Skip to content

JPST vs. XLC: What’s The Difference?

The JPMorgan Ultra-Short Income ETF (JPST) and the Communication Services Select Sector SPDR Fund (XLC) are both among the Top 100 ETFs. JPST is a JPMorgan Ultrashort Bond fund and XLC is a SPDR State Street Global Advisors Communications fund. So, what’s the difference between JPST and XLC? And which fund is better?

The expense ratio of JPST is 0.06 percentage points higher than XLC’s (0.18% vs. 0.12%). JPST is mostly comprised of A bonds while XLC has a high exposure to the communication services sector. Overall, JPST has provided lower returns than XLC over the past 2 years.

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

TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

JPSTXLC
NameJPMorgan Ultra-Short Income ETFCommunication Services Select Sector SPDR Fund
CategoryUltrashort BondCommunications
IssuerJPMorganSPDR State Street Global Advisors
AUM17.32B14.09B
Avg. Return2.57%29.04%
Div. Yield0.94%0.62%
Expense Ratio0.18%0.12%

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 Communication Services Select Sector SPDR Fund (XLC) is a Communications fund that is issued by SPDR State Street Global Advisors. It currently has 14.09B total assets under management and has yielded an average annual return of 29.04% over the past 10 years. The fund has a dividend yield of 0.62% with an expense ratio of 0.12%.

JPST’s dividend yield is 0.32% higher than that of XLC (0.94% vs. 0.62%). Also, JPST yielded on average 26.46% less per year over the past decade (2.57% vs. 29.04%). The expense ratio of JPST is 0.06 percentage points higher than XLC’s (0.18% vs. 0.12%).

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).

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.

XLC - Holdings

XLC HoldingsWeight
Facebook Inc A23.75%
Alphabet Inc A11.49%
Alphabet Inc Class C11.16%
Netflix Inc4.78%
Charter Communications Inc A4.65%
Comcast Corp Class A4.44%
T-Mobile US Inc4.41%
The Walt Disney Co4.39%
AT&T Inc4.35%
Verizon Communications Inc4.33%

XLC’s Top Holdings are Facebook Inc A, Alphabet Inc A, Alphabet Inc Class C, Netflix Inc, and Charter Communications Inc A at 23.75%, 11.49%, 11.16%, 4.78%, and 4.65%.

Comcast Corp Class A (4.44%), T-Mobile US Inc (4.41%), and The Walt Disney Co (4.39%) have a slightly smaller but still significant weight. AT&T Inc and Verizon Communications Inc are also represented in the XLC’s holdings at 4.35% and 4.33%.

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).

Risk Analysis

JPSTXLC
Mean Return00
R-squared00
Std. Deviation00
Alpha00
Beta00
Sharpe Ratio00
Treynor Ratio00

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

The Communication Services Select Sector SPDR Fund (XLC) has a Sharpe Ratio of 0 with a Treynor Ratio of 0 and a R-squared of 0. Its Mean Return is 0 while XLC’s Beta is 0. Furthermore, the fund has a Standard Deviation of 0 and a Alpha of 0.

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

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

JPST vs. XLC - Annual Returns

YearJPSTXLC
20202.17%26.85%
20193.36%31.22%
20182.19%0.0%
20170.0%0.0%
20160.0%0.0%
20150.0%0.0%
20140.0%0.0%
20130.0%0.0%
20120.0%0.0%
20110.0%0.0%
20100.0%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 XLC, returning 31.22% on an annual basis. The poorest year for XLC in the last ten years was 2018, with a yield of 0.0%. Most years the Communication Services Select Sector SPDR Fund has given investors modest returns, such as in 2014, 2013, and 2012, when gains were 0.0%, 0.0%, and 0.0% respectively.

Portfolio Growth

JPST vs. XLC - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
JPST$10,000$10,5602.57%
XLC$10,000$16,64529.04%

A $10,000 investment in JPST would have resulted in a final balance of $10,560. This is a profit of $560 over 2 years and amounts to a compound annual growth rate (CAGR) of 2.57%.

With a $10,000 investment in XLC, the end total would have been $16,645. This equates to a $6,645 profit over 2 years and a compound annual growth rate (CAGR) of 29.04%.

JPST’s CAGR is 26.46 percentage points lower than that of XLC and as a result, would have yielded $6,085 less on a $10,000 investment. Thus, JPST performed worse than XLC by 26.46% annually.


Current recommendations:

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)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) 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!

3) 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!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published. Required fields are marked *