We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is JPMorgan Diversified Return International Equity ETF (JPIN) a Strong ETF Right Now?
Read MoreHide Full Article
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 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $351.29 million, this makes it one of the average sized ETFs in the World ETFs. JPIN is managed by J.P. Morgan. 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
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 this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.61%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Kansai Electric Power Co (9503.T) accounts for about 0.48% of the fund's total assets, followed by Posco Holdings Inc (A005490) and Sembcorp Industries Ltd (SCI - Free Report) .
JPIN's top 10 holdings account for about 4.64% of its total assets under management.
Performance and Risk
The ETF has gained about 3.03% so far this year and it's up approximately 17.16% in the last one year (as of 10/24/2023). In the past 52-week period, it has traded between $44 and $54.21.
The ETF has a beta of 0.80 and standard deviation of 15.04% 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 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 $54.44 billion in assets, Vanguard FTSE Developed Markets ETF has $105.36 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $351.29 million, this makes it one of the average sized ETFs in the World ETFs. JPIN is managed by J.P. Morgan. 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
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 this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.61%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Kansai Electric Power Co (9503.T) accounts for about 0.48% of the fund's total assets, followed by Posco Holdings Inc (A005490) and Sembcorp Industries Ltd (SCI - Free Report) .
JPIN's top 10 holdings account for about 4.64% of its total assets under management.
Performance and Risk
The ETF has gained about 3.03% so far this year and it's up approximately 17.16% in the last one year (as of 10/24/2023). In the past 52-week period, it has traded between $44 and $54.21.
The ETF has a beta of 0.80 and standard deviation of 15.04% 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 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 $54.44 billion in assets, Vanguard FTSE Developed Markets ETF has $105.36 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.