QQQ vs. JPST: What’s The Difference?

The Invesco QQQ Trust (QQQ) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. QQQ is a Invesco Large Growth fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between QQQ and JPST? And which fund is better?

The expense ratio of QQQ is 0.02 percentage points higher than JPST’s (0.2% vs. 0.18%). QQQ also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, QQQ has provided higher returns than JPST over the past ten years.

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


Name Invesco QQQ Trust JPMorgan Ultra-Short Income ETF
Category Large Growth Ultrashort Bond
Issuer Invesco JPMorgan
AUM 174.51B 17.32B
Avg. Return 21.27% 2.57%
Div. Yield 0.49% 0.94%
Expense Ratio 0.2% 0.18%

The Invesco QQQ Trust (QQQ) is a Large Growth fund that is issued by Invesco. It currently has 174.51B total assets under management and has yielded an average annual return of 21.27% over the past 10 years. The fund has a dividend yield of 0.49% with an expense ratio of 0.2%.

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%.

QQQ’s dividend yield is 0.45% lower than that of JPST (0.49% vs. 0.94%). Also, QQQ yielded on average 18.70% more per year over the past decade (21.27% vs. 2.57%). The expense ratio of QQQ is 0.02 percentage points higher than JPST’s (0.2% vs. 0.18%).

Fund Composition


QQQ - Holdings

QQQ Holdings Weight
Apple Inc 11.0%
Microsoft Corp 9.82%
Amazon.com Inc 8.35%
Facebook Inc Class A 4.01%
Facebook Inc A 4.01%
Alphabet Inc Class C 3.9%
Tesla Inc 3.9%
NVIDIA Corp 3.65%
Alphabet Inc Class A 3.53%
Alphabet Inc A 3.53%

QQQ’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Facebook Inc A at 11.0%, 9.82%, 8.35%, 4.01%, and 4.01%.

Alphabet Inc Class C (3.9%), Tesla Inc (3.9%), and NVIDIA Corp (3.65%) have a slightly smaller but still significant weight. Alphabet Inc Class A and Alphabet Inc A are also represented in the QQQ’s holdings at 3.53% and 3.53%.

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.


Annual Returns

QQQ vs. JPST - Annual Returns

2020 48.6% 2.17%
2019 39.12% 3.36%
2018 -0.14% 2.19%
2017 32.7% 0.0%
2016 7.01% 0.0%
2015 9.54% 0.0%
2014 19.12% 0.0%
2013 36.6% 0.0%
2012 18.09% 0.0%
2011 3.44% 0.0%
2010 19.89% 0.0%

QQQ had its best year in 2020 with an annual return of 48.6%. QQQ’s worst year over the past decade yielded -0.14% and occurred in 2018. In most years the Invesco QQQ Trust provided moderate returns such as in 2012, 2014, and 2010 where annual returns amounted to 18.09%, 19.12%, and 19.89% 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.

Portfolio Growth

QQQ vs. JPST - Portfolio Growth

Fund Initial Balance Final Balance CAGR
QQQ $10,000 $20,644 21.27%
JPST $10,000 $10,791 2.57%

A $10,000 investment in QQQ would have resulted in a final balance of $20,644. This is a profit of $10,644 over 3 years and amounts to a compound annual growth rate (CAGR) of 21.27%.

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%.

QQQ’s CAGR is 18.70 percentage points higher than that of JPST and as a result, would have yielded $9,853 more on a $10,000 investment. Thus, QQQ outperformed JPST by 18.70% annually.

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