The iShares Russell 1000 Growth ETF (IWF) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between IWF and JPST? And which fund is better?
The expense ratio of IWF is 0.01 percentage points higher than JPST’s (0.19% vs. 0.18%). IWF also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, IWF has provided higher returns than JPST over the past ten years.
In this article, we’ll compare IWF vs. JPST. We’ll look at risk metrics and holdings, as well as at their fund composition and annual returns. Moreover, I’ll also discuss IWF’s and JPST’s portfolio growth, performance, and industry exposure and examine how these affect their overall returns.
Summary
| IWF | JPST | |
| Name | iShares Russell 1000 Growth ETF | JPMorgan Ultra-Short Income ETF |
| Category | Large Growth | Ultrashort Bond |
| Issuer | iShares | JPMorgan |
| AUM | 72.16B | 17.32B |
| Avg. Return | 17.72% | 2.57% |
| Div. Yield | 0.52% | 0.94% |
| Expense Ratio | 0.19% | 0.18% |
The iShares Russell 1000 Growth ETF (IWF) is a Large Growth fund that is issued by iShares. It currently has 72.16B total assets under management and has yielded an average annual return of 17.72% over the past 10 years. The fund has a dividend yield of 0.52% 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%.
IWF’s dividend yield is 0.42% lower than that of JPST (0.52% vs. 0.94%). Also, IWF yielded on average 15.15% more per year over the past decade (17.72% vs. 2.57%). The expense ratio of IWF is 0.01 percentage points higher than JPST’s (0.19% vs. 0.18%).
Fund Composition
Holdings
| IWF Holdings | Weight |
| Apple Inc | 10.51% |
| Microsoft Corp | 9.85% |
| Amazon.com Inc | 6.63% |
| Facebook Inc Class A | 3.91% |
| Alphabet Inc Class A | 3.2% |
| Alphabet Inc Class C | 3.03% |
| Tesla Inc | 2.45% |
| NVIDIA Corp | 2.14% |
| Visa Inc Class A | 1.91% |
| The Home Depot Inc | 1.62% |
IWF’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 10.51%, 9.85%, 6.63%, 3.91%, and 3.2%.
Alphabet Inc Class C (3.03%), Tesla Inc (2.45%), and NVIDIA Corp (2.14%) have a slightly smaller but still significant weight. Visa Inc Class A and The Home Depot Inc are also represented in the IWF’s holdings at 1.91% and 1.62%.
| 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
| IWF | JPST | |
| Mean Return | 1.48 | 0 |
| R-squared | 92.93 | 0 |
| Std. Deviation | 14.42 | 0 |
| Alpha | 2.16 | 0 |
| Beta | 1.03 | 0 |
| Sharpe Ratio | 1.19 | 0 |
| Treynor Ratio | 17.1 | 0 |
The iShares Russell 1000 Growth ETF (IWF) has a R-squared of 92.93 with a Standard Deviation of 14.42 and a Treynor Ratio of 17.1. Its Beta is 1.03 while IWF’s Sharpe Ratio is 1.19. Furthermore, the fund has a Alpha of 2.16 and a Mean Return of 1.48.
The JPMorgan Ultra-Short Income ETF (JPST) has a Beta of 0 with a Treynor Ratio of 0 and a R-squared of 0. Its Standard Deviation is 0 while JPST’s Alpha is 0. Furthermore, the fund has a Mean Return of 0 and a Sharpe Ratio of 0.
IWF’s Mean Return is 1.48 points higher than that of JPST and its R-squared is 92.93 points higher. With a Standard Deviation of 14.42, IWF is slightly more volatile than JPST. The Alpha and Beta of IWF are 2.16 points higher and 1.03 points higher than JPST’s Alpha and Beta.
Performance
Annual Returns
| Year | IWF | JPST |
| 2020 | 38.21% | 2.17% |
| 2019 | 36.08% | 3.36% |
| 2018 | -1.68% | 2.19% |
| 2017 | 29.96% | 0.0% |
| 2016 | 6.92% | 0.0% |
| 2015 | 5.48% | 0.0% |
| 2014 | 12.84% | 0.0% |
| 2013 | 33.19% | 0.0% |
| 2012 | 15.03% | 0.0% |
| 2011 | 2.47% | 0.0% |
| 2010 | 16.47% | 0.0% |
IWF had its best year in 2020 with an annual return of 38.21%. IWF’s worst year over the past decade yielded -1.68% and occurred in 2018. In most years the iShares Russell 1000 Growth ETF provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 12.84%, 15.03%, and 16.47% 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 |
| IWF | $10,000 | $18,491 | 17.72% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in IWF would have resulted in a final balance of $18,491. This is a profit of $8,491 over 3 years and amounts to a compound annual growth rate (CAGR) of 17.72%.
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%.
IWF’s CAGR is 15.15 percentage points higher than that of JPST and as a result, would have yielded $7,700 more on a $10,000 investment. Thus, IWF outperformed JPST by 15.15% annually.
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