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JPMorgan Adds To BetaBuilders Lineup With Low-Cost International Equity ETF

ETF Professor

JPMorgan Chase's (NYSE: JPM) J.P. Morgan Asset Management (JPMAM) unit added to its burgeoning lineup of exchange traded funds Thursday with the debut of the JPMorgan BetaBuilders International Equity ETF (CBOE: BBIN).

As its name implies, BBIN is a member of JPMAM's BetaBuilders suite of ETFs, a group of low-cost, core funds that includes JPMorgan BetaBuilders U.S. Equity ETF (CBOE: BBUS), the least expensive domestic equity ETF; as well as the JPMorgan BetaBuilders Japan ETF (CBOE: BBJP) and the JPMorgan BetaBuilders Canada ETF (CBOE: BBCA).

BBJP and BBCA are two JPMAM's largest ETFs, combing for $8.44 billion in assets under management. Of the issuer's 10 largest ETFs, five, including BBJP and BBCA, are low-cost BetaBuilders products.

Why It's Important

With an annual fee of just 0.07%, or $7 on a $10,000 investment, BBIN keeps with the tradition of low BetaBuilders costs. Not only that, but the new fund immediately enters the conversation regarding least expensive international funds. Only a handful of international equity ETFs have lower annual fees than the new BBIN.

“BBIN has been designed to provide investors with efficient access to the almost $50 trillion global equities market, a core allocation for any diversified portfolio,” Joanna Gallegos, U.S. Head of ETFs at J.P. Morgan Asset Management, said in a statement. “BBIN gives investors broad, diversified access to the developed international equity market, at a fraction of the price of purchasing across individual markets.”

The new ETF tracks a Morningstar index that's comparable to the MSCI EAFE Index or the FTSE Developed Markets Index. BBIN excludes North American stocks, making it more of a direct competitor to MSCI EAFE-tracking funds.

What's Next

“The launch of BBIN demonstrates JPMorgan’s ability to leverage our scale and technology to efficiently access markets and pass these benefits onto investors,” Gallegos said. “Our BetaBuilders platform has a track record delivering precise, reliable performance across U.S. and international equity markets, and BBIN is building on this legacy by giving investors a straight-forward and cost-effective way to add equity exposure to their portfolio.”

With the addition of BBIN, JPMorgan offers 33 ETFs with over $30 billion in combined assets under management.

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