The iShares MBS ETF (MBB) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. MBB is a iShares Intermediate Government fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between MBB and JPST? And which fund is better?
The expense ratio of MBB is 0.12 percentage points lower than JPST’s (0.06% vs. 0.18%). MBB is mostly comprised of AAA bonds and JPST has a high exposure to A bond. Overall, MBB has provided higher returns than JPST over the past 3 years.
In this article, we’ll compare MBB vs. JPST. We’ll look at holdings and risk metrics, as well as at their performance and portfolio growth. Moreover, I’ll also discuss MBB’s and JPST’s annual returns, industry exposure, and fund composition and examine how these affect their overall returns.
|Name||iShares MBS ETF||JPMorgan Ultra-Short Income ETF|
|Category||Intermediate Government||Ultrashort Bond|
The iShares MBS ETF (MBB) is a Intermediate Government fund that is issued by iShares. It currently has 25.69B total assets under management and has yielded an average annual return of 3.08% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 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%.
MBB’s dividend yield is 0.94% higher than that of JPST (1.88% vs. 0.94%). Also, MBB yielded on average 0.50% more per year over the past decade (3.08% vs. 2.57%). The expense ratio of MBB is 0.12 percentage points lower than JPST’s (0.06% vs. 0.18%).
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|MBB Bond Sectors||Weight|
MBB’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 99.51%, 0.49%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.
|JPST Bond Sectors||Weight|
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.
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The iShares MBS ETF (MBB) has a Treynor Ratio of 3.02 with a Mean Return of 0.2 and a Beta of 0.6. Its Sharpe Ratio is 0.87 while MBB’s Alpha is 0.14. Furthermore, the fund has a R-squared of 74.38 and a Standard Deviation of 2.12.
The JPMorgan Ultra-Short Income ETF (JPST) has a Sharpe Ratio of 0 with a Alpha of 0 and a Mean Return of 0. Its R-squared is 0 while JPST’s Treynor Ratio is 0. Furthermore, the fund has a Standard Deviation of 0 and a Beta of 0.
MBB’s Mean Return is 0.20 points higher than that of JPST and its R-squared is 74.38 points higher. With a Standard Deviation of 2.12, MBB is slightly more volatile than JPST. The Alpha and Beta of MBB are 0.14 points higher and 0.60 points higher than JPST’s Alpha and Beta.
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MBB had its best year in 2019 with an annual return of 6.27%. MBB’s worst year over the past decade yielded -1.92% and occurred in 2013. In most years the iShares MBS ETF provided moderate returns such as in 2012, 2017, and 2020 where annual returns amounted to 2.23%, 2.37%, and 4.03% respectively.
The year 2019 was the strongest year for JPST, returning 3.36% on an annual basis. The poorest year for JPST in the last ten years was 2017, with a yield of 0.0%. Most years the JPMorgan Ultra-Short Income ETF has given investors modest returns, such as in 2013, 2012, and 2011, when gains were 0.0%, 0.0%, and 0.0% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in MBB would have resulted in a final balance of $11,144. This is a profit of $1,144 over 3 years and amounts to a compound annual growth rate (CAGR) of 3.08%.
With a $10,000 investment in JPST, the end total would have been $10,791. This equates to a $791 profit over 3 years and a compound annual growth rate (CAGR) of 2.57%.
MBB’s CAGR is 0.50 percentage points higher than that of JPST and as a result, would have yielded $353 more on a $10,000 investment. Thus, MBB outperformed JPST by 0.50% annually.
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