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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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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
The fund is managed by J.P. Morgan. JPIN has been able to amass assets over $804.53 million, making 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
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.
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 5.32%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Open House Co Ltd Common accounts for about 0.47% of total assets, followed by Cash Or Cash Collateral and Royal Dutch Shell Plc (RDSA).
The top 10 holdings account for about 4.46% of total assets under management.
Performance and Risk
The ETF has lost about -5.94% and is down about -1.27% so far this year and in the past one year (as of 03/04/2022), respectively. JPIN has traded between $55.87 and $64.56 during this last 52-week period.
JPIN has a beta of 0.78 and standard deviation of 19.80% 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 $50.21 billion in assets, Vanguard FTSE Developed Markets ETF has $102.41 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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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
The fund is managed by J.P. Morgan. JPIN has been able to amass assets over $804.53 million, making 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
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.
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 5.32%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Open House Co Ltd Common accounts for about 0.47% of total assets, followed by Cash Or Cash Collateral and Royal Dutch Shell Plc (RDSA).
The top 10 holdings account for about 4.46% of total assets under management.
Performance and Risk
The ETF has lost about -5.94% and is down about -1.27% so far this year and in the past one year (as of 03/04/2022), respectively. JPIN has traded between $55.87 and $64.56 during this last 52-week period.
JPIN has a beta of 0.78 and standard deviation of 19.80% 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 $50.21 billion in assets, Vanguard FTSE Developed Markets ETF has $102.41 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.