The iShares Russell Mid-Cap ETF (IWR) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between IWR and JPST? And which fund is better?
The expense ratio of IWR is 0.01 percentage points higher than JPST’s (0.19% vs. 0.18%). IWR also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, IWR has provided higher returns than JPST over the past ten years.
In this article, we’ll compare IWR vs. JPST. We’ll look at fund composition and portfolio growth, as well as at their performance and risk metrics. Moreover, I’ll also discuss IWR’s and JPST’s annual returns, industry exposure, and holdings and examine how these affect their overall returns.
Summary
| IWR | JPST | |
| Name | iShares Russell Mid-Cap ETF | JPMorgan Ultra-Short Income ETF |
| Category | Mid-Cap Blend | Ultrashort Bond |
| Issuer | iShares | JPMorgan |
| AUM | 29.84B | 17.32B |
| Avg. Return | 14.15% | 2.57% |
| Div. Yield | 0.99% | 0.94% |
| Expense Ratio | 0.19% | 0.18% |
The iShares Russell Mid-Cap ETF (IWR) is a Mid-Cap Blend fund that is issued by iShares. It currently has 29.84B total assets under management and has yielded an average annual return of 14.15% over the past 10 years. The fund has a dividend yield of 0.99% 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%.
IWR’s dividend yield is 0.05% higher than that of JPST (0.99% vs. 0.94%). Also, IWR yielded on average 11.58% more per year over the past decade (14.15% vs. 2.57%). The expense ratio of IWR is 0.01 percentage points higher than JPST’s (0.19% vs. 0.18%).
Fund Composition
Holdings
| IWR Holdings | Weight |
| IDEXX Laboratories Inc | 0.51% |
| DocuSign Inc | 0.51% |
| Twitter Inc | 0.48% |
| Chipotle Mexican Grill Inc | 0.47% |
| Roku Inc Class A | 0.44% |
| Marvell Technology Inc | 0.44% |
| DexCom Inc | 0.44% |
| Trane Technologies PLC | 0.43% |
| MSCI Inc | 0.43% |
| Carrier Global Corp Ordinary Shares | 0.43% |
IWR’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Twitter Inc, Chipotle Mexican Grill Inc, and Roku Inc Class A at 0.51%, 0.51%, 0.48%, 0.47%, and 0.44%.
Marvell Technology Inc (0.44%), DexCom Inc (0.44%), and Trane Technologies PLC (0.43%) have a slightly smaller but still significant weight. MSCI Inc and Carrier Global Corp Ordinary Shares are also represented in the IWR’s holdings at 0.43% and 0.43%.
| 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
| IWR | JPST | |
| Mean Return | 1.17 | 0 |
| R-squared | 91.52 | 0 |
| Std. Deviation | 15.66 | 0 |
| Alpha | -2.8 | 0 |
| Beta | 1.11 | 0 |
| Sharpe Ratio | 0.86 | 0 |
| Treynor Ratio | 11.72 | 0 |
The iShares Russell Mid-Cap ETF (IWR) has a Mean Return of 1.17 with a R-squared of 91.52 and a Alpha of -2.8. Its Sharpe Ratio is 0.86 while IWR’s Beta is 1.11. Furthermore, the fund has a Standard Deviation of 15.66 and a Treynor Ratio of 11.72.
The JPMorgan Ultra-Short Income ETF (JPST) has a Beta of 0 with a Treynor Ratio of 0 and a Alpha of 0. Its Sharpe Ratio is 0 while JPST’s R-squared is 0. Furthermore, the fund has a Standard Deviation of 0 and a Mean Return of 0.
IWR’s Mean Return is 1.17 points higher than that of JPST and its R-squared is 91.52 points higher. With a Standard Deviation of 15.66, IWR is slightly more volatile than JPST. The Alpha and Beta of IWR are 2.80 points lower and 1.11 points higher than JPST’s Alpha and Beta.
Performance
Annual Returns
| Year | IWR | JPST |
| 2020 | 16.91% | 2.17% |
| 2019 | 30.31% | 3.36% |
| 2018 | -9.13% | 2.19% |
| 2017 | 18.32% | 0.0% |
| 2016 | 13.58% | 0.0% |
| 2015 | -2.57% | 0.0% |
| 2014 | 13.03% | 0.0% |
| 2013 | 34.5% | 0.0% |
| 2012 | 17.13% | 0.0% |
| 2011 | -1.67% | 0.0% |
| 2010 | 25.25% | 0.0% |
IWR had its best year in 2013 with an annual return of 34.5%. IWR’s worst year over the past decade yielded -9.13% and occurred in 2018. In most years the iShares Russell Mid-Cap ETF provided moderate returns such as in 2016, 2020, and 2012 where annual returns amounted to 13.58%, 16.91%, and 17.13% 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 |
| IWR | $10,000 | $13,843 | 14.15% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in IWR would have resulted in a final balance of $13,843. This is a profit of $3,843 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.15%.
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%.
IWR’s CAGR is 11.58 percentage points higher than that of JPST and as a result, would have yielded $3,052 more on a $10,000 investment. Thus, IWR outperformed JPST by 11.58% annually.
Current recommendations:
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.
I believe that money is just a means to an end: to be free to spend your time as you wish, to maximize your positive impact on the world.
