JIVE ETF: Redefining Global Value Investing in the Next-Gen Era

In an era where global markets oscillate between growth optimism and macroeconomic uncertainty, value investing has reemerged as a compelling strategy. At the forefront of this revival is the JPMorgan International Value ETF (JIVE), a next-generation fund that is reshaping the landscape of international value investing. By blending traditional value principles with modern ESG considerations and active management, JIVE has carved out a unique niche, delivering robust returns while navigating the complexities of a post-pandemic global economy.

A Strategic Evolution: Active Management Meets ESG

JIVE's investment strategy is anchored in a bottom-up, research-driven approach, prioritizing companies with strong fundamentals trading at attractive valuations. Unlike passive strategies that mirror indices, JIVE's active management allows the team to overweight or underweight regions and sectors based on macroeconomic trends and valuation opportunities. For instance, the fund maintains a strategic overweight in developed Europe, the UK, and Japan—regions where value stocks have historically outperformed during periods of rising interest rates JPMorgan International Value ETF JIVE - Morningstar^[1]. Conversely, it underweights North America and emerging markets, reflecting a cautious stance on overvalued tech-driven economies and geopolitical risks JPMorgan International Value ETF JIVE - Morningstar^[1].

What sets JIVE apart is its integration of ESG factors into the value framework. While ESG investing is often associated with growth-oriented strategies, JIVE's managers, including Thomas Buckingham and Joyce Weng, have demonstrated that ESG metrics can enhance risk-adjusted returns in value portfolios. By screening for companies with strong governance structures and sustainable business models, the fund mitigates long-term risks while preserving its core value thesis JPMorgan International Value ETF JIVE - Morningstar^[1].

Performance: A Case for Risk-Adjusted Returns

JIVE's performance over the past year underscores its effectiveness. As of September 2025, the ETF delivered a 26.98% year-to-date return, significantly outpacing the ETF Database Category average of 6.27% JIVE ETF Guide | Stock Quote, Holdings, Fact Sheet and More^[2]. Over the past 12 months, it returned 25.88%, with a Sharpe ratio of 1.59—nearly double the S&P 500's Sharpe ratio of 0.84 JPMorgan International Value ETF JIVE - Morningstar^[1]. This metric highlights JIVE's ability to generate superior returns relative to its volatility, a critical advantage in a market where investors increasingly prioritize downside protection.

The fund's volatility, while higher than some peers (20-day volatility of 7.50%), is offset by its Sortino ratio of 2.07, which measures returns relative to downside risk JIVE ETF Guide | Stock Quote, Holdings, Fact Sheet and More^[2]. This suggests that JIVE's drawdowns, such as the 13.79% peak-to-trough decline in April 2025, are relatively short-lived and recover quickly, as evidenced by its 26.38% six-month return .

Diversification and Manager Expertise: The JIVE Edge

JIVE's portfolio is highly diversified, holding between 175–350 stocks, with the top 10 holdings accounting for just 12.5–12.85% of assets JPMorgan International Value ETF JIVE - Morningstar^[1]. This structure reduces concentration risk, a critical factor in volatile international markets. The fund's managers, including strategic overseer Michael Barakos, bring decades of experience in global value investing, enabling them to identify undervalued opportunities across geographies and sectors.

Notably, JIVE's focus on small- and mid-cap stocks (27.1% of assets) further differentiates it from broad-market international ETFs. These smaller companies often offer higher growth potential and are less influenced by short-term macroeconomic cycles, aligning with JIVE's long-term capital appreciation mandate JPMorgan International Value ETF JIVE - Morningstar^[1].

Market Positioning and Future Outlook

JIVE's 0.55% expense ratio places it in the medium range for international value ETFs, offering a cost-effective alternative to actively managed funds with higher fees JIVE ETF Guide | Stock Quote, Holdings, Fact Sheet and More^[2]. Its strong risk-adjusted performance has earned it an overall rank of 91, placing it in the top 9% of ETFs JIVE ETF Guide | Stock Quote, Holdings, Fact Sheet and More^[2]. As global markets continue to grapple with inflationary pressures and shifting monetary policies, JIVE's value-oriented approach—rooted in disciplined valuation and active risk management—positions it as a compelling option for investors seeking resilience and growth.

However, challenges remain. The fund's exposure to international markets, particularly in regions with political or economic instability, introduces currency and geopolitical risks. Investors must weigh these against JIVE's proven ability to navigate volatility while maintaining a focus on long-term value creation.

Conclusion

The JPMorgan International Value ETF is more than a next-gen fund—it is a paradigm shift in global value investing. By harmonizing traditional value principles with ESG integration, active management, and strategic diversification, JIVE has demonstrated that value investing can thrive in a modern, dynamic market. For investors seeking a balance of growth, risk mitigation, and ethical alignment, JIVE offers a compelling case for inclusion in a diversified portfolio.