A smart beta exchange traded fund, the JPMorgan Diversified Return International Equity ETF (JPIN) debuted on 11/06/2014, and offers broad exposure to the Broad Developed World ETFs category of the market.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
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.
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.
JPIN is managed by J.P. Morgan, and this fund has amassed over $305.89 million, which makes 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 is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.37% for JPIN, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.26%.
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
When you look at individual holdings, Hd Hyundai Electric Co accounts for about 0.46% of the fund's total assets, followed by Hanwha Aerospace Co Ltd (A012450) and Hsbc Holdings Plc Common (HSBA).
JPIN's top 10 holdings account for about 4.34% of its total assets under management.
Year-to-date, the JPMorgan Diversified Return International Equity ETF has lost about -1.34% so far, and it's up approximately 1.81% over the last 12 months (as of 01/14/2025). JPIN has traded between $52.64 and $60.82 in this past 52-week period.
The fund has a beta of 0.81 and standard deviation of 14.79% for the trailing three-year period, which makes JPIN a medium risk choice in this particular space. With about 476 holdings, it effectively diversifies company-specific risk.
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 $73.75 billion in assets, Vanguard FTSE Developed Markets ETF has $131.98 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.
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
Vanguard FTSE Developed Markets ETF (VEA): ETF Research Reports
Vanguard Total International Stock ETF (VXUS): ETF Research Reports
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