The Schwab U.S. Dividend Equity ETF (SCHD) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. SCHD is a Schwab ETFs Large Value fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between SCHD and JPST? And which fund is better?
The expense ratio of SCHD is 0.12 percentage points lower than JPST’s (0.06% vs. 0.18%). SCHD also has a high exposure to the financial services sector while JPST is mostly comprised of A bonds. Overall, SCHD has provided higher returns than JPST over the past 3 years.
In this article, we’ll compare SCHD vs. JPST. We’ll look at annual returns and risk metrics, as well as at their portfolio growth and industry exposure. Moreover, I’ll also discuss SCHD’s and JPST’s holdings, performance, and fund composition and examine how these affect their overall returns.
|Name||Schwab U.S. Dividend Equity ETF||JPMorgan Ultra-Short Income ETF|
|Category||Large Value||Ultrashort Bond|
The Schwab U.S. Dividend Equity ETF (SCHD) is a Large Value fund that is issued by Schwab ETFs. It currently has 26B total assets under management and has yielded an average annual return of 14.80% over the past 10 years. The fund has a dividend yield of 2.89% 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%.
SCHD’s dividend yield is 1.95% higher than that of JPST (2.89% vs. 0.94%). Also, SCHD yielded on average 12.23% more per year over the past decade (14.80% vs. 2.57%). The expense ratio of SCHD is 0.12 percentage points lower than JPST’s (0.06% vs. 0.18%).
|Merck & Co Inc||4.24%|
|The Home Depot Inc||4.19%|
|Texas Instruments Inc||4.16%|
|Verizon Communications Inc||3.96%|
|Cisco Systems Inc||3.96%|
SCHD’s Top Holdings are Merck & Co Inc, The Home Depot Inc, Texas Instruments Inc, Broadcom Inc, and Amgen Inc at 4.24%, 4.19%, 4.16%, 4.15%, and 4.11%.
PepsiCo Inc (4.09%), BlackRock Inc (4.05%), and Pfizer Inc (3.97%) have a slightly smaller but still significant weight. Verizon Communications Inc and Cisco Systems Inc are also represented in the SCHD’s holdings at 3.96% and 3.96%.
|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 Schwab U.S. Dividend Equity ETF (SCHD) has a R-squared of 0 with a Alpha of 0 and a Standard Deviation of 0. Its Sharpe Ratio is 0 while SCHD’s Beta is 0. Furthermore, the fund has a Mean Return of 0 and a Treynor Ratio of 0.
The JPMorgan Ultra-Short Income ETF (JPST) has a Sharpe Ratio of 0 with a Beta of 0 and a Standard Deviation of 0. Its Alpha is 0 while JPST’s R-squared is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Mean Return of 0.
SCHD’s Mean Return is 0.00 points lower than that of JPST and its R-squared is 0.00 points lower. With a Standard Deviation of 0, SCHD is slightly less volatile than JPST. The Alpha and Beta of SCHD are 0.00 points lower and 0.00 points lower than JPST’s Alpha and Beta.
SCHD had its best year in 2013 with an annual return of 32.9%. SCHD’s worst year over the past decade yielded -5.46% and occurred in 2018. In most years the Schwab U.S. Dividend Equity ETF provided moderate returns such as in 2012, 2014, and 2020 where annual returns amounted to 11.4%, 11.66%, and 15.11% 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 SCHD would have resulted in a final balance of $13,851. This is a profit of $3,851 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.80%.
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%.
SCHD’s CAGR is 12.23 percentage points higher than that of JPST and as a result, would have yielded $3,060 more on a $10,000 investment. Thus, SCHD outperformed JPST by 12.23% annually.
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