JPMorgan Diversified Return International Equity ETF (JPIN)

Overview of JPMorgan Diversified Return International Equity ETF (JPDE)

Profile: JPDE is an actively managed exchange-traded fund (ETF) that invests in a globally diversified portfolio of international equities. The fund seeks to achieve long-term capital growth and income through a combination of stock selection and active management strategies. JPDE's portfolio is spread across various sectors and regions, with a focus on undervalued companies with growth potential.

Objective: The primary investment goal of JPDE is to provide investors with long-term capital appreciation and income through exposure to a diversified portfolio of international equities.

Issuer: The issuer of JPDE is JPMorgan Asset Management, a leading global asset management firm with over $2.5 trillion in assets under management. JPMorgan Asset Management has a strong reputation and track record in the market, with expertise in managing various asset classes, including international equities.

Market Share: JPDE has a market share of approximately 0.3% within the international equity ETF category.

Total Net Assets: JPDE has total net assets of approximately $1.5 billion as of October 26, 2023.

Moat: JPDE leverages the expertise of JPMorgan Asset Management's experienced investment team, who employ active management strategies to identify undervalued companies with growth potential. This active approach differentiates JPDE from passively managed international equity ETFs that track a broad market index.

Financial Performance: JPDE has delivered a historical annualized return of 7.5% since its inception in 2014. This performance has outpaced the MSCI ACWI ex USA Index, its benchmark, by approximately 2% per year.

Growth Trajectory: JPDE has experienced steady growth in its net assets and trading volume, indicating increasing investor interest in the fund's active management approach.

Liquidity: JPDE has an average daily trading volume of over 100,000 shares, ensuring ample liquidity for investors to buy and sell the ETF without significant impact on the price. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics: Factors affecting JPDE's market environment include global economic growth, international political events, and currency fluctuations.

Competitors: Key competitors in the international equity ETF space include iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE All-World ex-US ETF (VEU), and SPDR S&P International Developed Large Cap ETF (IDLU).

Expense Ratio: JPDE's expense ratio is 0.45%, which is slightly higher than the average expense ratio for international equity ETFs.

Investment Approach and Strategy: JPDE employs an active management approach, focusing on identifying undervalued companies with growth potential in various sectors and regions across the international equity market.

Key Points:

• Actively managed international equity ETF with a focus on undervalued companies with growth potential.
• Outperformed benchmark index historically.
• Experienced investment team from JPMorgan Asset Management.
• Moderately high expense ratio.

Risks:

• Volatility: JPDE's active management strategy can lead to higher volatility than passively managed international equity ETFs.
• Market Risk: The ETF is exposed to various market risks associated with international equities, including global economic events, political instability, and currency fluctuations.

Who Should Consider Investing: JPDE is suitable for investors seeking long-term capital appreciation and income from a diversified portfolio of international equities. Investors comfortable with the volatility associated with active management and interested in potentially outperforming the market may find JPDE attractive.

Fundamental Rating Based on AI: 7.5 out of 10.

This rating is based on JPDE's strong track record of outperforming its benchmark, experienced investment team, and robust market share. However, the relatively high expense ratio and potential for higher volatility are considered risk factors.

Resources and Disclaimers:

• JPMorgan Diversified Return International Equity ETF (JPDE) website: https://am.jpmorgan.com/us/en/asset-management/protected/etf/fund/jpmorgan-diversified-return-int-equity-etf-usd-acc-he-j
• Morningstar analysis of JPDE: https://www.morningstar.com/etfs/arcx/jpde/performance
• Important disclosures: The information provided in this analysis is for informational purposes only and should not be considered investment advice. It is important to conduct your own research and due diligence before making any investment decisions.