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IWM vs. JPST: What’s The Difference?

The iShares Russell 2000 ETF (IWM) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. IWM is a iShares Small Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between IWM and JPST? And which fund is better?

The expense ratio of IWM is 0.01 percentage points higher than JPST’s (0.19% vs. 0.18%). IWM also has a high exposure to the healthcare sector while JPST is mostly comprised of A bonds. Overall, IWM has provided higher returns than JPST over the past ten years.

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

Introduction To Mutual Funds
Introduction To Mutual Funds
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Summary

IWMJPST
NameiShares Russell 2000 ETFJPMorgan Ultra-Short Income ETF
CategorySmall BlendUltrashort Bond
IssueriSharesJPMorgan
AUM66.48B17.32B
Avg. Return13.52%2.57%
Div. Yield0.86%0.94%
Expense Ratio0.19%0.18%

The iShares Russell 2000 ETF (IWM) is a Small Blend fund that is issued by iShares. It currently has 66.48B total assets under management and has yielded an average annual return of 13.52% over the past 10 years. The fund has a dividend yield of 0.86% 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%.

IWM’s dividend yield is 0.08% lower than that of JPST (0.86% vs. 0.94%). Also, IWM yielded on average 10.95% more per year over the past decade (13.52% vs. 2.57%). The expense ratio of IWM is 0.01 percentage points higher than JPST’s (0.19% vs. 0.18%).

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Fund Composition

Holdings

IWM - Holdings

IWM HoldingsWeight
AMC Entertainment Holdings Inc Class A0.52%
Intellia Therapeutics Inc0.33%
Crocs Inc0.3%
BlackRock Cash Funds Treasury SL Agency0.29%
Tenet Healthcare Corp0.26%
Lattice Semiconductor Corp0.26%
Tetra Tech Inc0.25%
II-VI Inc0.25%
EastGroup Properties Inc0.24%
Arrowhead Pharmaceuticals Inc0.24%

IWM’s Top Holdings are AMC Entertainment Holdings Inc Class A, Intellia Therapeutics Inc, Crocs Inc, BlackRock Cash Funds Treasury SL Agency, and Tenet Healthcare Corp at 0.52%, 0.33%, 0.3%, 0.29%, and 0.26%.

Lattice Semiconductor Corp (0.26%), Tetra Tech Inc (0.25%), and II-VI Inc (0.25%) have a slightly smaller but still significant weight. EastGroup Properties Inc and Arrowhead Pharmaceuticals Inc are also represented in the IWM’s holdings at 0.24% and 0.24%.

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

IWMJPST
Mean Return1.120
R-squared77.730
Std. Deviation18.870
Alpha-5.120
Beta1.230
Sharpe Ratio0.680
Treynor Ratio9.560

The iShares Russell 2000 ETF (IWM) has a Standard Deviation of 18.87 with a Treynor Ratio of 9.56 and a Mean Return of 1.12. Its Sharpe Ratio is 0.68 while IWM’s Beta is 1.23. Furthermore, the fund has a R-squared of 77.73 and a Alpha of -5.12.

The JPMorgan Ultra-Short Income ETF (JPST) has a Alpha of 0 with a Sharpe Ratio 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.

IWM’s Mean Return is 1.12 points higher than that of JPST and its R-squared is 77.73 points higher. With a Standard Deviation of 18.87, IWM is slightly more volatile than JPST. The Alpha and Beta of IWM are 5.12 points lower and 1.23 points higher than JPST’s Alpha and Beta.

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Performance

Annual Returns

IWM vs. JPST - Annual Returns

YearIWMJPST
202019.89%2.17%
201925.42%3.36%
2018-11.02%2.19%
201714.66%0.0%
201621.36%0.0%
2015-4.33%0.0%
20144.94%0.0%
201338.85%0.0%
201216.39%0.0%
2011-4.19%0.0%
201026.76%0.0%

IWM had its best year in 2013 with an annual return of 38.85%. IWM’s worst year over the past decade yielded -11.02% and occurred in 2018. In most years the iShares Russell 2000 ETF provided moderate returns such as in 2017, 2012, and 2020 where annual returns amounted to 14.66%, 16.39%, and 19.89% 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

IWM vs. JPST - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IWM$10,000$13,37913.52%
JPST$10,000$10,7912.57%

A $10,000 investment in IWM would have resulted in a final balance of $13,379. This is a profit of $3,379 over 3 years and amounts to a compound annual growth rate (CAGR) of 13.52%.

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%.

IWM’s CAGR is 10.95 percentage points higher than that of JPST and as a result, would have yielded $2,588 more on a $10,000 investment. Thus, IWM outperformed JPST by 10.95% annually.


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