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.
|Name||JPMorgan Ultra-Short Income ETF||iShares U.S. Treasury Bond ETF|
|Category||Ultrashort Bond||Intermediate Government|
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%).
FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).
|JPST Bond Sectors||Weight|
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 Bond Sectors||Weight|
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.
NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).
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.
FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!
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.
|Fund||Initial Balance||Final Balance||CAGR|
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.
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.