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RSP vs. JPST: What’s The Difference?

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.

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Summary

RSPJPST
NameInvesco S&P 500 Equal Weight ETFJPMorgan Ultra-Short Income ETF
CategoryLarge BlendUltrashort Bond
IssuerInvescoJPMorgan
AUM28.62B17.32B
Avg. Return13.79%2.57%
Div. Yield1.31%0.94%
Expense Ratio0.2%0.18%

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%).

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Fund Composition

Holdings

RSP - Holdings

RSP HoldingsWeight
Chipotle Mexican Grill Inc0.27%
Nike Inc Class B0.25%
MSCI Inc0.25%
Monolithic Power Systems Inc0.25%
Enphase Energy Inc0.25%
Advanced Micro Devices Inc0.25%
ResMed Inc0.24%
PerkinElmer Inc0.24%
IDEXX Laboratories Inc0.24%
Danaher Corp0.24%

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 - 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.

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Risk Analysis

RSPJPST
Mean Return1.190
R-squared94.470
Std. Deviation15.360
Alpha-2.450
Beta1.10
Sharpe Ratio0.890
Treynor Ratio12.120

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.

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Performance

Annual Returns

RSP vs. JPST - Annual Returns

YearRSPJPST
202012.75%2.17%
201928.94%3.36%
2018-7.77%2.19%
201718.52%0.0%
201614.34%0.0%
2015-2.57%0.0%
201414.02%0.0%
201335.6%0.0%
201217.04%0.0%
2011-0.5%0.0%
201021.3%0.0%

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.

Portfolio Growth

RSP vs. JPST - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
RSP$10,000$13,40813.79%
JPST$10,000$10,7912.57%

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.


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