The Invesco S&P 500 Equal Weight ETF (RSP) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between RSP and JPST? And which fund is better?
The expense ratio of RSP is 0.02 percentage points higher than JPST’s (0.2% vs. 0.18%). RSP also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, RSP has provided higher returns than JPST over the past ten years.
In this article, we’ll compare RSP vs. JPST. We’ll look at portfolio growth and fund composition, as well as at their holdings and risk metrics. Moreover, I’ll also discuss RSP’s and JPST’s industry exposure, annual returns, and performance and examine how these affect their overall returns.
|Name||Invesco S&P 500 Equal Weight ETF||JPMorgan Ultra-Short Income ETF|
|Category||Large Blend||Ultrashort Bond|
The Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% 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%.
RSP’s dividend yield is 0.37% higher than that of JPST (1.31% vs. 0.94%). Also, RSP yielded on average 11.21% more per year over the past decade (13.79% vs. 2.57%). The expense ratio of RSP is 0.02 percentage points higher than JPST’s (0.2% vs. 0.18%).
|Chipotle Mexican Grill Inc||0.27%|
|Nike Inc Class B||0.25%|
|Monolithic Power Systems Inc||0.25%|
|Enphase Energy Inc||0.25%|
|Advanced Micro Devices Inc||0.25%|
|IDEXX Laboratories Inc||0.24%|
RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.
Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.
|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.
The Invesco S&P 500 Equal Weight ETF (RSP) has a Mean Return of 1.19 with a Standard Deviation of 15.36 and a Sharpe Ratio of 0.89. Its R-squared is 94.47 while RSP’s Alpha is -2.45. Furthermore, the fund has a Beta of 1.1 and a Treynor Ratio of 12.12.
The JPMorgan Ultra-Short Income ETF (JPST) has a Treynor Ratio of 0 with a Alpha of 0 and a Standard Deviation of 0. Its Beta is 0 while JPST’s Sharpe Ratio is 0. Furthermore, the fund has a R-squared of 0 and a Mean Return of 0.
RSP’s Mean Return is 1.19 points higher than that of JPST and its R-squared is 94.47 points higher. With a Standard Deviation of 15.36, RSP is slightly more volatile than JPST. The Alpha and Beta of RSP are 2.45 points lower and 1.10 points higher than JPST’s Alpha and Beta.
RSP had its best year in 2013 with an annual return of 35.6%. RSP’s worst year over the past decade yielded -7.77% and occurred in 2018. In most years the Invesco S&P 500 Equal Weight ETF provided moderate returns such as in 2014, 2016, and 2012 where annual returns amounted to 14.02%, 14.34%, and 17.04% 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 RSP would have resulted in a final balance of $13,408. This is a profit of $3,408 over 3 years and amounts to a compound annual growth rate (CAGR) of 13.79%.
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%.
RSP’s CAGR is 11.21 percentage points higher than that of JPST and as a result, would have yielded $2,617 more on a $10,000 investment. Thus, RSP outperformed JPST by 11.21% annually.
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) 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!
2) 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!).
3) If you are interested in crypto, check out Gemini. I've started allocating a small amount of assets to the growing crypto space and Gemini has just been a breeze to use. Once you register, make sure to also open an Active Trader account to buy crypto at the lowest fees on the market (just 0.03%!).
To see all of my most up-to-date recommendations, check out the Recommended Tools section.