The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. ITOT is a iShares Large Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between ITOT and JPST? And which fund is better?
The expense ratio of ITOT is 0.15 percentage points lower than JPST’s (0.03% vs. 0.18%). ITOT also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, ITOT has provided higher returns than JPST over the past ten years.
In this article, we’ll compare ITOT vs. JPST. We’ll look at portfolio growth and annual returns, as well as at their holdings and risk metrics. Moreover, I’ll also discuss ITOT’s and JPST’s industry exposure, performance, and fund composition and examine how these affect their overall returns.
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Summary
| ITOT | JPST | |
| Name | iShares Core S&P Total U.S. Stock Market ETF | JPMorgan Ultra-Short Income ETF |
| Category | Large Blend | Ultrashort Bond |
| Issuer | iShares | JPMorgan |
| AUM | 41.97B | 17.32B |
| Avg. Return | 14.59% | 2.57% |
| Div. Yield | 1.2% | 0.94% |
| Expense Ratio | 0.03% | 0.18% |
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is a Large Blend fund that is issued by iShares. It currently has 41.97B total assets under management and has yielded an average annual return of 14.59% over the past 10 years. The fund has a dividend yield of 1.2% with an expense ratio of 0.03%.
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%.
ITOT’s dividend yield is 0.26% higher than that of JPST (1.2% vs. 0.94%). Also, ITOT yielded on average 12.02% more per year over the past decade (14.59% vs. 2.57%). The expense ratio of ITOT is 0.15 percentage points lower than JPST’s (0.03% vs. 0.18%).
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Fund Composition
Holdings
| ITOT Holdings | Weight |
| Apple Inc | 5.07% |
| Microsoft Corp | 4.75% |
| Amazon.com Inc | 3.16% |
| Facebook Inc Class A | 1.89% |
| Alphabet Inc Class A | 1.79% |
| Alphabet Inc Class C | 1.71% |
| Tesla Inc | 1.17% |
| Berkshire Hathaway Inc Class B | 1.17% |
| NVIDIA Corp | 1.08% |
| JPMorgan Chase & Co | 1.02% |
ITOT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.07%, 4.75%, 3.16%, 1.89%, and 1.79%.
Alphabet Inc Class C (1.71%), Tesla Inc (1.17%), and Berkshire Hathaway Inc Class B (1.17%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ITOT’s holdings at 1.08% and 1.02%.
| 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
| ITOT | JPST | |
| Mean Return | 1.27 | 0 |
| R-squared | 99.4 | 0 |
| Std. Deviation | 14.02 | 0 |
| Alpha | -0.54 | 0 |
| Beta | 1.03 | 0 |
| Sharpe Ratio | 1.04 | 0 |
| Treynor Ratio | 14.13 | 0 |
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has a Treynor Ratio of 14.13 with a R-squared of 99.4 and a Standard Deviation of 14.02. Its Alpha is -0.54 while ITOT’s Beta is 1.03. Furthermore, the fund has a Mean Return of 1.27 and a Sharpe Ratio of 1.04.
The JPMorgan Ultra-Short Income ETF (JPST) has a Sharpe Ratio of 0 with a Alpha of 0 and a Mean Return of 0. Its R-squared is 0 while JPST’s Standard Deviation is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Beta of 0.
ITOT’s Mean Return is 1.27 points higher than that of JPST and its R-squared is 99.40 points higher. With a Standard Deviation of 14.02, ITOT is slightly more volatile than JPST. The Alpha and Beta of ITOT are 0.54 points lower and 1.03 points higher than JPST’s Alpha and Beta.
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Performance
Annual Returns
| Year | ITOT | JPST |
| 2020 | 20.75% | 2.17% |
| 2019 | 30.87% | 3.36% |
| 2018 | -5.27% | 2.19% |
| 2017 | 21.23% | 0.0% |
| 2016 | 12.59% | 0.0% |
| 2015 | 0.96% | 0.0% |
| 2014 | 13.01% | 0.0% |
| 2013 | 32.67% | 0.0% |
| 2012 | 15.98% | 0.0% |
| 2011 | 1.55% | 0.0% |
| 2010 | 16.15% | 0.0% |
ITOT had its best year in 2013 with an annual return of 32.67%. ITOT’s worst year over the past decade yielded -5.27% and occurred in 2018. In most years the iShares Core S&P Total U.S. Stock Market ETF provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 13.01%, 15.98%, and 16.15% 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 |
| ITOT | $10,000 | $14,969 | 14.59% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in ITOT would have resulted in a final balance of $14,969. This is a profit of $4,969 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.59%.
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%.
ITOT’s CAGR is 12.02 percentage points higher than that of JPST and as a result, would have yielded $4,178 more on a $10,000 investment. Thus, ITOT outperformed JPST by 12.02% annually.
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