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 Foreign Large Value ETF category of the market.
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader 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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
The fund is sponsored by J.P. Morgan. It has amassed assets over $325.08 million, making 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.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.37%.
The fund has a 12-month trailing dividend yield of 3.87%.
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.
Looking at individual holdings, Hanwha Aerospace Co Ltd (A012450) accounts for about 0.51% of total assets, followed by Hsbc Holdings Plc Common (HSBA) and Nitto Denko Corp Common (6988.T).
Its top 10 holdings account for approximately 4.56% of JPIN's total assets under management.
Year-to-date, the JPMorgan Diversified Return International Equity ETF has gained about 8.40% so far, and is up about 8.63% over the last 12 months (as of 03/17/2025). JPIN has traded between $52.75 and $60.82 in this past 52-week period.
The ETF has a beta of 0.79 and standard deviation of 14.51% for the trailing three-year period, making it a medium risk choice in the space. With about 491 holdings, it effectively diversifies company-specific risk.
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.
Dimensional International Value ETF (DFIV) tracks ---------------------------------------- and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Dimensional International Value ETF has $9.43 billion in assets, Schwab Fundamental International Equity ETF has $14.60 billion. DFIV has an expense ratio of 0.27% and FNDF charges 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.
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
Schwab Fundamental International Equity ETF (FNDF): ETF Research Reports
Dimensional International Value ETF (DFIV): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
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