JPST vs. VBK: What’s The Difference?

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.

Summary

JPST VBK
Name JPMorgan Ultra-Short Income ETF Vanguard Small-Cap Growth Index Fund ETF Shares
Category Ultrashort Bond Small Growth
Issuer JPMorgan Vanguard
AUM 17.32B 37.89B
Avg. Return 2.57% 16.53%
Div. Yield 0.94% 0.45%
Expense Ratio 0.18% 0.07%

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%).

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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.

VBK - Holdings

VBK Holdings Weight
Charles River Laboratories International Inc 0.78%
Pool Corp 0.73%
Bio-Techne Corp 0.73%
Avantor Inc 0.73%
PerkinElmer Inc 0.72%
Entegris Inc 0.7%
PTC Inc 0.62%
Fair Isaac Corp 0.57%
Bill.com Holdings Inc Ordinary Shares 0.56%
Avalara Inc 0.55%

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%.

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Risk Analysis

JPST VBK
Mean Return 0 1.22
R-squared 0 80.56
Std. Deviation 0 17.95
Alpha 0 -2.81
Beta 0 1.18
Sharpe Ratio 0 0.78
Treynor Ratio 0 11.18

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.

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Performance

Annual Returns

JPST vs. VBK - Annual Returns

Year JPST VBK
2020 2.17% 35.29%
2019 3.36% 32.75%
2018 2.19% -5.68%
2017 0.0% 21.9%
2016 0.0% 10.74%
2015 0.0% -2.51%
2014 0.0% 4.02%
2013 0.0% 38.18%
2012 0.0% 17.67%
2011 0.0% -1.43%
2010 0.0% 30.87%

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.

Portfolio Growth

JPST vs. VBK - Portfolio Growth

Fund Initial Balance Final Balance CAGR
JPST $10,000 $10,791 2.57%
VBK $10,000 $16,939 16.53%

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.


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