The iShares Russell 1000 ETF (IWB) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. IWB is a iShares Large Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between IWB and JPST? And which fund is better?
The expense ratio of IWB is 0.03 percentage points lower than JPST’s (0.15% vs. 0.18%). IWB also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, IWB has provided higher returns than JPST over the past ten years.
In this article, we’ll compare IWB vs. JPST. We’ll look at holdings and industry exposure, as well as at their portfolio growth and annual returns. Moreover, I’ll also discuss IWB’s and JPST’s fund composition, risk metrics, and performance and examine how these affect their overall returns.
|Name||iShares Russell 1000 ETF||JPMorgan Ultra-Short Income ETF|
|Category||Large Blend||Ultrashort Bond|
The iShares Russell 1000 ETF (IWB) is a Large Blend fund that is issued by iShares. It currently has 30.54B total assets under management and has yielded an average annual return of 14.64% over the past 10 years. The fund has a dividend yield of 1.14% with an expense ratio of 0.15%.
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%.
IWB’s dividend yield is 0.20% higher than that of JPST (1.14% vs. 0.94%). Also, IWB yielded on average 12.06% more per year over the past decade (14.64% vs. 2.57%). The expense ratio of IWB is 0.03 percentage points lower than JPST’s (0.15% vs. 0.18%).
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|Facebook Inc Class A||2.03%|
|Alphabet Inc Class A||1.93%|
|Alphabet Inc Class C||1.82%|
|Berkshire Hathaway Inc Class B||1.24%|
|JPMorgan Chase & Co||1.09%|
IWB’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.45%, 5.11%, 3.43%, 2.03%, and 1.93%.
Alphabet Inc Class C (1.82%), Tesla Inc (1.27%), and Berkshire Hathaway Inc Class B (1.24%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the IWB’s holdings at 1.11% and 1.09%.
|JPST Bond Sectors||Weight|
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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The iShares Russell 1000 ETF (IWB) has a Standard Deviation of 13.87 with a Beta of 1.02 and a Alpha of -0.38. Its Sharpe Ratio is 1.05 while IWB’s R-squared is 99.73. Furthermore, the fund has a Mean Return of 1.27 and a Treynor Ratio of 14.31.
The JPMorgan Ultra-Short Income ETF (JPST) has a Mean Return of 0 with a Standard Deviation of 0 and a Alpha of 0. Its R-squared is 0 while JPST’s Beta is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Treynor Ratio of 0.
IWB’s Mean Return is 1.27 points higher than that of JPST and its R-squared is 99.73 points higher. With a Standard Deviation of 13.87, IWB is slightly more volatile than JPST. The Alpha and Beta of IWB are 0.38 points lower and 1.02 points higher than JPST’s Alpha and Beta.
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IWB had its best year in 2013 with an annual return of 32.93%. IWB’s worst year over the past decade yielded -4.91% and occurred in 2018. In most years the iShares Russell 1000 ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.08%, 15.94%, and 16.27% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IWB would have resulted in a final balance of $15,077. This is a profit of $5,077 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.64%.
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%.
IWB’s CAGR is 12.06 percentage points higher than that of JPST and as a result, would have yielded $4,286 more on a $10,000 investment. Thus, IWB outperformed JPST by 12.06% annually.
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