Designed to provide broad exposure to the Foreign Large Value ETF category of the market, the JPMorgan Diversified Return International Equity ETF (JPIN) is a smart beta exchange traded fund launched on 11/06/2014.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $383.61 million, this makes it one of the average sized ETFs in the Foreign Large Value ETF. JPIN is managed by J.P. Morgan. 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
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.
Operating expenses on an annual basis are 0.37% for JPIN, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.22%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Fresnillo Plc Common (FRES) accounts for about 0.53% of the fund's total assets, followed by Sk Hynix Inc Common (A000660) and Hsbc Holdings Plc Common (HSBA).
Its top 10 holdings account for approximately 4.69% of JPIN's total assets under management.
Performance and Risk
The ETF return is roughly 6.52% and it's up approximately 37.04% so far this year and in the past one year (as of 01/28/2026), respectively. JPIN has traded between $52.18 and $72.58 during this last 52-week period.
The ETF has a beta of 0.68 and standard deviation of 12.70% for the trailing three-year period, making it a medium risk choice in the space. With about 464 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 ETF (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 ETF has $15.89 billion in assets, Schwab Fundamental International Equity ETF has $21.15 billion. VYMI has an expense ratio of 0.17% 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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JPMorgan Diversified Return International Equity ETF (JPIN): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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