The iShares Russell 1000 Value ETF (IWD) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. IWD is a iShares Large Value fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between IWD and JPST? And which fund is better?
The expense ratio of IWD is 0.01 percentage points higher than JPST’s (0.19% vs. 0.18%). IWD also has a high exposure to the financial services sector while JPST is mostly comprised of A bonds. Overall, IWD has provided higher returns than JPST over the past ten years.
In this article, we’ll compare IWD vs. JPST. We’ll look at risk metrics and annual returns, as well as at their holdings and performance. Moreover, I’ll also discuss IWD’s and JPST’s industry exposure, fund composition, and portfolio growth and examine how these affect their overall returns.
|Name||iShares Russell 1000 Value ETF||JPMorgan Ultra-Short Income ETF|
|Category||Large Value||Ultrashort Bond|
The iShares Russell 1000 Value ETF (IWD) is a Large Value fund that is issued by iShares. It currently has 54.1B total assets under management and has yielded an average annual return of 11.40% over the past 10 years. The fund has a dividend yield of 1.57% with an expense ratio of 0.19%.
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%.
IWD’s dividend yield is 0.63% higher than that of JPST (1.57% vs. 0.94%). Also, IWD yielded on average 8.83% more per year over the past decade (11.40% vs. 2.57%). The expense ratio of IWD is 0.01 percentage points higher than JPST’s (0.19% vs. 0.18%).
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|Berkshire Hathaway Inc Class B||2.58%|
|JPMorgan Chase & Co||2.25%|
|Johnson & Johnson||2.24%|
|UnitedHealth Group Inc||1.78%|
|Procter & Gamble Co||1.71%|
|The Walt Disney Co||1.5%|
|Bank of America Corp||1.43%|
|Comcast Corp Class A||1.33%|
|Exxon Mobil Corp||1.2%|
IWD’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.58%, 2.25%, 2.24%, 1.78%, and 1.71%.
The Walt Disney Co (1.5%), Bank of America Corp (1.43%), and Comcast Corp Class A (1.33%) have a slightly smaller but still significant weight. Exxon Mobil Corp and Pfizer Inc are also represented in the IWD’s holdings at 1.2% and 1.18%.
|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 Value ETF (IWD) has a Beta of 1.02 with a Treynor Ratio of 11.06 and a R-squared of 92.38. Its Alpha is -3.23 while IWD’s Sharpe Ratio is 0.81. Furthermore, the fund has a Mean Return of 1.03 and a Standard Deviation of 14.35.
The JPMorgan Ultra-Short Income ETF (JPST) has a R-squared of 0 with a Beta of 0 and a Alpha of 0. Its Standard Deviation is 0 while JPST’s Treynor Ratio is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Mean Return of 0.
IWD’s Mean Return is 1.03 points higher than that of JPST and its R-squared is 92.38 points higher. With a Standard Deviation of 14.35, IWD is slightly more volatile than JPST. The Alpha and Beta of IWD are 3.23 points lower and 1.02 points higher than JPST’s Alpha and Beta.
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IWD had its best year in 2013 with an annual return of 32.18%. IWD’s worst year over the past decade yielded -8.4% and occurred in 2018. In most years the iShares Russell 1000 Value ETF provided moderate returns such as in 2014, 2017, and 2010 where annual returns amounted to 13.21%, 13.47%, and 15.3% 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 IWD would have resulted in a final balance of $11,881. This is a profit of $1,881 over 3 years and amounts to a compound annual growth rate (CAGR) of 11.40%.
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%.
IWD’s CAGR is 8.83 percentage points higher than that of JPST and as a result, would have yielded $1,090 more on a $10,000 investment. Thus, IWD outperformed JPST by 8.83% annually.
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