SCHF vs. JPST: What’s The Difference?

The Schwab International Equity ETF (SCHF) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. SCHF is a Schwab ETFs Foreign Large Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between SCHF and JPST? And which fund is better?

The expense ratio of SCHF is 0.12 percentage points lower than JPST’s (0.06% vs. 0.18%). SCHF also has a high exposure to the financial services sector while JPST is mostly comprised of A bonds. Overall, SCHF has provided higher returns than JPST over the past 3 years.

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

Summary

SCHF JPST
Name Schwab International Equity ETF JPMorgan Ultra-Short Income ETF
Category Foreign Large Blend Ultrashort Bond
Issuer Schwab ETFs JPMorgan
AUM 26.99B 17.32B
Avg. Return 6.43% 2.57%
Div. Yield 2.16% 0.94%
Expense Ratio 0.06% 0.18%

The Schwab International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% 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%.

SCHF’s dividend yield is 1.22% higher than that of JPST (2.16% vs. 0.94%). Also, SCHF yielded on average 3.85% more per year over the past decade (6.43% vs. 2.57%). The expense ratio of SCHF is 0.12 percentage points lower than JPST’s (0.06% vs. 0.18%).

Fund Composition

Holdings

SCHF - Holdings

SCHF Holdings Weight
Nestle SA 1.66%
Samsung Electronics Co Ltd 1.6%
ASML Holding NV 1.29%
Roche Holding AG 1.24%
Toyota Motor Corp 1.02%
LVMH Moet Hennessy Louis Vuitton SE 0.93%
Novartis AG 0.92%
Shopify Inc A 0.78%
AstraZeneca PLC 0.75%
SAP SE 0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

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.

Risk Analysis

SCHF JPST
Mean Return 0.58 0
R-squared 98.16 0
Std. Deviation 15.08 0
Alpha 0.53 0
Beta 0.99 0
Sharpe Ratio 0.42 0
Treynor Ratio 5.39 0

The Schwab International Equity ETF (SCHF) has a Beta of 0.99 with a R-squared of 98.16 and a Treynor Ratio of 5.39. Its Sharpe Ratio is 0.42 while SCHF’s Standard Deviation is 15.08. Furthermore, the fund has a Alpha of 0.53 and a Mean Return of 0.58.

The JPMorgan Ultra-Short Income ETF (JPST) has a Mean Return of 0 with a Treynor Ratio of 0 and a R-squared of 0. Its Alpha is 0 while JPST’s Sharpe Ratio is 0. Furthermore, the fund has a Standard Deviation of 0 and a Beta of 0.

SCHF’s Mean Return is 0.58 points higher than that of JPST and its R-squared is 98.16 points higher. With a Standard Deviation of 15.08, SCHF is slightly more volatile than JPST. The Alpha and Beta of SCHF are 0.53 points higher and 0.99 points higher than JPST’s Alpha and Beta.

Performance

Annual Returns

SCHF vs. JPST - Annual Returns

Year SCHF JPST
2020 9.86% 2.17%
2019 22.15% 3.36%
2018 -14.39% 2.19%
2017 25.83% 0.0%
2016 2.88% 0.0%
2015 -2.44% 0.0%
2014 -4.44% 0.0%
2013 20.03% 0.0%
2012 17.12% 0.0%
2011 -12.32% 0.0%
2010 8.6% 0.0%

SCHF had its best year in 2017 with an annual return of 25.83%. SCHF’s worst year over the past decade yielded -14.39% and occurred in 2018. In most years the Schwab International Equity ETF provided moderate returns such as in 2016, 2010, and 2020 where annual returns amounted to 2.88%, 8.6%, and 9.86% 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

SCHF vs. JPST - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SCHF $10,000 $11,488 6.43%
JPST $10,000 $10,791 2.57%

A $10,000 investment in SCHF would have resulted in a final balance of $11,488. This is a profit of $1,488 over 3 years and amounts to a compound annual growth rate (CAGR) of 6.43%.

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%.

SCHF’s CAGR is 3.85 percentage points higher than that of JPST and as a result, would have yielded $697 more on a $10,000 investment. Thus, SCHF outperformed JPST by 3.85% annually.


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