The Vanguard Small-Cap Index Fund ETF Shares (VB) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. VB is a Vanguard Small Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between VB and JPST? And which fund is better?
The expense ratio of VB is 0.13 percentage points lower than JPST’s (0.05% vs. 0.18%). VB also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, VB has provided higher returns than JPST over the past ten years.
In this article, we’ll compare VB vs. JPST. We’ll look at annual returns and industry exposure, as well as at their performance and fund composition. Moreover, I’ll also discuss VB’s and JPST’s risk metrics, holdings, and portfolio growth and examine how these affect their overall returns.
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Summary
| VB | JPST | |
| Name | Vanguard Small-Cap Index Fund ETF Shares | JPMorgan Ultra-Short Income ETF |
| Category | Small Blend | Ultrashort Bond |
| Issuer | Vanguard | JPMorgan |
| AUM | 137.72B | 17.32B |
| Avg. Return | 14.25% | 2.57% |
| Div. Yield | 1.14% | 0.94% |
| Expense Ratio | 0.05% | 0.18% |
The Vanguard Small-Cap Index Fund ETF Shares (VB) is a Small Blend fund that is issued by Vanguard. It currently has 137.72B total assets under management and has yielded an average annual return of 14.25% over the past 10 years. The fund has a dividend yield of 1.14% with an expense ratio of 0.05%.
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%.
VB’s dividend yield is 0.20% higher than that of JPST (1.14% vs. 0.94%). Also, VB yielded on average 11.68% more per year over the past decade (14.25% vs. 2.57%). The expense ratio of VB is 0.13 percentage points lower than JPST’s (0.05% vs. 0.18%).
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Fund Composition
Holdings
| VB Holdings | Weight |
| Charles River Laboratories International Inc | 0.34% |
| Pool Corp | 0.32% |
| Bio-Techne Corp | 0.32% |
| Avantor Inc | 0.32% |
| PerkinElmer Inc | 0.31% |
| Diamondback Energy Inc | 0.31% |
| VICI Properties Inc Ordinary Shares | 0.3% |
| IDEX Corp | 0.3% |
| Entegris Inc | 0.3% |
| Novavax Inc | 0.29% |
VB’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.34%, 0.32%, 0.32%, 0.32%, and 0.31%.
Diamondback Energy Inc (0.31%), VICI Properties Inc Ordinary Shares (0.3%), and IDEX Corp (0.3%) have a slightly smaller but still significant weight. Entegris Inc and Novavax Inc are also represented in the VB’s holdings at 0.3% and 0.29%.
| 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
| VB | JPST | |
| Mean Return | 1.15 | 0 |
| R-squared | 85.03 | 0 |
| Std. Deviation | 17.82 | 0 |
| Alpha | -4.02 | 0 |
| Beta | 1.21 | 0 |
| Sharpe Ratio | 0.74 | 0 |
| Treynor Ratio | 10.15 | 0 |
The Vanguard Small-Cap Index Fund ETF Shares (VB) has a R-squared of 85.03 with a Sharpe Ratio of 0.74 and a Mean Return of 1.15. Its Treynor Ratio is 10.15 while VB’s Standard Deviation is 17.82. Furthermore, the fund has a Alpha of -4.02 and a Beta of 1.21.
The JPMorgan Ultra-Short Income ETF (JPST) has a Beta of 0 with a R-squared of 0 and a Standard Deviation of 0. Its Treynor Ratio is 0 while JPST’s Sharpe Ratio is 0. Furthermore, the fund has a Alpha of 0 and a Mean Return of 0.
VB’s Mean Return is 1.15 points higher than that of JPST and its R-squared is 85.03 points higher. With a Standard Deviation of 17.82, VB is slightly more volatile than JPST. The Alpha and Beta of VB are 4.02 points lower and 1.21 points higher than JPST’s Alpha and Beta.
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Performance
Annual Returns
| Year | VB | JPST |
| 2020 | 19.08% | 2.17% |
| 2019 | 27.37% | 3.36% |
| 2018 | -9.3% | 2.19% |
| 2017 | 16.24% | 0.0% |
| 2016 | 18.31% | 0.0% |
| 2015 | -3.65% | 0.0% |
| 2014 | 7.51% | 0.0% |
| 2013 | 37.8% | 0.0% |
| 2012 | 18.22% | 0.0% |
| 2011 | -2.68% | 0.0% |
| 2010 | 27.89% | 0.0% |
VB had its best year in 2013 with an annual return of 37.8%. VB’s worst year over the past decade yielded -9.3% and occurred in 2018. In most years the Vanguard Small-Cap Index Fund ETF Shares provided moderate returns such as in 2017, 2012, and 2016 where annual returns amounted to 16.24%, 18.22%, and 18.31% 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
| Fund | Initial Balance | Final Balance | CAGR |
| VB | $10,000 | $13,756 | 14.25% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in VB would have resulted in a final balance of $13,756. This is a profit of $3,756 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.25%.
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%.
VB’s CAGR is 11.68 percentage points higher than that of JPST and as a result, would have yielded $2,965 more on a $10,000 investment. Thus, VB outperformed JPST by 11.68% annually.
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