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JPST vs. IWS: What’s The Difference?

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

The expense ratio of JPST is 0.05 percentage points lower than IWS’s (0.18% vs. 0.23%). JPST is mostly comprised of A bonds while IWS has a high exposure to the financial services sector. Overall, JPST has provided lower returns than IWS over the past 3 years.

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

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Summary

JPSTIWS
NameJPMorgan Ultra-Short Income ETFiShares Russell Mid-Cap Value ETF
CategoryUltrashort BondMid-Cap Value
IssuerJPMorganiShares
AUM17.32B14.24B
Avg. Return2.57%12.35%
Div. Yield0.94%1.34%
Expense Ratio0.18%0.23%

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 Value ETF (IWS) is a Mid-Cap Value fund that is issued by iShares. It currently has 14.24B total assets under management and has yielded an average annual return of 12.35% over the past 10 years. The fund has a dividend yield of 1.34% with an expense ratio of 0.23%.

JPST’s dividend yield is 0.40% lower than that of IWS (0.94% vs. 1.34%). Also, JPST yielded on average 9.77% less per year over the past decade (2.57% vs. 12.35%). The expense ratio of JPST is 0.05 percentage points lower than IWS’s (0.18% vs. 0.23%).

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Fund Composition

Holdings

JPST - Holdings

JPST Bond SectorsWeight
A39.21%
BBB36.75%
AAA14.9%
AA9.14%
Others0.0%
Below B0.0%
B0.0%
BB0.0%
US Government0.0%

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.

IWS - Holdings

IWS HoldingsWeight
Twitter Inc0.69%
Marvell Technology Inc0.69%
IHS Markit Ltd0.62%
Prudential Financial Inc0.56%
Otis Worldwide Corp Ordinary Shares0.54%
International Flavors & Fragrances Inc0.53%
Xcel Energy Inc0.52%
Motorola Solutions Inc0.52%
Aptiv PLC0.52%
Aflac Inc0.52%

IWS’s Top Holdings are Twitter Inc, Marvell Technology Inc, IHS Markit Ltd, Prudential Financial Inc, and Otis Worldwide Corp Ordinary Shares at 0.69%, 0.69%, 0.62%, 0.56%, and 0.54%.

International Flavors & Fragrances Inc (0.53%), Xcel Energy Inc (0.52%), and Motorola Solutions Inc (0.52%) have a slightly smaller but still significant weight. Aptiv PLC and Aflac Inc are also represented in the IWS’s holdings at 0.52% and 0.52%.

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Risk Analysis

JPSTIWS
Mean Return01.06
R-squared087.04
Std. Deviation016.03
Alpha0-4.11
Beta01.1
Sharpe Ratio00.75
Treynor Ratio010.3

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

The iShares Russell Mid-Cap Value ETF (IWS) has a Sharpe Ratio of 0.75 with a Mean Return of 1.06 and a Treynor Ratio of 10.3. Its Alpha is -4.11 while IWS’s Beta is 1.1. Furthermore, the fund has a Standard Deviation of 16.03 and a R-squared of 87.04.

JPST’s Mean Return is 1.06 points lower than that of IWS and its R-squared is 87.04 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than IWS. The Alpha and Beta of JPST are 4.11 points higher and 1.10 points lower than IWS’s Alpha and Beta.

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Performance

Annual Returns

JPST vs. IWS - Annual Returns

YearJPSTIWS
20202.17%4.76%
20193.36%26.78%
20182.19%-12.36%
20170.0%13.1%
20160.0%19.69%
20150.0%-4.93%
20140.0%14.49%
20130.0%33.11%
20120.0%18.27%
20110.0%-1.55%
20100.0%24.46%

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 IWS, returning 33.11% on an annual basis. The poorest year for IWS in the last ten years was 2018, with a yield of -12.36%. Most years the iShares Russell Mid-Cap Value ETF has given investors modest returns, such as in 2017, 2014, and 2012, when gains were 13.1%, 14.49%, and 18.27% respectively.

Portfolio Growth

JPST vs. IWS - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
JPST$10,000$10,7912.57%
IWS$10,000$11,63912.35%

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 IWS, the end total would have been $11,639. This equates to a $1,639 profit over 3 years and a compound annual growth rate (CAGR) of 12.35%.

JPST’s CAGR is 9.77 percentage points lower than that of IWS and as a result, would have yielded $848 less on a $10,000 investment. Thus, JPST performed worse than IWS by 9.77% annually.


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