JPST vs. IWP: What’s The Difference?

The JPMorgan Ultra-Short Income ETF (JPST) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between JPST and IWP? And which fund is better?

The expense ratio of JPST is 0.06 percentage points lower than IWP’s (0.18% vs. 0.24%). JPST is mostly comprised of A bonds while IWP has a high exposure to the technology sector. Overall, JPST has provided lower returns than IWP over the past 3 years.

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

Summary

JPST IWP
Name JPMorgan Ultra-Short Income ETF iShares Russell Mid-Cap Growth ETF
Category Ultrashort Bond Mid-Cap Growth
Issuer JPMorgan iShares
AUM 17.32B 15.7B
Avg. Return 2.57% 16.75%
Div. Yield 0.94% 0.26%
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 Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.

JPST’s dividend yield is 0.68% higher than that of IWP (0.94% vs. 0.26%). Also, JPST yielded on average 14.18% less per year over the past decade (2.57% vs. 16.75%). The expense ratio of JPST is 0.06 percentage points lower than IWP’s (0.18% vs. 0.24%).

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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.

IWP - Holdings

IWP Holdings Weight
IDEXX Laboratories Inc 1.3%
DocuSign Inc 1.3%
Roku Inc Class A 1.29%
Match Group Inc 1.06%
Chipotle Mexican Grill Inc 1.06%
Pinterest Inc 1.05%
Veeva Systems Inc Class A 1.04%
Palantir Technologies Inc Ordinary Shares – Class A 1.04%
Lululemon Athletica Inc 1.01%
DexCom Inc 1.0%

IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.

Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.

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Risk Analysis

JPST IWP
Mean Return 0 1.27
R-squared 0 87.01
Std. Deviation 0 16.05
Alpha 0 -1.03
Beta 0 1.1
Sharpe Ratio 0 0.91
Treynor Ratio 0 12.98

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

The iShares Russell Mid-Cap Growth ETF (IWP) has a Mean Return of 1.27 with a Standard Deviation of 16.05 and a Beta of 1.1. Its Treynor Ratio is 12.98 while IWP’s R-squared is 87.01. Furthermore, the fund has a Sharpe Ratio of 0.91 and a Alpha of -1.03.

JPST’s Mean Return is 1.27 points lower than that of IWP and its R-squared is 87.01 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than IWP. The Alpha and Beta of JPST are 1.03 points higher and 1.10 points lower than IWP’s Alpha and Beta.

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Performance

Annual Returns

JPST vs. IWP - Annual Returns

Year JPST IWP
2020 2.17% 35.29%
2019 3.36% 35.14%
2018 2.19% -4.95%
2017 0.0% 24.98%
2016 0.0% 7.15%
2015 0.0% -0.39%
2014 0.0% 11.68%
2013 0.0% 35.44%
2012 0.0% 15.62%
2011 0.0% -1.82%
2010 0.0% 26.1%

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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.

Portfolio Growth

JPST vs. IWP - Portfolio Growth

Fund Initial Balance Final Balance CAGR
JPST $10,000 $10,791 2.57%
IWP $10,000 $17,378 16.75%

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 IWP, the end total would have been $17,378. This equates to a $7,378 profit over 3 years and a compound annual growth rate (CAGR) of 16.75%.

JPST’s CAGR is 14.18 percentage points lower than that of IWP and as a result, would have yielded $6,587 less on a $10,000 investment. Thus, JPST performed worse than IWP by 14.18% annually.


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