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Is JPMorgan Diversified Return International Equity ETF (JPIN) a Strong ETF Right Now?
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A smart beta exchange traded fund, the JPMorgan Diversified Return International Equity ETF (JPIN - Free Report) debuted on 11/06/2014, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
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
JPIN is managed by J.P. Morgan, and this fund has amassed over $836.78 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, JPIN seeks to match the performance of the FTSE Developed ex North America Diversified Factor Index.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.37% for JPIN, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.94%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Open House Co Ltd Common accounts for about 0.47% of the fund's total assets, followed by Cash Or Cash Collateral and Royal Dutch Shell Plc (RDSA).
Its top 10 holdings account for approximately 4.46% of JPIN's total assets under management.
Performance and Risk
Year-to-date, the JPMorgan Diversified Return International Equity ETF has added roughly 4.50% so far, and is up about 5.63% over the last 12 months (as of 12/20/2021). JPIN has traded between $56.77 and $64.56 in this past 52-week period.
JPIN has a beta of 0.80 and standard deviation of 19.82% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 478 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 $50.73 billion in assets, Vanguard FTSE Developed Markets ETF has $105 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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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 - Free Report) debuted on 11/06/2014, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
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
JPIN is managed by J.P. Morgan, and this fund has amassed over $836.78 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, JPIN seeks to match the performance of the FTSE Developed ex North America Diversified Factor Index.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.37% for JPIN, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.94%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Open House Co Ltd Common accounts for about 0.47% of the fund's total assets, followed by Cash Or Cash Collateral and Royal Dutch Shell Plc (RDSA).
Its top 10 holdings account for approximately 4.46% of JPIN's total assets under management.
Performance and Risk
Year-to-date, the JPMorgan Diversified Return International Equity ETF has added roughly 4.50% so far, and is up about 5.63% over the last 12 months (as of 12/20/2021). JPIN has traded between $56.77 and $64.56 in this past 52-week period.
JPIN has a beta of 0.80 and standard deviation of 19.82% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 478 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 $50.73 billion in assets, Vanguard FTSE Developed Markets ETF has $105 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.