JPST vs. VLUE: What’s The Difference?

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

The expense ratio of JPST is 0.03 percentage points higher than VLUE’s (0.18% vs. 0.15%). JPST is mostly comprised of A bonds while VLUE has a high exposure to the technology sector. Overall, JPST has provided lower returns than VLUE over the past 3 years.

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

Summary

JPST VLUE
Name JPMorgan Ultra-Short Income ETF iShares MSCI USA Value Factor ETF
Category Ultrashort Bond Large Value
Issuer JPMorgan iShares
AUM 17.32B 15.95B
Avg. Return 2.57% 8.91%
Div. Yield 0.94% 1.89%
Expense Ratio 0.18% 0.15%

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 MSCI USA Value Factor ETF (VLUE) is a Large Value fund that is issued by iShares. It currently has 15.95B total assets under management and has yielded an average annual return of 8.91% over the past 10 years. The fund has a dividend yield of 1.89% with an expense ratio of 0.15%.

JPST’s dividend yield is 0.95% lower than that of VLUE (0.94% vs. 1.89%). Also, JPST yielded on average 6.34% less per year over the past decade (2.57% vs. 8.91%). The expense ratio of JPST is 0.03 percentage points higher than VLUE’s (0.18% vs. 0.15%).

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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.

VLUE - Holdings

VLUE Holdings Weight
AT&T Inc 7.13%
Intel Corp 6.14%
General Motors Co 3.19%
Micron Technology Inc 3.14%
Cisco Systems Inc 3.05%
International Business Machines Corp 2.76%
Target Corp 2.38%
Citigroup Inc 2.32%
Ford Motor Co 2.23%
Pfizer Inc 2.17%

VLUE’s Top Holdings are AT&T Inc, Intel Corp, General Motors Co, Micron Technology Inc, and Cisco Systems Inc at 7.13%, 6.14%, 3.19%, 3.14%, and 3.05%.

International Business Machines Corp (2.76%), Target Corp (2.38%), and Citigroup Inc (2.32%) have a slightly smaller but still significant weight. Ford Motor Co and Pfizer Inc are also represented in the VLUE’s holdings at 2.23% and 2.17%.

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Risk Analysis

JPST VLUE
Mean Return 0 0
R-squared 0 0
Std. Deviation 0 0
Alpha 0 0
Beta 0 0
Sharpe Ratio 0 0
Treynor Ratio 0 0

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

The iShares MSCI USA Value Factor ETF (VLUE) has a Mean Return of 0 with a R-squared of 0 and a Standard Deviation of 0. Its Sharpe Ratio is 0 while VLUE’s Alpha is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Beta of 0.

JPST’s Mean Return is 0.00 points lower than that of VLUE and its R-squared is 0.00 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than VLUE. The Alpha and Beta of JPST are 0.00 points lower and 0.00 points lower than VLUE’s Alpha and Beta.

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Performance

Annual Returns

JPST vs. VLUE - Annual Returns

Year JPST VLUE
2020 2.17% -0.32%
2019 3.36% 27.47%
2018 2.19% -11.18%
2017 0.0% 21.97%
2016 0.0% 15.68%
2015 0.0% -3.54%
2014 0.0% 12.29%
2013 0.0% 0.0%
2012 0.0% 0.0%
2011 0.0% 0.0%
2010 0.0% 0.0%

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 2019 was the strongest year for VLUE, returning 27.47% on an annual basis. The poorest year for VLUE in the last ten years was 2018, with a yield of -11.18%. Most years the iShares MSCI USA Value Factor ETF has given investors modest returns, such as in 2012, 2011, and 2010, when gains were 0.0%, 0.0%, and 0.0% respectively.

Portfolio Growth

JPST vs. VLUE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
JPST $10,000 $10,791 2.57%
VLUE $10,000 $11,285 8.91%

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 VLUE, the end total would have been $11,285. This equates to a $1,285 profit over 3 years and a compound annual growth rate (CAGR) of 8.91%.

JPST’s CAGR is 6.34 percentage points lower than that of VLUE and as a result, would have yielded $494 less on a $10,000 investment. Thus, JPST performed worse than VLUE by 6.34% annually.


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