Last year, a bellwether exchange traded fund (ETF) tracking the MSCI EAFE Index surged 31. 6% while the biggest S&P 500-dedicated ETF gained “just” 17. 8%, marking the first time in a long time that international stocks beat domestic peers.

To add to the international ebullience, that MSCI EAFE-tracking ETF was 200 basis points less volatile than the S&P 500 on annualized basis. So it’s understandable that advisors and retail investors are alike are renewing their affinity for ex-US stocks and the related ETFs. Speaking of international ETFs, advisors have more to pick from thanks to some recent launches.

Enter the JPMorgan International Dynamic ETF (NYSE: JIDE), which debuted on Wednesday, Jan. 28. That new ETF is actively managed, adding to the issuer’s status as the largest issuer of such ETFs and extending what’s an interesting rivalry with another firm. Think of the new ETF as an actively managed spin on MSCI EAFE-tracking index funds and passive ETFs.

JIDE Details

JIDE is a large-cap blend fund, though it holds some mid-cap names and it’s not limited at the sector level or by various investment styles.

“JIDE is designed to give investors a dynamic edge in the Foreign Large Blend category, which is a vital building block for many U. S. investors now increasing global diversification," said Travis Spence, Global Head of ETFs at J. P. Morgan Asset Management, in a statement. "JIDE stands out by leveraging our global research and the expertise of our seasoned portfolio managers, offering a flexible, best-ideas approach to international investing that's built to navigate changing markets. "

The new ETF has 108 long positions – a small number compared to passive ETFs in this category. However, concentration risk isn’t a concern as JIDE’s top 10 holdings range in weight from 1. 58% to 3. 39%, confirming a well-balanced portfolio.

As is the case with many diversified international developed markets funds, JIDE has a value feel to it due to a combined 52. 2% weight to financial services, industrial and healthcare stocks, but as noted above, the new ETF isn’t limited to value or any other factor.

Japan, a good place to be these days, is JIDE’s largest country weight at 23. 6%, but developed Europe will do the heavy lifting because that region accounts for two-thirds of the portfolio. That’s something for advisors and investors to consider because European stocks are still undervalued relative to the U. S. and because consensus wisdom indicates the 2025 rebounds notched by European stocks could be the start of something more substantial.

Bright Outlook for JIDE

Time will tell how successful J. P. Morgan’s newest ETF will be, but it can be said that right out of the gate, JIDE has the makings of a winner. Notably, its investment objective is neither hyper-focused nor opaque, meaning it should escape some of the criticism attached to some new ETFs.

Additionally, it has favorable DNA both at the issuer and manager levels – factors that could help it avoid the struggles encountered by so many new ETFs.

JIDE charges 0. 55% per year, or $55 on a $10,000 investment, which is decent among actively managed international equity ETFs.