JPST vs. IUSB: What’s The Difference?

The JPMorgan Ultra-Short Income ETF (JPST) and the iShares Core Total USD Bond Market ETF (IUSB) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and IUSB is a iShares N/A fund. So, what’s the difference between JPST and IUSB? And which fund is better?

The expense ratio of JPST is 0.12 percentage points higher than IUSB’s (0.18% vs. 0.06%). JPST is mostly comprised of A bonds and IUSB has a high exposure to AAA bond. Overall, JPST has provided lower returns than IUSB over the past 3 years.

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

Summary

JPST IUSB
Name JPMorgan Ultra-Short Income ETF iShares Core Total USD Bond Market ETF
Category Ultrashort Bond N/A
Issuer JPMorgan iShares
AUM 17.32B 14.49B
Avg. Return 2.57% 4.13%
Div. Yield 0.94% 2.1%
Expense Ratio 0.18% 0.06%

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 Core Total USD Bond Market ETF (IUSB) is a N/A fund that is issued by iShares. It currently has 14.49B total assets under management and has yielded an average annual return of 4.13% over the past 10 years. The fund has a dividend yield of 2.1% with an expense ratio of 0.06%.

JPST’s dividend yield is 1.16% lower than that of IUSB (0.94% vs. 2.1%). Also, JPST yielded on average 1.56% less per year over the past decade (2.57% vs. 4.13%). The expense ratio of JPST is 0.12 percentage points higher than IUSB’s (0.18% vs. 0.06%).

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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.

IUSB - Holdings

IUSB Bond Sectors Weight
AAA 58.32%
BBB 16.98%
A 12.27%
BB 4.33%
AA 3.36%
B 2.8%
Others 1.01%
Below B 0.92%
US Government 0.0%

IUSB’s Top Bond Sectors are ratings of AAA, BBB, A, BB, and AA at 58.32%, 16.98%, 12.27%, 4.33%, and 3.36%. The fund is less weighted towards B (2.8%), Others (1.01%), and Below B (0.92%) rated bonds.

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Risk Analysis

JPST IUSB
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 Sharpe Ratio of 0 with a Beta of 0 and a R-squared of 0. Its Treynor Ratio is 0 while JPST’s Mean Return is 0. Furthermore, the fund has a Standard Deviation of 0 and a Alpha of 0.

The iShares Core Total USD Bond Market ETF (IUSB) has a Treynor Ratio of 0 with a Mean Return of 0 and a Alpha of 0. Its Beta is 0 while IUSB’s Standard Deviation is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a R-squared of 0.

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

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Performance

Annual Returns

JPST vs. IUSB - Annual Returns

Year JPST IUSB
2020 2.17% 7.59%
2019 3.36% 9.26%
2018 2.19% -0.38%
2017 0.0% 4.06%
2016 0.0% 3.78%
2015 0.0% 0.46%
2014 0.0% 0.0%
2013 0.0% 0.0%
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 2019 was the strongest year for IUSB, returning 9.26% on an annual basis. The poorest year for IUSB in the last ten years was 2018, with a yield of -0.38%. Most years the iShares Core Total USD Bond Market ETF has given investors modest returns, such as in 2011, 2010, and 2015, when gains were 0.0%, 0.0%, and 0.46% respectively.

Portfolio Growth

JPST vs. IUSB - Portfolio Growth

Fund Initial Balance Final Balance CAGR
JPST $10,000 $10,791 2.57%
IUSB $10,000 $11,710 4.13%

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 IUSB, the end total would have been $11,710. This equates to a $1,710 profit over 3 years and a compound annual growth rate (CAGR) of 4.13%.

JPST’s CAGR is 1.56 percentage points lower than that of IUSB and as a result, would have yielded $919 less on a $10,000 investment. Thus, JPST performed worse than IUSB by 1.56% annually.


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