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
When you look at individual holdings, Nippon Steel Corp Common (5401.T) accounts for about 0.47% of the fund's total assets, followed by Antofagasta Plc Common (ANTO) and Ferguson Plc Common (FERG - Free Report) .
Its top 10 holdings account for approximately 4.34% of JPIN's total assets under management.
Performance and Risk
So far this year, JPIN has added roughly 3.30%, and is down about -7.99% in the last one year (as of 03/23/2023). During this past 52-week period, the fund has traded between $42.35 and $57.55.
The ETF has a beta of 0.79 and standard deviation of 17.92% for the trailing three-year period, making it a medium risk choice in the space. With about 474 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 - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $52.56 billion in assets, Vanguard FTSE Developed Markets ETF has $104.93 billion. VXUS has an expense ratio of 0.07% 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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Is JPMorgan Diversified Return International Equity ETF (JPIN) a Strong ETF Right Now?
Launched on 11/06/2014, the JPMorgan Diversified Return International Equity ETF (JPIN - Free Report) is a smart beta exchange traded fund offering 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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by J.P. Morgan, JPIN has amassed assets over $771.55 million, making it one of the average sized ETFs in the Broad Developed World ETFs. JPIN 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for JPIN are 0.37%, which makes it on par with most peer products in the space.
JPIN's 12-month trailing dividend yield is 2.85%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
When you look at individual holdings, Nippon Steel Corp Common (5401.T) accounts for about 0.47% of the fund's total assets, followed by Antofagasta Plc Common (ANTO) and Ferguson Plc Common (FERG - Free Report) .
Its top 10 holdings account for approximately 4.34% of JPIN's total assets under management.
Performance and Risk
So far this year, JPIN has added roughly 3.30%, and is down about -7.99% in the last one year (as of 03/23/2023). During this past 52-week period, the fund has traded between $42.35 and $57.55.
The ETF has a beta of 0.79 and standard deviation of 17.92% for the trailing three-year period, making it a medium risk choice in the space. With about 474 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 - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $52.56 billion in assets, Vanguard FTSE Developed Markets ETF has $104.93 billion. VXUS has an expense ratio of 0.07% 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.