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DIA vs. JPST: What’s The Difference?

The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between DIA and JPST? And which fund is better?

The expense ratio of DIA is 0.02 percentage points lower than JPST’s (0.16% vs. 0.18%). DIA also has a high exposure to the financial services sector while JPST is mostly comprised of A bonds. Overall, DIA has provided higher returns than JPST over the past ten years.

In this article, we’ll compare DIA vs. JPST. We’ll look at holdings and risk metrics, as well as at their annual returns and fund composition. Moreover, I’ll also discuss DIA’s and JPST’s performance, portfolio growth, and industry exposure and examine how these affect their overall returns.

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Summary

DIAJPST
NameSPDR Dow Jones Industrial Average ETF TrustJPMorgan Ultra-Short Income ETF
CategoryLarge ValueUltrashort Bond
IssuerSPDR State Street Global AdvisorsJPMorgan
AUM30.46B17.32B
Avg. Return13.35%2.57%
Div. Yield1.61%0.94%
Expense Ratio0.16%0.18%

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

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%.

DIA’s dividend yield is 0.67% higher than that of JPST (1.61% vs. 0.94%). Also, DIA yielded on average 10.78% more per year over the past decade (13.35% vs. 2.57%). The expense ratio of DIA is 0.02 percentage points lower than JPST’s (0.16% vs. 0.18%).

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Fund Composition

Holdings

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

JPST - Holdings

JPST Bond SectorsWeight
A39.21%
BBB36.75%
AAA14.9%
AA9.14%
Others0.0%
Below B0.0%
B0.0%
BB0.0%
US Government0.0%

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.

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Risk Analysis

DIAJPST
Mean Return1.130
R-squared93.310
Std. Deviation13.680
Alpha-0.940
Beta0.970
Sharpe Ratio0.940
Treynor Ratio13.070

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Beta of 0.97 with a Sharpe Ratio of 0.94 and a Treynor Ratio of 13.07. Its Mean Return is 1.13 while DIA’s Standard Deviation is 13.68. Furthermore, the fund has a R-squared of 93.31 and a Alpha of -0.94.

The JPMorgan Ultra-Short Income ETF (JPST) has a Alpha of 0 with a Beta of 0 and a Treynor Ratio of 0. Its Sharpe Ratio is 0 while JPST’s Mean Return is 0. Furthermore, the fund has a R-squared of 0 and a Standard Deviation of 0.

DIA’s Mean Return is 1.13 points higher than that of JPST and its R-squared is 93.31 points higher. With a Standard Deviation of 13.68, DIA is slightly more volatile than JPST. The Alpha and Beta of DIA are 0.94 points lower and 0.97 points higher than JPST’s Alpha and Beta.

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Performance

Annual Returns

DIA vs. JPST - Annual Returns

YearDIAJPST
20209.63%2.17%
201925.09%3.36%
2018-3.6%2.19%
201727.97%0.0%
201616.28%0.0%
20150.1%0.0%
20149.88%0.0%
201329.41%0.0%
201210.04%0.0%
20118.21%0.0%
201013.87%0.0%

DIA had its best year in 2013 with an annual return of 29.41%. DIA’s worst year over the past decade yielded -3.6% and occurred in 2018. In most years the SPDR Dow Jones Industrial Average ETF Trust provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 9.88%, 10.04%, and 13.87% 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

DIA vs. JPST - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
DIA$10,000$13,21913.35%
JPST$10,000$10,7912.57%

A $10,000 investment in DIA would have resulted in a final balance of $13,219. This is a profit of $3,219 over 3 years and amounts to a compound annual growth rate (CAGR) of 13.35%.

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%.

DIA’s CAGR is 10.78 percentage points higher than that of JPST and as a result, would have yielded $2,428 more on a $10,000 investment. Thus, DIA outperformed JPST by 10.78% annually.


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