The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. BSV is a Vanguard Short-Term Bond fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between BSV and JPST? And which fund is better?
The expense ratio of BSV is 0.13 percentage points lower than JPST’s (0.05% vs. 0.18%). BSV is mostly comprised of AAA bonds and JPST has a high exposure to A bond. Overall, BSV has provided lower returns than JPST over the past ten years.
In this article, we’ll compare BSV vs. JPST. We’ll look at performance and fund composition, as well as at their annual returns and industry exposure. Moreover, I’ll also discuss BSV’s and JPST’s holdings, portfolio growth, and risk metrics and examine how these affect their overall returns.
Summary
| BSV | JPST | |
| Name | Vanguard Short-Term Bond Index Fund ETF Shares | JPMorgan Ultra-Short Income ETF |
| Category | Short-Term Bond | Ultrashort Bond |
| Issuer | Vanguard | JPMorgan |
| AUM | 67.71B | 17.32B |
| Avg. Return | 2.27% | 2.57% |
| Div. Yield | 1.48% | 0.94% |
| Expense Ratio | 0.05% | 0.18% |
The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) is a Short-Term Bond fund that is issued by Vanguard. It currently has 67.71B total assets under management and has yielded an average annual return of 2.27% over the past 10 years. The fund has a dividend yield of 1.48% with an expense ratio of 0.05%.
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%.
BSV’s dividend yield is 0.54% higher than that of JPST (1.48% vs. 0.94%). Also, BSV yielded on average 0.30% less per year over the past decade (2.27% vs. 2.57%). The expense ratio of BSV is 0.13 percentage points lower than JPST’s (0.05% vs. 0.18%).
Fund Composition
Holdings
| BSV Bond Sectors | Weight |
| AAA | 71.65% |
| BBB | 13.08% |
| A | 11.95% |
| AA | 3.28% |
| Others | 0.03% |
| Below B | 0.01% |
| B | 0.0% |
| BB | 0.0% |
| US Government | 0.0% |
BSV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 71.65%, 13.08%, 11.95%, 3.28%, and 0.03%. The fund is less weighted towards Below B (0.01%), B (0.0%), and BB (0.0%) rated bonds.
| 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
| BSV | JPST | |
| Mean Return | 0.16 | 0 |
| R-squared | 78.38 | 0 |
| Std. Deviation | 1.33 | 0 |
| Alpha | 0.21 | 0 |
| Beta | 0.38 | 0 |
| Sharpe Ratio | 0.98 | 0 |
| Treynor Ratio | 3.33 | 0 |
The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) has a Mean Return of 0.16 with a Standard Deviation of 1.33 and a Alpha of 0.21. Its Beta is 0.38 while BSV’s R-squared is 78.38. Furthermore, the fund has a Treynor Ratio of 3.33 and a Sharpe Ratio of 0.98.
The JPMorgan Ultra-Short Income ETF (JPST) has a Alpha of 0 with a Beta of 0 and a R-squared of 0. Its Standard Deviation is 0 while JPST’s Mean Return is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Treynor Ratio of 0.
BSV’s Mean Return is 0.16 points higher than that of JPST and its R-squared is 78.38 points higher. With a Standard Deviation of 1.33, BSV is slightly more volatile than JPST. The Alpha and Beta of BSV are 0.21 points higher and 0.38 points higher than JPST’s Alpha and Beta.
Performance
Annual Returns
| Year | BSV | JPST |
| 2020 | 4.67% | 2.17% |
| 2019 | 4.92% | 3.36% |
| 2018 | 1.34% | 2.19% |
| 2017 | 1.2% | 0.0% |
| 2016 | 1.42% | 0.0% |
| 2015 | 0.92% | 0.0% |
| 2014 | 1.32% | 0.0% |
| 2013 | 0.17% | 0.0% |
| 2012 | 1.98% | 0.0% |
| 2011 | 3.04% | 0.0% |
| 2010 | 4.0% | 0.0% |
BSV had its best year in 2019 with an annual return of 4.92%. BSV’s worst year over the past decade yielded 0.17% and occurred in 2013. In most years the Vanguard Short-Term Bond Index Fund ETF Shares provided moderate returns such as in 2018, 2016, and 2012 where annual returns amounted to 1.34%, 1.42%, and 1.98% 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 |
| BSV | $10,000 | $11,129 | 2.27% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in BSV would have resulted in a final balance of $11,129. This is a profit of $1,129 over 3 years and amounts to a compound annual growth rate (CAGR) of 2.27%.
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%.
BSV’s CAGR is 0.30 percentage points lower than that of JPST and as a result, would have yielded $338 more on a $10,000 investment. Thus, BSV performed worse than JPST by 0.30% annually.
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