The ARK Innovation ETF (ARKK) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. ARKK is a ARK ETF Trust Mid-Cap Growth fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between ARKK and JPST? And which fund is better?
The expense ratio of ARKK is 0.57 percentage points higher than JPST’s (0.75% vs. 0.18%). ARKK also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, ARKK has provided higher returns than JPST over the past 3 years.
In this article, we’ll compare ARKK vs. JPST. We’ll look at industry exposure and risk metrics, as well as at their portfolio growth and performance. Moreover, I’ll also discuss ARKK’s and JPST’s annual returns, fund composition, and holdings and examine how these affect their overall returns.
Summary
| ARKK | JPST | |
| Name | ARK Innovation ETF | JPMorgan Ultra-Short Income ETF |
| Category | Mid-Cap Growth | Ultrashort Bond |
| Issuer | ARK ETF Trust | JPMorgan |
| AUM | 25.52B | 17.32B |
| Avg. Return | 55.45% | 2.57% |
| Div. Yield | 0.0% | 0.94% |
| Expense Ratio | 0.75% | 0.18% |
The ARK Innovation ETF (ARKK) is a Mid-Cap Growth fund that is issued by ARK ETF Trust. It currently has 25.52B total assets under management and has yielded an average annual return of 55.45% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.75%.
The JPMorgan Ultra-Short Income ETF (JPST) is a Ultrashort Bond fund that is issued by JPMorgan. It currently has 17.32B total assets under management and has yielded an average annual return of 2.57% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.18%.
ARKK’s dividend yield is 0.94% lower than that of JPST (0.0% vs. 0.94%). Also, ARKK yielded on average 52.88% more per year over the past decade (55.45% vs. 2.57%). The expense ratio of ARKK is 0.57 percentage points higher than JPST’s (0.75% vs. 0.18%).
Fund Composition
Holdings
| ARKK Holdings | Weight |
| Tesla Inc | 9.56% |
| Roku Inc Class A | 6.48% |
| Teladoc Health Inc | 5.76% |
| Square Inc A | 4.37% |
| Zoom Video Communications Inc | 4.36% |
| Shopify Inc A | 4.27% |
| Spotify Technology SA | 3.68% |
| Twilio Inc A | 3.66% |
| Coinbase Global Inc Ordinary Shares – Class A | 3.65% |
| Unity Software Inc Ordinary Shares | 3.41% |
ARKK’s Top Holdings are Tesla Inc, Roku Inc Class A, Teladoc Health Inc, Square Inc A, and Zoom Video Communications Inc at 9.56%, 6.48%, 5.76%, 4.37%, and 4.36%.
Shopify Inc A (4.27%), Spotify Technology SA (3.68%), and Twilio Inc A (3.66%) have a slightly smaller but still significant weight. Coinbase Global Inc Ordinary Shares – Class A and Unity Software Inc Ordinary Shares are also represented in the ARKK’s holdings at 3.65% and 3.41%.
| JPST Bond Sectors | Weight |
| A | 39.21% |
| BBB | 36.75% |
| AAA | 14.9% |
| AA | 9.14% |
| Others | 0.0% |
| Below B | 0.0% |
| B | 0.0% |
| BB | 0.0% |
| US Government | 0.0% |
JPST’s Top Bond Sectors are ratings of A, BBB, AAA, AA, and Others at 39.21%, 36.75%, 14.9%, 9.14%, and 0.0%. The fund is less weighted towards Below B (0.0%), B (0.0%), and BB (0.0%) rated bonds.
Risk Analysis
| ARKK | JPST | |
| Mean Return | 0 | 0 |
| R-squared | 0 | 0 |
| Std. Deviation | 0 | 0 |
| Alpha | 0 | 0 |
| Beta | 0 | 0 |
| Sharpe Ratio | 0 | 0 |
| Treynor Ratio | 0 | 0 |
The ARK Innovation ETF (ARKK) has a Sharpe Ratio of 0 with a Mean Return of 0 and a Alpha of 0. Its Standard Deviation is 0 while ARKK’s Treynor Ratio is 0. Furthermore, the fund has a Beta of 0 and a R-squared of 0.
The JPMorgan Ultra-Short Income ETF (JPST) has a Beta of 0 with a Standard Deviation of 0 and a Treynor Ratio of 0. Its Sharpe Ratio is 0 while JPST’s Alpha is 0. Furthermore, the fund has a Mean Return of 0 and a R-squared of 0.
ARKK’s Mean Return is 0.00 points lower than that of JPST and its R-squared is 0.00 points lower. With a Standard Deviation of 0, ARKK is slightly less volatile than JPST. The Alpha and Beta of ARKK are 0.00 points lower and 0.00 points lower than JPST’s Alpha and Beta.
Performance
Annual Returns
| Year | ARKK | JPST |
| 2020 | 152.52% | 2.17% |
| 2019 | 35.73% | 3.36% |
| 2018 | 3.58% | 2.19% |
| 2017 | 87.38% | 0.0% |
| 2016 | -1.96% | 0.0% |
| 2015 | 3.76% | 0.0% |
| 2014 | 0.0% | 0.0% |
| 2013 | 0.0% | 0.0% |
| 2012 | 0.0% | 0.0% |
| 2011 | 0.0% | 0.0% |
| 2010 | 0.0% | 0.0% |
ARKK had its best year in 2020 with an annual return of 152.52%. ARKK’s worst year over the past decade yielded -1.96% and occurred in 2016. In most years the ARK Innovation ETF provided moderate returns such as in 2011, 2010, and 2018 where annual returns amounted to 0.0%, 0.0%, and 3.58% respectively.
The year 2019 was the strongest year for JPST, returning 3.36% on an annual basis. The poorest year for JPST in the last ten years was 2017, with a yield of 0.0%. Most years the JPMorgan Ultra-Short Income ETF has given investors modest returns, such as in 2013, 2012, and 2011, when gains were 0.0%, 0.0%, and 0.0% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| ARKK | $10,000 | $35,501 | 55.45% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in ARKK would have resulted in a final balance of $35,501. This is a profit of $25,501 over 3 years and amounts to a compound annual growth rate (CAGR) of 55.45%.
With a $10,000 investment in JPST, the end total would have been $10,791. This equates to a $791 profit over 3 years and a compound annual growth rate (CAGR) of 2.57%.
ARKK’s CAGR is 52.88 percentage points higher than that of JPST and as a result, would have yielded $24,710 more on a $10,000 investment. Thus, ARKK outperformed JPST by 52.88% annually.
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