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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) made its debut on 11/06/2014, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix 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
JPIN is managed by J.P. Morgan, and this fund has amassed over $663.17 million, which makes it one of the larger ETFs in the World ETFs. JPIN, before fees and expenses, 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.
Operating expenses on an annual basis are 0.37% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.80%.
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.
When you look at individual holdings, Lenovo Group Ltd Common accounts for about 0.48% of the fund's total assets, followed by Sembcorp Industries Ltd (SCI - Free Report) and Bae Systems Plc Common (BA.).
The top 10 holdings account for about 4.37% of total assets under management.
Performance and Risk
Year-to-date, the JPMorgan Diversified Return International Equity ETF has gained about 5.43% so far, and is down about -0.99% over the last 12 months (as of 05/26/2023). JPIN has traded between $42.35 and $54.55 in this past 52-week period.
The fund has a beta of 0.80 and standard deviation of 15.75% for the trailing three-year period, which makes JPIN a medium risk choice in this particular space. With about 470 holdings, it effectively diversifies company-specific risk.
Alternatives
JPMorgan Diversified Return International Equity ETF is a reasonable option for investors seeking to outperform the 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 $54.49 billion in assets, Vanguard FTSE Developed Markets ETF has $109.11 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 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) made its debut on 11/06/2014, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix 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
JPIN is managed by J.P. Morgan, and this fund has amassed over $663.17 million, which makes it one of the larger ETFs in the World ETFs. JPIN, before fees and expenses, 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.
Operating expenses on an annual basis are 0.37% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.80%.
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.
When you look at individual holdings, Lenovo Group Ltd Common accounts for about 0.48% of the fund's total assets, followed by Sembcorp Industries Ltd (SCI - Free Report) and Bae Systems Plc Common (BA.).
The top 10 holdings account for about 4.37% of total assets under management.
Performance and Risk
Year-to-date, the JPMorgan Diversified Return International Equity ETF has gained about 5.43% so far, and is down about -0.99% over the last 12 months (as of 05/26/2023). JPIN has traded between $42.35 and $54.55 in this past 52-week period.
The fund has a beta of 0.80 and standard deviation of 15.75% for the trailing three-year period, which makes JPIN a medium risk choice in this particular space. With about 470 holdings, it effectively diversifies company-specific risk.
Alternatives
JPMorgan Diversified Return International Equity ETF is a reasonable option for investors seeking to outperform the 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 $54.49 billion in assets, Vanguard FTSE Developed Markets ETF has $109.11 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 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.