The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between BNDX and JPST? And which fund is better?
The expense ratio of BNDX is 0.10 percentage points lower than JPST’s (0.08% vs. 0.18%). BNDX is mostly comprised of A bonds and JPST has a high exposure to A bond. Overall, BNDX has provided higher returns than JPST over the past ten years.
In this article, we’ll compare BNDX vs. JPST. We’ll look at industry exposure and annual returns, as well as at their holdings and portfolio growth. Moreover, I’ll also discuss BNDX’s and JPST’s fund composition, risk metrics, and performance and examine how these affect their overall returns.
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|Name||Vanguard Total International Bond Index Fund ETF Shares||JPMorgan Ultra-Short Income ETF|
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) is a N/A fund that is issued by Vanguard. It currently has 116.41B total assets under management and has yielded an average annual return of 4.63% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.08%.
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%.
BNDX’s dividend yield is 0.00% lower than that of JPST (0.94% vs. 0.94%). Also, BNDX yielded on average 2.06% more per year over the past decade (4.63% vs. 2.57%). The expense ratio of BNDX is 0.10 percentage points lower than JPST’s (0.08% vs. 0.18%).
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|BNDX Bond Sectors||Weight|
BNDX’s Top Bond Sectors are ratings of A, AA, AAA, BBB, and Others at 29.19%, 26.79%, 21.59%, 19.41%, and 1.57%. The fund is less weighted towards Below B (1.45%), B (0.0%), and BB (0.0%) rated bonds.
|JPST Bond Sectors||Weight|
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.
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Sharpe Ratio of 0 with a Treynor Ratio of 0 and a Standard Deviation of 0. Its R-squared is 0 while BNDX’s Beta is 0. Furthermore, the fund has a Alpha of 0 and a Mean Return of 0.
The JPMorgan Ultra-Short Income ETF (JPST) has a Standard Deviation of 0 with a Beta of 0 and a R-squared of 0. Its Mean Return is 0 while JPST’s Sharpe Ratio is 0. Furthermore, the fund has a Alpha of 0 and a Treynor Ratio of 0.
BNDX’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, BNDX is slightly less volatile than JPST. The Alpha and Beta of BNDX are 0.00 points lower and 0.00 points lower than JPST’s Alpha and Beta.
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BNDX had its best year in 2014 with an annual return of 8.83%. BNDX’s worst year over the past decade yielded 0.0% and occurred in 2013. In most years the Vanguard Total International Bond Index Fund ETF Shares provided moderate returns such as in 2015, 2017, and 2018 where annual returns amounted to 1.08%, 2.4%, and 2.94% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in BNDX would have resulted in a final balance of $11,616. This is a profit of $1,616 over 3 years and amounts to a compound annual growth rate (CAGR) of 4.63%.
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%.
BNDX’s CAGR is 2.06 percentage points higher than that of JPST and as a result, would have yielded $825 more on a $10,000 investment. Thus, BNDX outperformed JPST by 2.06% annually.
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