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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 Foreign Large Value ETF category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

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.

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.

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

The fund is managed by J.P. Morgan, and has been able to amass over $375.69 million, which makes it one of the average sized ETFs in the Foreign Large Value ETF. This particular fund, 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 JPIN, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 4.27%.

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.

Looking at individual holdings, Oversea-chinese Banking (OCBC) accounts for about 0.51% of total assets, followed by Hana Financial Group Inc (A086790) and Hsbc Holdings Plc Common (HSBA).

Its top 10 holdings account for approximately 4.61% of JPIN's total assets under management.

Performance and Risk

Year-to-date, the JPMorgan Diversified Return International Equity ETF return is roughly 10.38% so far, and is up roughly 14.11% over the last 12 months (as of 10/06/2026). JPIN has traded between $64.96 $77.80 in this past 52-week period.

The fund has a beta of 0.68 and standard deviation of 13.54% for the trailing three-year period, which makes JPIN a medium risk choice in this particular space. With about 480 holdings, it effectively diversifies company-specific risk .

Alternatives

JPMorgan Diversified Return International Equity ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield Index Fund ETF Shares has $21.02 billion in assets, Schwab Fundamental International Equity ETF has $25.58 billion. VYMI has an expense ratio of 0.07% and FNDF changes 0.25%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF

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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