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IVW vs. JPST: What’s The Difference?

The iShares S&P 500 Growth ETF (IVW) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. IVW is a iShares Large Growth fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between IVW and JPST? And which fund is better?

IVW and JPST have the same expense ratio: 0.18%. IVW also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, IVW has provided higher returns than JPST over the past ten years.

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

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Summary

IVWJPST
NameiShares S&P 500 Growth ETFJPMorgan Ultra-Short Income ETF
CategoryLarge GrowthUltrashort Bond
IssueriSharesJPMorgan
AUM35.72B17.32B
Avg. Return16.74%2.57%
Div. Yield0.61%0.94%
Expense Ratio0.18%0.18%

The iShares S&P 500 Growth ETF (IVW) is a Large Growth fund that is issued by iShares. It currently has 35.72B total assets under management and has yielded an average annual return of 16.74% over the past 10 years. The fund has a dividend yield of 0.61% with an expense ratio of 0.18%.

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%.

IVW’s dividend yield is 0.33% lower than that of JPST (0.61% vs. 0.94%). Also, IVW yielded on average 14.16% more per year over the past decade (16.74% vs. 2.57%). IVW and JPST have the same expense ratio: 0.18%.

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Fund Composition

Holdings

IVW - Holdings

IVW HoldingsWeight
Apple Inc11.46%
Microsoft Corp10.75%
Amazon.com Inc7.14%
Facebook Inc Class A4.28%
Alphabet Inc Class A4.06%
Alphabet Inc Class C3.86%
Tesla Inc2.65%
NVIDIA Corp2.43%
PayPal Holdings Inc1.62%
Adobe Inc1.49%

IVW’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 11.46%, 10.75%, 7.14%, 4.28%, and 4.06%.

Alphabet Inc Class C (3.86%), Tesla Inc (2.65%), and NVIDIA Corp (2.43%) have a slightly smaller but still significant weight. PayPal Holdings Inc and Adobe Inc are also represented in the IVW’s holdings at 1.62% and 1.49%.

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

IVWJPST
Mean Return1.440
R-squared93.820
Std. Deviation13.770
Alpha2.190
Beta0.980
Sharpe Ratio1.210
Treynor Ratio17.240

The iShares S&P 500 Growth ETF (IVW) has a Mean Return of 1.44 with a Sharpe Ratio of 1.21 and a Standard Deviation of 13.77. Its Treynor Ratio is 17.24 while IVW’s Beta is 0.98. Furthermore, the fund has a Alpha of 2.19 and a R-squared of 93.82.

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

IVW’s Mean Return is 1.44 points higher than that of JPST and its R-squared is 93.82 points higher. With a Standard Deviation of 13.77, IVW is slightly more volatile than JPST. The Alpha and Beta of IVW are 2.19 points higher and 0.98 points higher than JPST’s Alpha and Beta.

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Performance

Annual Returns

IVW vs. JPST - Annual Returns

YearIVWJPST
202033.21%2.17%
201930.91%3.36%
2018-0.17%2.19%
201727.2%0.0%
20166.74%0.0%
20155.33%0.0%
201414.67%0.0%
201332.48%0.0%
201214.39%0.0%
20114.49%0.0%
201014.84%0.0%

IVW had its best year in 2020 with an annual return of 33.21%. IVW’s worst year over the past decade yielded -0.17% and occurred in 2018. In most years the iShares S&P 500 Growth ETF provided moderate returns such as in 2012, 2014, and 2010 where annual returns amounted to 14.39%, 14.67%, and 14.84% 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

IVW vs. JPST - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IVW$10,000$17,40816.74%
JPST$10,000$10,7912.57%

A $10,000 investment in IVW would have resulted in a final balance of $17,408. This is a profit of $7,408 over 3 years and amounts to a compound annual growth rate (CAGR) of 16.74%.

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%.

IVW’s CAGR is 14.16 percentage points higher than that of JPST and as a result, would have yielded $6,617 more on a $10,000 investment. Thus, IVW outperformed JPST by 14.16% annually.


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