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.

Summary

JPST XLC
Name JPMorgan Ultra-Short Income ETF Communication Services Select Sector SPDR Fund
Category Ultrashort Bond Communications
Issuer JPMorgan SPDR State Street Global Advisors
AUM 17.32B 14.09B
Avg. Return 2.57% 29.04%
Div. Yield 0.94% 0.62%
Expense Ratio 0.18% 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%).

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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.

XLC - Holdings

XLC Holdings Weight
Facebook Inc A 23.75%
Alphabet Inc A 11.49%
Alphabet Inc Class C 11.16%
Netflix Inc 4.78%
Charter Communications Inc A 4.65%
Comcast Corp Class A 4.44%
T-Mobile US Inc 4.41%
The Walt Disney Co 4.39%
AT&T Inc 4.35%
Verizon Communications Inc 4.33%

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%.

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Risk Analysis

JPST XLC
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 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.

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Performance

Annual Returns

JPST vs. XLC - Annual Returns

Year JPST XLC
2020 2.17% 26.85%
2019 3.36% 31.22%
2018 2.19% 0.0%
2017 0.0% 0.0%
2016 0.0% 0.0%
2015 0.0% 0.0%
2014 0.0% 0.0%
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 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

Fund Initial Balance Final Balance CAGR
JPST $10,000 $10,560 2.57%
XLC $10,000 $16,645 29.04%

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.


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