The JPMorgan Ultra-Short Income ETF (JPST) and the iShares Russell 2000 Value ETF (IWN) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and IWN is a iShares Small Value fund. So, what’s the difference between JPST and IWN? And which fund is better?
The expense ratio of JPST is 0.06 percentage points lower than IWN’s (0.18% vs. 0.24%). JPST is mostly comprised of A bonds while IWN has a high exposure to the financial services sector. Overall, JPST has provided lower returns than IWN over the past 3 years.
In this article, we’ll compare JPST vs. IWN. We’ll look at annual returns and holdings, as well as at their industry exposure and portfolio growth. Moreover, I’ll also discuss JPST’s and IWN’s fund composition, performance, and risk metrics and examine how these affect their overall returns.
Summary
| JPST | IWN | |
| Name | JPMorgan Ultra-Short Income ETF | iShares Russell 2000 Value ETF |
| Category | Ultrashort Bond | Small Value |
| Issuer | JPMorgan | iShares |
| AUM | 17.32B | 15.48B |
| Avg. Return | 2.57% | 10.96% |
| Div. Yield | 0.94% | 1.26% |
| Expense Ratio | 0.18% | 0.24% |
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 Russell 2000 Value ETF (IWN) is a Small Value fund that is issued by iShares. It currently has 15.48B total assets under management and has yielded an average annual return of 10.96% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.24%.
JPST’s dividend yield is 0.32% lower than that of IWN (0.94% vs. 1.26%). Also, JPST yielded on average 8.39% less per year over the past decade (2.57% vs. 10.96%). The expense ratio of JPST is 0.06 percentage points lower than IWN’s (0.18% vs. 0.24%).
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.
| IWN Holdings | Weight |
| AMC Entertainment Holdings Inc Class A | 1.06% |
| Tenet Healthcare Corp | 0.47% |
| Stag Industrial Inc | 0.47% |
| Ovintiv Inc | 0.45% |
| EMCOR Group Inc | 0.42% |
| Valley National Bancorp | 0.37% |
| Chesapeake Energy Corp Ordinary Shares – New | 0.37% |
| Agree Realty Corp | 0.36% |
| Macy’s Inc | 0.35% |
| Essent Group Ltd | 0.35% |
IWN’s Top Holdings are AMC Entertainment Holdings Inc Class A, Tenet Healthcare Corp, Stag Industrial Inc, Ovintiv Inc, and EMCOR Group Inc at 1.06%, 0.47%, 0.47%, 0.45%, and 0.42%.
Valley National Bancorp (0.37%), Chesapeake Energy Corp Ordinary Shares – New (0.37%), and Agree Realty Corp (0.36%) have a slightly smaller but still significant weight. Macy’s Inc and Essent Group Ltd are also represented in the IWN’s holdings at 0.35% and 0.35%.
Risk Analysis
| JPST | IWN | |
| Mean Return | 0 | 1.01 |
| R-squared | 0 | 72.64 |
| Std. Deviation | 0 | 19.28 |
| Alpha | 0 | -6.32 |
| Beta | 0 | 1.21 |
| Sharpe Ratio | 0 | 0.59 |
| Treynor Ratio | 0 | 8.3 |
The JPMorgan Ultra-Short Income ETF (JPST) has a Mean Return of 0 with a Alpha of 0 and a Treynor Ratio of 0. Its Beta is 0 while JPST’s R-squared is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Standard Deviation of 0.
The iShares Russell 2000 Value ETF (IWN) has a Standard Deviation of 19.28 with a Treynor Ratio of 8.3 and a Sharpe Ratio of 0.59. Its R-squared is 72.64 while IWN’s Alpha is -6.32. Furthermore, the fund has a Mean Return of 1.01 and a Beta of 1.21.
JPST’s Mean Return is 1.01 points lower than that of IWN and its R-squared is 72.64 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than IWN. The Alpha and Beta of JPST are 6.32 points higher and 1.21 points lower than IWN’s Alpha and Beta.
Performance
Annual Returns
| Year | JPST | IWN |
| 2020 | 2.17% | 4.5% |
| 2019 | 3.36% | 22.17% |
| 2018 | 2.19% | -12.94% |
| 2017 | 0.0% | 7.73% |
| 2016 | 0.0% | 31.64% |
| 2015 | 0.0% | -7.53% |
| 2014 | 0.0% | 4.13% |
| 2013 | 0.0% | 34.3% |
| 2012 | 0.0% | 17.92% |
| 2011 | 0.0% | -5.64% |
| 2010 | 0.0% | 24.29% |
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 IWN, returning 34.3% on an annual basis. The poorest year for IWN in the last ten years was 2018, with a yield of -12.94%. Most years the iShares Russell 2000 Value ETF has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 4.5%, 7.73%, and 17.92% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| JPST | $10,000 | $10,791 | 2.57% |
| IWN | $10,000 | $11,114 | 10.96% |
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 IWN, the end total would have been $11,114. This equates to a $1,114 profit over 3 years and a compound annual growth rate (CAGR) of 10.96%.
JPST’s CAGR is 8.39 percentage points lower than that of IWN and as a result, would have yielded $323 less on a $10,000 investment. Thus, JPST performed worse than IWN by 8.39% annually.
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