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JPST vs. VXF: What’s The Difference?

The JPMorgan Ultra-Short Income ETF (JPST) and the Vanguard Extended Market Index Fund ETF Shares (VXF) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and VXF is a Vanguard Mid-Cap Growth fund. So, what’s the difference between JPST and VXF? And which fund is better?

The expense ratio of JPST is 0.12 percentage points higher than VXF’s (0.18% vs. 0.06%). JPST is mostly comprised of A bonds while VXF has a high exposure to the technology sector. Overall, JPST has provided lower returns than VXF over the past 3 years.

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

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Summary

JPSTVXF
NameJPMorgan Ultra-Short Income ETFVanguard Extended Market Index Fund ETF Shares
CategoryUltrashort BondMid-Cap Growth
IssuerJPMorganVanguard
AUM17.32B114.53B
Avg. Return2.57%15.47%
Div. Yield0.94%1.19%
Expense Ratio0.18%0.06%

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 Extended Market Index Fund ETF Shares (VXF) is a Mid-Cap Growth fund that is issued by Vanguard. It currently has 114.53B total assets under management and has yielded an average annual return of 15.47% over the past 10 years. The fund has a dividend yield of 1.19% with an expense ratio of 0.06%.

JPST’s dividend yield is 0.25% lower than that of VXF (0.94% vs. 1.19%). Also, JPST yielded on average 12.90% less per year over the past decade (2.57% vs. 15.47%). The expense ratio of JPST is 0.12 percentage points higher than VXF’s (0.18% vs. 0.06%).

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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.

VXF - Holdings

VXF HoldingsWeight
Square Inc A1.2%
Zoom Video Communications Inc1.04%
Uber Technologies Inc0.93%
Moderna Inc0.9%
Blackstone Group Inc0.83%
Snap Inc Class A0.8%
Twilio Inc A0.73%
DocuSign Inc0.68%
CrowdStrike Holdings Inc Class A0.63%
Marvell Technology Inc0.6%

VXF’s Top Holdings are Square Inc A, Zoom Video Communications Inc, Uber Technologies Inc, Moderna Inc, and Blackstone Group Inc at 1.2%, 1.04%, 0.93%, 0.9%, and 0.83%.

Snap Inc Class A (0.8%), Twilio Inc A (0.73%), and DocuSign Inc (0.68%) have a slightly smaller but still significant weight. CrowdStrike Holdings Inc Class A and Marvell Technology Inc are also represented in the VXF’s holdings at 0.63% and 0.6%.

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Risk Analysis

JPSTVXF
Mean Return01.24
R-squared085.73
Std. Deviation018.04
Alpha0-3.26
Beta01.23
Sharpe Ratio00.79
Treynor Ratio010.92

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

The Vanguard Extended Market Index Fund ETF Shares (VXF) has a Sharpe Ratio of 0.79 with a R-squared of 85.73 and a Mean Return of 1.24. Its Standard Deviation is 18.04 while VXF’s Treynor Ratio is 10.92. Furthermore, the fund has a Alpha of -3.26 and a Beta of 1.23.

JPST’s Mean Return is 1.24 points lower than that of VXF and its R-squared is 85.73 points lower. With a Standard Deviation of 0, JPST is slightly less volatile than VXF. The Alpha and Beta of JPST are 3.26 points higher and 1.23 points lower than VXF’s Alpha and Beta.

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Performance

Annual Returns

JPST vs. VXF - Annual Returns

YearJPSTVXF
20202.17%32.19%
20193.36%28.04%
20182.19%-9.37%
20170.0%18.1%
20160.0%16.16%
20150.0%-3.26%
20140.0%7.55%
20130.0%38.37%
20120.0%18.48%
20110.0%-3.61%
20100.0%27.55%

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 VXF, returning 38.37% on an annual basis. The poorest year for VXF in the last ten years was 2018, with a yield of -9.37%. Most years the Vanguard Extended Market Index Fund ETF Shares has given investors modest returns, such as in 2016, 2017, and 2012, when gains were 16.16%, 18.1%, and 18.48% respectively.

Portfolio Growth

JPST vs. VXF - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
JPST$10,000$10,7912.57%
VXF$10,000$15,33915.47%

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 VXF, the end total would have been $15,339. This equates to a $5,339 profit over 3 years and a compound annual growth rate (CAGR) of 15.47%.

JPST’s CAGR is 12.90 percentage points lower than that of VXF and as a result, would have yielded $4,548 less on a $10,000 investment. Thus, JPST performed worse than VXF by 12.90% annually.


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