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Is JPMorgan Diversified Return International Equity ETF (JPIN) a Strong ETF Right Now?
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The JPMorgan Diversified Return International Equity ETF (JPIN - Free Report) was launched on 11/06/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
JPIN is managed by J.P. Morgan, and this fund has amassed over $752.88 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, this particular fund 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for JPIN are 0.37%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 5.69%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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).
JPIN's top 10 holdings account for about 4.46% of its total assets under management.
Performance and Risk
So far this year, JPIN has lost about -10.40%, and is down about -10.57% in the last one year (as of 05/06/2022). During this past 52-week period, the fund has traded between $53.02 and $64.56.
The ETF has a beta of 0.77 and standard deviation of 20.17% for the trailing three-year period, making it 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 $47.99 billion in assets, Vanguard FTSE Developed Markets ETF has $98.50 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?
The JPMorgan Diversified Return International Equity ETF (JPIN - Free Report) was launched on 11/06/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
JPIN is managed by J.P. Morgan, and this fund has amassed over $752.88 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, this particular fund 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for JPIN are 0.37%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 5.69%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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).
JPIN's top 10 holdings account for about 4.46% of its total assets under management.
Performance and Risk
So far this year, JPIN has lost about -10.40%, and is down about -10.57% in the last one year (as of 05/06/2022). During this past 52-week period, the fund has traded between $53.02 and $64.56.
The ETF has a beta of 0.77 and standard deviation of 20.17% for the trailing three-year period, making it 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 $47.99 billion in assets, Vanguard FTSE Developed Markets ETF has $98.50 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.