The JPMorgan Ultra-Short Income ETF (JPST) and the Schwab U.S. Large-Cap Growth ETF (SCHG) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and SCHG is a Schwab ETFs Large Growth fund. So, what’s the difference between JPST and SCHG? And which fund is better?
The expense ratio of JPST is 0.14 percentage points higher than SCHG’s (0.18% vs. 0.04%). JPST is mostly comprised of A bonds while SCHG has a high exposure to the technology sector. Overall, JPST has provided lower returns than SCHG over the past 3 years.
In this article, we’ll compare JPST vs. SCHG. We’ll look at industry exposure and performance, as well as at their portfolio growth and annual returns. Moreover, I’ll also discuss JPST’s and SCHG’s fund composition, holdings, and risk metrics and examine how these affect their overall returns.
Summary
| JPST | SCHG | |
| Name | JPMorgan Ultra-Short Income ETF | Schwab U.S. Large-Cap Growth ETF |
| Category | Ultrashort Bond | Large Growth |
| Issuer | JPMorgan | Schwab ETFs |
| AUM | 17.32B | 15.16B |
| Avg. Return | 2.57% | 17.81% |
| Div. Yield | 0.94% | 0.43% |
| Expense Ratio | 0.18% | 0.04% |
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 Schwab U.S. Large-Cap Growth ETF (SCHG) is a Large Growth fund that is issued by Schwab ETFs. It currently has 15.16B total assets under management and has yielded an average annual return of 17.81% over the past 10 years. The fund has a dividend yield of 0.43% with an expense ratio of 0.04%.
JPST’s dividend yield is 0.51% higher than that of SCHG (0.94% vs. 0.43%). Also, JPST yielded on average 15.24% less per year over the past decade (2.57% vs. 17.81%). The expense ratio of JPST is 0.14 percentage points higher than SCHG’s (0.18% vs. 0.04%).
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.
| SCHG Holdings | Weight |
| Apple Inc | 11.49% |
| Microsoft Corp | 10.91% |
| Amazon.com Inc | 7.89% |
| Facebook Inc A | 4.45% |
| Alphabet Inc A | 3.93% |
| Alphabet Inc Class C | 3.82% |
| Tesla Inc | 2.8% |
| NVIDIA Corp | 2.67% |
| Visa Inc Class A | 2.12% |
| UnitedHealth Group Inc | 2.02% |
SCHG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 11.49%, 10.91%, 7.89%, 4.45%, and 3.93%.
Alphabet Inc Class C (3.82%), Tesla Inc (2.8%), and NVIDIA Corp (2.67%) have a slightly smaller but still significant weight. Visa Inc Class A and UnitedHealth Group Inc are also represented in the SCHG’s holdings at 2.12% and 2.02%.
Risk Analysis
| JPST | SCHG | |
| Mean Return | 0 | 1.46 |
| R-squared | 0 | 92.92 |
| Std. Deviation | 0 | 14.78 |
| Alpha | 0 | 1.97 |
| Beta | 0 | 1.05 |
| Sharpe Ratio | 0 | 1.14 |
| Treynor Ratio | 0 | 16.3 |
The JPMorgan Ultra-Short Income ETF (JPST) has a R-squared of 0 with a Beta of 0 and a Mean Return of 0. Its Sharpe Ratio is 0 while JPST’s Treynor Ratio is 0. Furthermore, the fund has a Alpha of 0 and a Standard Deviation of 0.
The Schwab U.S. Large-Cap Growth ETF (SCHG) has a Alpha of 1.97 with a Standard Deviation of 14.78 and a R-squared of 92.92. Its Mean Return is 1.46 while SCHG’s Sharpe Ratio is 1.14. Furthermore, the fund has a Beta of 1.05 and a Treynor Ratio of 16.3.
JPST’s Mean Return is 1.46 points lower than that of SCHG and its R-squared is 92.92 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than SCHG. The Alpha and Beta of JPST are 1.97 points lower and 1.05 points lower than SCHG’s Alpha and Beta.
Performance
Annual Returns
| Year | JPST | SCHG |
| 2020 | 2.17% | 39.13% |
| 2019 | 3.36% | 36.21% |
| 2018 | 2.19% | -1.35% |
| 2017 | 0.0% | 28.04% |
| 2016 | 0.0% | 6.76% |
| 2015 | 0.0% | 3.26% |
| 2014 | 0.0% | 15.74% |
| 2013 | 0.0% | 33.96% |
| 2012 | 0.0% | 17.02% |
| 2011 | 0.0% | -0.67% |
| 2010 | 0.0% | 16.83% |
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 SCHG, returning 39.13% on an annual basis. The poorest year for SCHG in the last ten years was 2018, with a yield of -1.35%. Most years the Schwab U.S. Large-Cap Growth ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 15.74%, 16.83%, and 17.02% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| JPST | $10,000 | $10,791 | 2.57% |
| SCHG | $10,000 | $18,695 | 17.81% |
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 SCHG, the end total would have been $18,695. This equates to a $8,695 profit over 3 years and a compound annual growth rate (CAGR) of 17.81%.
JPST’s CAGR is 15.24 percentage points lower than that of SCHG and as a result, would have yielded $7,904 less on a $10,000 investment. Thus, JPST performed worse than SCHG by 15.24% annually.
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