The iShares Core Dividend Growth ETF (DGRO) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. DGRO is a iShares Large Value fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between DGRO and JPST? And which fund is better?
The expense ratio of DGRO is 0.10 percentage points lower than JPST’s (0.08% vs. 0.18%). DGRO also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, DGRO has provided higher returns than JPST over the past 3 years.
In this article, we’ll compare DGRO 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 DGRO’s and JPST’s risk metrics, fund composition, and performance and examine how these affect their overall returns.
Summary
| DGRO | JPST | |
| Name | iShares Core Dividend Growth ETF | JPMorgan Ultra-Short Income ETF |
| Category | Large Value | Ultrashort Bond |
| Issuer | iShares | JPMorgan |
| AUM | 20B | 17.32B |
| Avg. Return | 12.46% | 2.57% |
| Div. Yield | 2.04% | 0.94% |
| Expense Ratio | 0.08% | 0.18% |
The iShares Core Dividend Growth ETF (DGRO) is a Large Value fund that is issued by iShares. It currently has 20B total assets under management and has yielded an average annual return of 12.46% over the past 10 years. The fund has a dividend yield of 2.04% 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%.
DGRO’s dividend yield is 1.10% higher than that of JPST (2.04% vs. 0.94%). Also, DGRO yielded on average 9.88% more per year over the past decade (12.46% vs. 2.57%). The expense ratio of DGRO is 0.10 percentage points lower than JPST’s (0.08% vs. 0.18%).
Fund Composition
Holdings
| DGRO Holdings | Weight |
| Microsoft Corp | 3.29% |
| Apple Inc | 3.26% |
| Pfizer Inc | 2.89% |
| Johnson & Johnson | 2.87% |
| Procter & Gamble Co | 2.79% |
| Verizon Communications Inc | 2.68% |
| JPMorgan Chase & Co | 2.57% |
| The Home Depot Inc | 2.35% |
| Merck & Co Inc | 2.11% |
| Cisco Systems Inc | 1.98% |
DGRO’s Top Holdings are Microsoft Corp, Apple Inc, Pfizer Inc, Johnson & Johnson, and Procter & Gamble Co at 3.29%, 3.26%, 2.89%, 2.87%, and 2.79%.
Verizon Communications Inc (2.68%), JPMorgan Chase & Co (2.57%), and The Home Depot Inc (2.35%) have a slightly smaller but still significant weight. Merck & Co Inc and Cisco Systems Inc are also represented in the DGRO’s holdings at 2.11% and 1.98%.
| 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
| DGRO | 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 iShares Core Dividend Growth ETF (DGRO) has a Mean Return of 0 with a Standard Deviation of 0 and a Treynor Ratio of 0. Its R-squared is 0 while DGRO’s Sharpe Ratio is 0. Furthermore, the fund has a Alpha of 0 and a Beta of 0.
The JPMorgan Ultra-Short Income ETF (JPST) has a Treynor Ratio of 0 with a R-squared of 0 and a Standard Deviation of 0. Its Beta is 0 while JPST’s Mean Return is 0. Furthermore, the fund has a Alpha of 0 and a Sharpe Ratio of 0.
DGRO’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, DGRO is slightly less volatile than JPST. The Alpha and Beta of DGRO are 0.00 points lower and 0.00 points lower than JPST’s Alpha and Beta.
Performance
Annual Returns
| Year | DGRO | JPST |
| 2020 | 9.47% | 2.17% |
| 2019 | 30.02% | 3.36% |
| 2018 | -2.24% | 2.19% |
| 2017 | 22.84% | 0.0% |
| 2016 | 15.27% | 0.0% |
| 2015 | -0.62% | 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% |
DGRO had its best year in 2019 with an annual return of 30.02%. DGRO’s worst year over the past decade yielded -2.24% and occurred in 2018. In most years the iShares Core Dividend Growth ETF provided moderate returns such as in 2012, 2011, and 2010 where annual returns amounted to 0.0%, 0.0%, and 0.0% 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 |
| DGRO | $10,000 | $13,914 | 12.46% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in DGRO would have resulted in a final balance of $13,914. This is a profit of $3,914 over 3 years and amounts to a compound annual growth rate (CAGR) of 12.46%.
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%.
DGRO’s CAGR is 9.88 percentage points higher than that of JPST and as a result, would have yielded $3,123 more on a $10,000 investment. Thus, DGRO outperformed JPST by 9.88% annually.
Current recommendations:
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.
I believe that money is just a means to an end: to be free to spend your time as you wish, to maximize your positive impact on the world.
