SCHX vs. JPST: What’s The Difference?

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

The expense ratio of SCHX is 0.15 percentage points lower than JPST’s (0.03% vs. 0.18%). SCHX also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, SCHX has provided higher returns than JPST over the past ten years.

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

Summary

SCHX JPST
Name Schwab U.S. Large-Cap ETF JPMorgan Ultra-Short Income ETF
Category Large Blend Ultrashort Bond
Issuer Schwab ETFs JPMorgan
AUM 30.89B 17.32B
Avg. Return 14.60% 2.57%
Div. Yield 1.41% 0.94%
Expense Ratio 0.03% 0.18%

The Schwab U.S. Large-Cap ETF (SCHX) is a Large Blend fund that is issued by Schwab ETFs. It currently has 30.89B total assets under management and has yielded an average annual return of 14.60% over the past 10 years. The fund has a dividend yield of 1.41% with an expense ratio of 0.03%.

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%.

SCHX’s dividend yield is 0.47% higher than that of JPST (1.41% vs. 0.94%). Also, SCHX yielded on average 12.03% more per year over the past decade (14.60% vs. 2.57%). The expense ratio of SCHX is 0.15 percentage points lower than JPST’s (0.03% vs. 0.18%).

Fund Composition

Holdings

SCHX - Holdings

SCHX Holdings Weight
Apple Inc 5.37%
Microsoft Corp 5.1%
Amazon.com Inc 3.69%
Facebook Inc A 2.08%
Alphabet Inc A 1.84%
Alphabet Inc Class C 1.78%
Berkshire Hathaway Inc Class B 1.32%
Tesla Inc 1.31%
NVIDIA Corp 1.25%
JPMorgan Chase & Co 1.18%

SCHX’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.37%, 5.1%, 3.69%, 2.08%, and 1.84%.

Alphabet Inc Class C (1.78%), Berkshire Hathaway Inc Class B (1.32%), and Tesla Inc (1.31%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SCHX’s holdings at 1.25% and 1.18%.

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

SCHX JPST
Mean Return 1.24 0
R-squared 99.83 0
Std. Deviation 13.8 0
Alpha -0.14 0
Beta 1.02 0
Sharpe Ratio 1.03 0
Treynor Ratio 14.06 0

The Schwab U.S. Large-Cap ETF (SCHX) has a Beta of 1.02 with a Standard Deviation of 13.8 and a Mean Return of 1.24. Its Treynor Ratio is 14.06 while SCHX’s Sharpe Ratio is 1.03. Furthermore, the fund has a R-squared of 99.83 and a Alpha of -0.14.

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

SCHX’s Mean Return is 1.24 points higher than that of JPST and its R-squared is 99.83 points higher. With a Standard Deviation of 13.8, SCHX is slightly more volatile than JPST. The Alpha and Beta of SCHX are 0.14 points lower and 1.02 points higher than JPST’s Alpha and Beta.

Performance

Annual Returns

SCHX vs. JPST - Annual Returns

Year SCHX JPST
2020 20.9% 2.17%
2019 31.4% 3.36%
2018 -4.52% 2.19%
2017 21.91% 0.0%
2016 11.78% 0.0%
2015 1.02% 0.0%
2014 13.33% 0.0%
2013 32.54% 0.0%
2012 16.06% 0.0%
2011 1.61% 0.0%
2010 15.88% 0.0%

SCHX had its best year in 2013 with an annual return of 32.54%. SCHX’s worst year over the past decade yielded -4.52% and occurred in 2018. In most years the Schwab U.S. Large-Cap ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.33%, 15.88%, and 16.06% 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

SCHX vs. JPST - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SCHX $10,000 $15,168 14.60%
JPST $10,000 $10,791 2.57%

A $10,000 investment in SCHX would have resulted in a final balance of $15,168. This is a profit of $5,168 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.60%.

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%.

SCHX’s CAGR is 12.03 percentage points higher than that of JPST and as a result, would have yielded $4,377 more on a $10,000 investment. Thus, SCHX outperformed JPST by 12.03% annually.


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