JPST vs. BIV: What’s The Difference?

The JPMorgan Ultra-Short Income ETF (JPST) and the Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and BIV is a Vanguard Intermediate-Term Bond fund. So, what’s the difference between JPST and BIV? And which fund is better?

The expense ratio of JPST is 0.13 percentage points higher than BIV’s (0.18% vs. 0.05%). JPST is mostly comprised of A bonds and BIV has a high exposure to AAA bond. Overall, JPST has provided lower returns than BIV over the past 3 years.

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

Summary

JPST BIV
Name JPMorgan Ultra-Short Income ETF Vanguard Intermediate-Term Bond Index Fund ETF Shares
Category Ultrashort Bond Intermediate-Term Bond
Issuer JPMorgan Vanguard
AUM 17.32B 39.05B
Avg. Return 2.57% 5.31%
Div. Yield 0.94% 2.06%
Expense Ratio 0.18% 0.05%

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%.

The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) is a Intermediate-Term Bond fund that is issued by Vanguard. It currently has 39.05B total assets under management and has yielded an average annual return of 5.31% over the past 10 years. The fund has a dividend yield of 2.06% with an expense ratio of 0.05%.

JPST’s dividend yield is 1.12% lower than that of BIV (0.94% vs. 2.06%). Also, JPST yielded on average 2.74% less per year over the past decade (2.57% vs. 5.31%). The expense ratio of JPST is 0.13 percentage points higher than BIV’s (0.18% vs. 0.05%).

Fund Composition

Holdings

JPST - Holdings

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.

BIV - Holdings

BIV Bond Sectors Weight
AAA 54.51%
BBB 25.24%
A 16.97%
AA 3.1%
Others 0.15%
Below B 0.03%
B 0.0%
BB 0.0%
US Government 0.0%

BIV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 54.51%, 25.24%, 16.97%, 3.1%, and 0.15%. The fund is less weighted towards Below B (0.03%), B (0.0%), and BB (0.0%) rated bonds.

Risk Analysis

JPST BIV
Mean Return 0 0.35
R-squared 0 95.12
Std. Deviation 0 4.09
Alpha 0 -0.07
Beta 0 1.33
Sharpe Ratio 0 0.89
Treynor Ratio 0 2.72

The JPMorgan Ultra-Short Income ETF (JPST) has a Sharpe Ratio of 0 with a Mean Return of 0 and a Alpha of 0. Its R-squared is 0 while JPST’s Treynor Ratio is 0. Furthermore, the fund has a Standard Deviation of 0 and a Beta of 0.

The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) has a Beta of 1.33 with a Alpha of -0.07 and a Standard Deviation of 4.09. Its R-squared is 95.12 while BIV’s Mean Return is 0.35. Furthermore, the fund has a Treynor Ratio of 2.72 and a Sharpe Ratio of 0.89.

JPST’s Mean Return is 0.35 points lower than that of BIV and its R-squared is 95.12 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than BIV. The Alpha and Beta of JPST are 0.07 points higher and 1.33 points lower than BIV’s Alpha and Beta.

Performance

Annual Returns

JPST vs. BIV - Annual Returns

Year JPST BIV
2020 2.17% 9.71%
2019 3.36% 10.19%
2018 2.19% -0.09%
2017 0.0% 3.8%
2016 0.0% 2.86%
2015 0.0% 1.23%
2014 0.0% 7.0%
2013 0.0% -3.44%
2012 0.0% 7.02%
2011 0.0% 10.62%
2010 0.0% 9.55%

JPST had its best year in 2019 with an annual return of 3.36%. JPST’s worst year over the past decade yielded 0.0% and occurred in 2017. In most years the JPMorgan Ultra-Short Income ETF provided moderate returns such as in 2013, 2012, and 2011 where annual returns amounted to 0.0%, 0.0%, and 0.0% respectively.

The year 2011 was the strongest year for BIV, returning 10.62% on an annual basis. The poorest year for BIV in the last ten years was 2013, with a yield of -3.44%. Most years the Vanguard Intermediate-Term Bond Index Fund ETF Shares has given investors modest returns, such as in 2017, 2014, and 2012, when gains were 3.8%, 7.0%, and 7.02% respectively.

Portfolio Growth

JPST vs. BIV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
JPST $10,000 $10,791 2.57%
BIV $10,000 $12,078 5.31%

A $10,000 investment in JPST would have resulted in a final balance of $10,791. This is a profit of $791 over 3 years and amounts to a compound annual growth rate (CAGR) of 2.57%.

With a $10,000 investment in BIV, the end total would have been $12,078. This equates to a $2,078 profit over 3 years and a compound annual growth rate (CAGR) of 5.31%.

JPST’s CAGR is 2.74 percentage points lower than that of BIV and as a result, would have yielded $1,287 less on a $10,000 investment. Thus, JPST performed worse than BIV by 2.74% annually.


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