The JPMorgan Ultra-Short Income ETF (JPST) and the Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and VBK is a Vanguard Small Growth fund. So, what’s the difference between JPST and VBK? And which fund is better?
The expense ratio of JPST is 0.11 percentage points higher than VBK’s (0.18% vs. 0.07%). JPST is mostly comprised of A bonds while VBK has a high exposure to the technology sector. Overall, JPST has provided lower returns than VBK over the past 3 years.
In this article, we’ll compare JPST vs. VBK. We’ll look at risk metrics and industry exposure, as well as at their fund composition and annual returns. Moreover, I’ll also discuss JPST’s and VBK’s holdings, performance, and portfolio growth and examine how these affect their overall returns.
|Name||JPMorgan Ultra-Short Income ETF||Vanguard Small-Cap Growth Index Fund ETF Shares|
|Category||Ultrashort Bond||Small Growth|
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 Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) is a Small Growth fund that is issued by Vanguard. It currently has 37.89B total assets under management and has yielded an average annual return of 16.53% over the past 10 years. The fund has a dividend yield of 0.45% with an expense ratio of 0.07%.
JPST’s dividend yield is 0.49% higher than that of VBK (0.94% vs. 0.45%). Also, JPST yielded on average 13.95% less per year over the past decade (2.57% vs. 16.53%). The expense ratio of JPST is 0.11 percentage points higher than VBK’s (0.18% vs. 0.07%).
FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).
|JPST Bond Sectors||Weight|
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.
|Charles River Laboratories International Inc||0.78%|
|Fair Isaac Corp||0.57%|
|Bill.com Holdings Inc Ordinary Shares||0.56%|
VBK’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.78%, 0.73%, 0.73%, 0.73%, and 0.72%.
Entegris Inc (0.7%), PTC Inc (0.62%), and Fair Isaac Corp (0.57%) have a slightly smaller but still significant weight. Bill.com Holdings Inc Ordinary Shares and Avalara Inc are also represented in the VBK’s holdings at 0.56% and 0.55%.
NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).
The JPMorgan Ultra-Short Income ETF (JPST) has a Alpha of 0 with a Sharpe Ratio of 0 and a Beta of 0. Its Standard Deviation is 0 while JPST’s Treynor Ratio is 0. Furthermore, the fund has a Mean Return of 0 and a R-squared of 0.
The Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has a Sharpe Ratio of 0.78 with a R-squared of 80.56 and a Alpha of -2.81. Its Mean Return is 1.22 while VBK’s Standard Deviation is 17.95. Furthermore, the fund has a Beta of 1.18 and a Treynor Ratio of 11.18.
JPST’s Mean Return is 1.22 points lower than that of VBK and its R-squared is 80.56 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than VBK. The Alpha and Beta of JPST are 2.81 points higher and 1.18 points lower than VBK’s Alpha and Beta.
BTW: Uncorrelated crypto assets such as Bitcoin can serve as a hedge and mitigate risk. I've allocated around 5% of my portfolio to crypto assets through Coinbase - the simplest and cheapest broker I've found! Click here to read more (link to Coinbase).
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 VBK, returning 38.18% on an annual basis. The poorest year for VBK in the last ten years was 2018, with a yield of -5.68%. Most years the Vanguard Small-Cap Growth Index Fund ETF Shares has given investors modest returns, such as in 2016, 2012, and 2017, when gains were 10.74%, 17.67%, and 21.9% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 VBK, the end total would have been $16,939. This equates to a $6,939 profit over 3 years and a compound annual growth rate (CAGR) of 16.53%.
JPST’s CAGR is 13.95 percentage points lower than that of VBK and as a result, would have yielded $6,148 less on a $10,000 investment. Thus, JPST performed worse than VBK by 13.95% annually.
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
2) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
3) If you are interested in crypto, check out Coinbase. I've started allocating a small amount of assets to the growing crypto space and Coinbase has just been a breeze to use. Once you register, make sure to also open an Coinbase Pro account to buy crypto at the lowest fees on the market (just 0.1%!).
To see all of my most up-to-date recommendations, check out the Recommended Tools section.