JPST vs. GOVT: What’s The Difference?

The JPMorgan Ultra-Short Income ETF (JPST) and the iShares U.S. Treasury Bond ETF (GOVT) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and GOVT is a iShares Intermediate Government fund. So, what’s the difference between JPST and GOVT? And which fund is better?

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

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

Summary

JPST GOVT
Name JPMorgan Ultra-Short Income ETF iShares U.S. Treasury Bond ETF
Category Ultrashort Bond Intermediate Government
Issuer JPMorgan iShares
AUM 17.32B 17.07B
Avg. Return 2.57% 2.67%
Div. Yield 0.94% 1.0%
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 iShares U.S. Treasury Bond ETF (GOVT) is a Intermediate Government fund that is issued by iShares. It currently has 17.07B total assets under management and has yielded an average annual return of 2.67% over the past 10 years. The fund has a dividend yield of 1.0% with an expense ratio of 0.05%.

JPST’s dividend yield is 0.06% lower than that of GOVT (0.94% vs. 1.0%). Also, JPST yielded on average 0.10% less per year over the past decade (2.57% vs. 2.67%). The expense ratio of JPST is 0.13 percentage points higher than GOVT’s (0.18% vs. 0.05%).

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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.

GOVT - Holdings

GOVT Bond Sectors Weight
AAA 100.0%
Others 0.0%
Below B 0.0%
B 0.0%
BB 0.0%
BBB 0.0%
A 0.0%
AA 0.0%
US Government 0.0%

GOVT’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 100.0%, 0.0%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.

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Risk Analysis

JPST GOVT
Mean Return 0 0
R-squared 0 0
Std. Deviation 0 0
Alpha 0 0
Beta 0 0
Sharpe Ratio 0 0
Treynor Ratio 0 0

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

The iShares U.S. Treasury Bond ETF (GOVT) has a R-squared of 0 with a Treynor Ratio of 0 and a Mean Return of 0. Its Sharpe Ratio is 0 while GOVT’s Beta is 0. Furthermore, the fund has a Alpha of 0 and a Standard Deviation of 0.

JPST’s Mean Return is 0.00 points lower than that of GOVT and its R-squared is 0.00 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than GOVT. The Alpha and Beta of JPST are 0.00 points lower and 0.00 points lower than GOVT’s Alpha and Beta.

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Performance

Annual Returns

JPST vs. GOVT - Annual Returns

Year JPST GOVT
2020 2.17% 7.92%
2019 3.36% 6.71%
2018 2.19% 0.74%
2017 0.0% 2.19%
2016 0.0% 0.92%
2015 0.0% 0.76%
2014 0.0% 4.99%
2013 0.0% -2.84%
2012 0.0% 0.0%
2011 0.0% 0.0%
2010 0.0% 0.0%

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 2020 was the strongest year for GOVT, returning 7.92% on an annual basis. The poorest year for GOVT in the last ten years was 2013, with a yield of -2.84%. Most years the iShares U.S. Treasury Bond ETF has given investors modest returns, such as in 2018, 2015, and 2016, when gains were 0.74%, 0.76%, and 0.92% respectively.

Portfolio Growth

JPST vs. GOVT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
JPST $10,000 $10,791 2.57%
GOVT $10,000 $11,601 2.67%

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 GOVT, the end total would have been $11,601. This equates to a $1,601 profit over 3 years and a compound annual growth rate (CAGR) of 2.67%.

JPST’s CAGR is 0.10 percentage points lower than that of GOVT and as a result, would have yielded $810 less on a $10,000 investment. Thus, JPST performed worse than GOVT by 0.10% annually.


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