JPMorgan International Value ETF

JIVE

Market cap $1.92B

Obsidian CIO sold 466,417 shares of JIVE in the fourth quarter; the estimated trade value was $36.26 million based on quarterly average prices. Meanwhile, the quarter-end position value fell by $35.01 million, reflecting both the sale and price movement.

JIVE's active management, high portfolio turnover, and concentrated financials exposure drive alpha, with 1Y alpha at +12.3% versus peers and benchmarks. Forward P/E multiples for JIVE's core regions and sectors are near 90th percentile (according to my reworking of the data). This would limit a further multiple expansion and is therefore a negative pressure on the growth of JIVE's price.

Political and economic tensions, domestic headlines, currency flows and the Federal Reserve have all combined to reignite the “United States vs. international” investing debate.

This week's Undercovered Dozen highlights 12 lesser-followed stocks and funds, each with distinct catalysts or value opportunities. This week's edition covers articles published between Dec. 12 and Dec. 18, offering fresh investment ideas. The series aims to inspire discussion and help investors discover overlooked opportunities in the market.

JPMorgan International Value ETF has outperformed major U.S. and international peers, delivering over 36% returns in the past year. JIVE's actively managed strategy targets undervalued foreign large-value stocks, with a 0.55% expense ratio and a $1B+ AUM since its 2023 launch. The ETF's portfolio is concentrated in financials (36%), with significant EMEA and Asia ex-Japan exposure, and includes globally recognized holdings.

JIVE employs a quantitative- and behavioral-based selection process across developed and emerging markets, without market-cap bias, enabling flexible, diversified stock and geographical allocations. With ~340 holdings and Top 10 under 14%, JIVE balances market, sector, and geographic exposure, offering consistent value theme performance and agility across regions, including meaningful emerging-market allocations. Since inception, JIVE has outperformed peers by ~12 percentage points, driven by emerging-market and small-cap exposure, while maintaining drawdowns comparable to conservative international value ETFs.

IVAL ranks last among 41 International Equity Value ETFs. I rate it a Sell due to poor performance and lack of hedging. JIVE, ranked third, benefits from hedging, different country and sector allocations, and a higher percentage in financial services. IVAL's focus on mid-cap stocks and lack of hedging contribute to its underperformance compared to JIVE's diversified and hedged portfolio.