The JPMorgan Diversified Return International Equity ETF (JPIN) made its debut on 11/06/2014, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Value ETF 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 work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
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 $368.33 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.37%.
JPIN's 12-month trailing dividend yield is 4.08%.
Sector Exposure and Top Holdings
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.
Taking into account individual holdings, Inpex Corp Common Stockaccounts for about 0.46% of the fund's total assets, followed by Otsuka Holdings Co Ltd and Electric Power.
Its top 10 holdings account for approximately 4.48% of JPIN's total assets under management.
Performance and Risk
So far this year, JPIN has added roughly 10.43%, and is up roughly 24.41% in the last one year (as of 06/02/2026). During this past 52-week period, the fund has traded between $62.93 and $76.97.
JPIN has a beta of 0.67 and standard deviation of 13.47% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 472 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 $19.33 billion in assets, Schwab Fundamental International Equity ETF has $24.72 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
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JPMorgan Diversified Return International Equity ETF (JPIN): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).