The JPMorgan Ultra-Short Income ETF (JPST) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between JPST and EFV? And which fund is better?
The expense ratio of JPST is 0.21 percentage points lower than EFV’s (0.18% vs. 0.39%). JPST is mostly comprised of A bonds while EFV has a high exposure to the financial services sector. Overall, JPST has provided lower returns than EFV over the past 3 years.
In this article, we’ll compare JPST vs. EFV. We’ll look at annual returns and portfolio growth, as well as at their holdings and risk metrics. Moreover, I’ll also discuss JPST’s and EFV’s fund composition, industry exposure, and performance and examine how these affect their overall returns.
Summary
| JPST | EFV | |
| Name | JPMorgan Ultra-Short Income ETF | iShares MSCI EAFE Value ETF |
| Category | Ultrashort Bond | Foreign Large Value |
| Issuer | JPMorgan | iShares |
| AUM | 17.32B | 14.37B |
| Avg. Return | 2.57% | 3.99% |
| Div. Yield | 0.94% | 2.94% |
| Expense Ratio | 0.18% | 0.39% |
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 iShares MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.
JPST’s dividend yield is 2.00% lower than that of EFV (0.94% vs. 2.94%). Also, JPST yielded on average 1.42% less per year over the past decade (2.57% vs. 3.99%). The expense ratio of JPST is 0.21 percentage points lower than EFV’s (0.18% vs. 0.39%).
Fund Composition
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.
| EFV Holdings | Weight |
| Novartis AG | 2.41% |
| Toyota Motor Corp | 2.21% |
| Commonwealth Bank of Australia | 1.59% |
| Siemens AG | 1.45% |
| Sanofi SA | 1.42% |
| HSBC Holdings PLC | 1.4% |
| TotalEnergies SE | 1.35% |
| Allianz SE | 1.23% |
| GlaxoSmithKline PLC | 1.18% |
| Rio Tinto PLC | 1.1% |
EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.
HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.
Risk Analysis
| JPST | EFV | |
| Mean Return | 0 | 0.42 |
| R-squared | 0 | 92.15 |
| Std. Deviation | 0 | 16.53 |
| Alpha | 0 | -1.77 |
| Beta | 0 | 1.05 |
| Sharpe Ratio | 0 | 0.26 |
| Treynor Ratio | 0 | 2.92 |
The JPMorgan Ultra-Short Income ETF (JPST) has a Treynor Ratio of 0 with a Beta of 0 and a Alpha of 0. Its Sharpe Ratio is 0 while JPST’s Mean Return is 0. Furthermore, the fund has a R-squared of 0 and a Standard Deviation of 0.
The iShares MSCI EAFE Value ETF (EFV) has a Beta of 1.05 with a Mean Return of 0.42 and a Alpha of -1.77. Its Standard Deviation is 16.53 while EFV’s R-squared is 92.15. Furthermore, the fund has a Treynor Ratio of 2.92 and a Sharpe Ratio of 0.26.
JPST’s Mean Return is 0.42 points lower than that of EFV and its R-squared is 92.15 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than EFV. The Alpha and Beta of JPST are 1.77 points higher and 1.05 points lower than EFV’s Alpha and Beta.
Performance
Annual Returns
| Year | JPST | EFV |
| 2020 | 2.17% | -2.78% |
| 2019 | 3.36% | 15.97% |
| 2018 | 2.19% | -14.88% |
| 2017 | 0.0% | 21.22% |
| 2016 | 0.0% | 4.87% |
| 2015 | 0.0% | -5.89% |
| 2014 | 0.0% | -5.65% |
| 2013 | 0.0% | 22.61% |
| 2012 | 0.0% | 17.52% |
| 2011 | 0.0% | -12.24% |
| 2010 | 0.0% | 3.18% |
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 2013 was the strongest year for EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| JPST | $10,000 | $10,791 | 2.57% |
| EFV | $10,000 | $9,596 | 3.99% |
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 EFV, the end total would have been $9,596. This equates to a $-404 profit over 3 years and a compound annual growth rate (CAGR) of 3.99%.
JPST’s CAGR is 1.42 percentage points lower than that of EFV and as a result, would have yielded $1,195 more on a $10,000 investment. Thus, JPST performed worse than EFV by 1.42% annually.
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