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GLD vs. JPST: What’s The Difference?

The SPDR Gold Shares (GLD) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between GLD and JPST? And which fund is better?

The expense ratio of GLD is 0.22 percentage points higher than JPST’s (0.4% vs. 0.18%). GLD also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, GLD has provided higher returns than JPST over the past ten years.

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

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Summary

GLDJPST
NameSPDR Gold SharesJPMorgan Ultra-Short Income ETF
CategoryN/AUltrashort Bond
IssuerSPDR State Street Global AdvisorsJPMorgan
AUM59.26B17.32B
Avg. Return5.81%2.57%
Div. Yield0.0%0.94%
Expense Ratio0.4%0.18%

The SPDR Gold Shares (GLD) is a N/A fund that is issued by SPDR State Street Global Advisors. It currently has 59.26B total assets under management and has yielded an average annual return of 5.81% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.4%.

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%.

GLD’s dividend yield is 0.94% lower than that of JPST (0.0% vs. 0.94%). Also, GLD yielded on average 3.23% more per year over the past decade (5.81% vs. 2.57%). The expense ratio of GLD is 0.22 percentage points higher than JPST’s (0.4% vs. 0.18%).

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Fund Composition

Holdings

GLD - Holdings

GLD HoldingsWeight
Gold Trust100.0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%

GLD’s Top Holdings are Gold Trust, N/A, N/A, N/A, and N/A at 100.0%, 0%, 0%, 0%, and 0%.

N/A (0%), N/A (0%), and N/A (0%) have a slightly smaller but still significant weight. N/A and N/A are also represented in the GLD’s holdings at 0% and 0%.

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

GLDJPST
Mean Return0.210
R-squared16.210
Std. Deviation16.580
Alpha3.910
Beta0.480
Sharpe Ratio0.120
Treynor Ratio1.210

The SPDR Gold Shares (GLD) has a Treynor Ratio of 1.21 with a R-squared of 16.21 and a Beta of 0.48. Its Sharpe Ratio is 0.12 while GLD’s Standard Deviation is 16.58. Furthermore, the fund has a Mean Return of 0.21 and a Alpha of 3.91.

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

GLD’s Mean Return is 0.21 points higher than that of JPST and its R-squared is 16.21 points higher. With a Standard Deviation of 16.58, GLD is slightly more volatile than JPST. The Alpha and Beta of GLD are 3.91 points higher and 0.48 points higher than JPST’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. JPST - Annual Returns

YearGLDJPST
202023.68%2.17%
201918.36%3.36%
2018-1.54%2.19%
201711.41%0.0%
20168.69%0.0%
2015-11.78%0.0%
2014-0.58%0.0%
2013-28.09%0.0%
20125.26%0.0%
201111.2%0.0%
201027.25%0.0%

GLD had its best year in 2010 with an annual return of 27.25%. GLD’s worst year over the past decade yielded -28.09% and occurred in 2013. In most years the SPDR Gold Shares provided moderate returns such as in 2012, 2016, and 2011 where annual returns amounted to 5.26%, 8.69%, and 11.2% 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

GLD vs. JPST - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
GLD$10,000$14,4135.81%
JPST$10,000$10,7912.57%

A $10,000 investment in GLD would have resulted in a final balance of $14,413. This is a profit of $4,413 over 3 years and amounts to a compound annual growth rate (CAGR) of 5.81%.

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%.

GLD’s CAGR is 3.23 percentage points higher than that of JPST and as a result, would have yielded $3,622 more on a $10,000 investment. Thus, GLD outperformed JPST by 3.23% annually.


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