IJH vs. JPST: What’s The Difference?

The iShares Core S&P Mid-Cap ETF (IJH) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between IJH and JPST? And which fund is better?

The expense ratio of IJH is 0.13 percentage points lower than JPST’s (0.05% vs. 0.18%). IJH also has a high exposure to the industrials sector while JPST is mostly comprised of A bonds. Overall, IJH has provided higher returns than JPST over the past ten years.

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

Summary

IJH JPST
Name iShares Core S&P Mid-Cap ETF JPMorgan Ultra-Short Income ETF
Category Mid-Cap Blend Ultrashort Bond
Issuer iShares JPMorgan
AUM 63.4B 17.32B
Avg. Return 13.50% 2.57%
Div. Yield 1.07% 0.94%
Expense Ratio 0.05% 0.18%

The iShares Core S&P Mid-Cap ETF (IJH) is a Mid-Cap Blend fund that is issued by iShares. It currently has 63.4B total assets under management and has yielded an average annual return of 13.50% over the past 10 years. The fund has a dividend yield of 1.07% 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%.

IJH’s dividend yield is 0.13% higher than that of JPST (1.07% vs. 0.94%). Also, IJH yielded on average 10.93% more per year over the past decade (13.50% vs. 2.57%). The expense ratio of IJH is 0.13 percentage points lower than JPST’s (0.05% vs. 0.18%).

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Fund Composition

Holdings

IJH - Holdings

IJH Holdings Weight
Bio-Techne Corp 0.8%
Molina Healthcare Inc 0.68%
Cognex Corp 0.68%
Fair Isaac Corp 0.64%
Camden Property Trust 0.62%
XPO Logistics Inc 0.6%
Masimo Corp 0.59%
SolarEdge Technologies Inc 0.57%
FactSet Research Systems Inc 0.57%
Graco Inc 0.56%

IJH’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and Camden Property Trust at 0.8%, 0.68%, 0.68%, 0.64%, and 0.62%.

XPO Logistics Inc (0.6%), Masimo Corp (0.59%), and SolarEdge Technologies Inc (0.57%) have a slightly smaller but still significant weight. FactSet Research Systems Inc and Graco Inc are also represented in the IJH’s holdings at 0.57% and 0.56%.

JPST - Holdings

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.

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Risk Analysis

IJH JPST
Mean Return 1.13 0
R-squared 86.39 0
Std. Deviation 16.8 0
Alpha -4.01 0
Beta 1.15 0
Sharpe Ratio 0.77 0
Treynor Ratio 10.55 0

The iShares Core S&P Mid-Cap ETF (IJH) has a Standard Deviation of 16.8 with a Sharpe Ratio of 0.77 and a Mean Return of 1.13. Its R-squared is 86.39 while IJH’s Treynor Ratio is 10.55. Furthermore, the fund has a Beta of 1.15 and a Alpha of -4.01.

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

IJH’s Mean Return is 1.13 points higher than that of JPST and its R-squared is 86.39 points higher. With a Standard Deviation of 16.8, IJH is slightly more volatile than JPST. The Alpha and Beta of IJH are 4.01 points lower and 1.15 points higher than JPST’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. JPST - Annual Returns

Year IJH JPST
2020 13.61% 2.17%
2019 26.14% 3.36%
2018 -11.14% 2.19%
2017 16.19% 0.0%
2016 20.63% 0.0%
2015 -2.23% 0.0%
2014 9.64% 0.0%
2013 33.4% 0.0%
2012 17.76% 0.0%
2011 -1.89% 0.0%
2010 26.38% 0.0%

IJH had its best year in 2013 with an annual return of 33.4%. IJH’s worst year over the past decade yielded -11.14% and occurred in 2018. In most years the iShares Core S&P Mid-Cap ETF provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 13.61%, 16.19%, and 17.76% 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

IJH vs. JPST - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $12,734 13.50%
JPST $10,000 $10,791 2.57%

A $10,000 investment in IJH would have resulted in a final balance of $12,734. This is a profit of $2,734 over 3 years and amounts to a compound annual growth rate (CAGR) of 13.50%.

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%.

IJH’s CAGR is 10.93 percentage points higher than that of JPST and as a result, would have yielded $1,943 more on a $10,000 investment. Thus, IJH outperformed JPST by 10.93% annually.


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