J.P. Morgan Chase (NYSE: JPM), the Wall Street banking giant, continues expanding its lineup of exchange traded funds, this time with an eye toward international markets with the introduction of the JPMorgan Diversified Return International Equity ETF (NYSEArca: JPIN).
Like its predecessor, the JPMorgan Diversified Return Global Equity ETF (NYSEArca: JPGE), JPIN tracks a FTSE Group index. The new ETF tracks the FTSE Developed ex North America Diversified Factor Index. [A Look J.P. Morgan’s New ETF]
“JPIN, like its predecessor JPGE, is designed to provide investors the opportunity to seek enhanced risk-adjusted returns through an ETF, and to help financial advisors keep clients invested in equities over the long term,” said J.P. Morgan in a statement.
On the upcoming webcast, Beyond Market Cap Investing: Strategic Beta ETFs, J.P. Morgan Asset Management’s Dr. David Kelly, Chief Global Strategist and Head of Global Market Insights Strategy Team, Robert Deutsch, Managing Director and Global Head of ETFs, Nigel Emmett, Managing Director and Senior Client Portfolio Manager for Global Equities Team, and Timothy Devlin, Executive Director and Client Portfolio Manager on Global Equities Team, help describe the investment environment for the international market and point to strategic-beta index-based strategies to best capture returns.
JPIN, which like JPGE fits the bill as a smart beta ETF, is managed by portfolio managers Ido Eisenberg, Demetris Georghiou and James Cook.
The FTSE Developed ex North America Diversified Factor Index is a multi-factor index that includes monthly rebalancing, liquidity screens, and turnover constraints, according to J.P. Morgan.
No holding accounts for more than 0.98% of JPIN’s weight and the ETF’s 335 holdings include some of largest companies based outside the U.S. JPIN’s top-10 holdings include Royal Dutch Shell (NYSE: RDS-A), BP (NYSE: BP), Samsung, GlaxoSmithKline (NYSE: GSK), British American Tobacco (NYSE: BATS), BHP Billiton (NYSE: BHP), AstraZeneca (NYSE: AZN) and Vodafone (NasdaqGS: VOD).
Those holdings, which are spread across 40 regional sectors, indicate JPIN’s approach to strategic beta offers exposure to the quality and value factors.