Yahoo Finance Is JPMorgan Diversified Return International Equity ETF (JPIN) a Strong ETF Right Now?
The JPMorgan Diversified Return International Equity ETF (JPIN) 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?
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 offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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
Managed by J.P. Morgan, JPIN has amassed assets over $359.52 million, making it one of the average sized ETFs in the Broad Developed World ETFs. JPIN 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.37%.
It has a 12-month trailing dividend yield of 4.81%.
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, Astrazeneca Plc Common (AZN) accounts for about 0.49% of total assets, followed by Hsbc Holdings Plc Common (HSBA) and 3i Group Plc Common (III).
JPIN's top 10 holdings account for about 4.67% of its total assets under management.
Performance and Risk
So far this year, JPIN has added roughly 4.90%, and was up about 14.67% in the last one year (as of 07/09/2024). During this past 52-week period, the fund has traded between $48.36 and $57.66.
The fund has a beta of 0.81 and standard deviation of 14.45% for the trailing three-year period, which makes JPIN a medium risk choice in this particular space. With about 496 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) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $73.53 billion in assets, Vanguard FTSE Developed Markets ETF has $134.94 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.
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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JPMorgan Diversified Return International Equity ETF (JPIN): ETF Research Reports
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Information Services Group, Inc. (III) : Free Stock Analysis Report
Vanguard FTSE Developed Markets ETF (VEA): ETF Research Reports
Vanguard Total International Stock ETF (VXUS): ETF Research Reports
