The Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. VEA is a Vanguard Foreign Large Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between VEA and JPST? And which fund is better?
The expense ratio of VEA is 0.13 percentage points lower than JPST’s (0.05% vs. 0.18%). VEA also has a high exposure to the financial services sector while JPST is mostly comprised of A bonds. Overall, VEA has provided higher returns than JPST over the past ten years.
In this article, we’ll compare VEA vs. JPST. We’ll look at industry exposure and portfolio growth, as well as at their performance and risk metrics. Moreover, I’ll also discuss VEA’s and JPST’s fund composition, holdings, and annual returns and examine how these affect their overall returns.
Summary
| VEA | JPST | |
| Name | Vanguard FTSE Developed Markets Index Fund ETF Shares | JPMorgan Ultra-Short Income ETF |
| Category | Foreign Large Blend | Ultrashort Bond |
| Issuer | Vanguard | JPMorgan |
| AUM | 157.48B | 17.32B |
| Avg. Return | 7.05% | 2.57% |
| Div. Yield | 2.49% | 0.94% |
| Expense Ratio | 0.05% | 0.18% |
The Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 157.48B total assets under management and has yielded an average annual return of 7.05% over the past 10 years. The fund has a dividend yield of 2.49% 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%.
VEA’s dividend yield is 1.55% higher than that of JPST (2.49% vs. 0.94%). Also, VEA yielded on average 4.48% more per year over the past decade (7.05% vs. 2.57%). The expense ratio of VEA is 0.13 percentage points lower than JPST’s (0.05% vs. 0.18%).
Fund Composition
Holdings
| VEA Holdings | Weight |
| Nestle SA | 1.5% |
| Samsung Electronics Co Ltd | 1.4% |
| ASML Holding NV | 1.16% |
| Roche Holding AG | 1.1% |
| Toyota Motor Corp | 0.92% |
| LVMH Moet Hennessy Louis Vuitton SE | 0.84% |
| Novartis AG | 0.82% |
| Shopify Inc A | 0.7% |
| AstraZeneca PLC | 0.67% |
| SAP SE | 0.66% |
VEA’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.5%, 1.4%, 1.16%, 1.1%, and 0.92%.
LVMH Moet Hennessy Louis Vuitton SE (0.84%), Novartis AG (0.82%), and Shopify Inc A (0.7%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the VEA’s holdings at 0.67% and 0.66%.
| 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.
Performance
Annual Returns
| Year | VEA | JPST |
| 2020 | 10.29% | 2.17% |
| 2019 | 22.08% | 3.36% |
| 2018 | -14.47% | 2.19% |
| 2017 | 26.44% | 0.0% |
| 2016 | 2.51% | 0.0% |
| 2015 | -0.21% | 0.0% |
| 2014 | -5.71% | 0.0% |
| 2013 | 22.12% | 0.0% |
| 2012 | 18.6% | 0.0% |
| 2011 | -12.57% | 0.0% |
| 2010 | 8.47% | 0.0% |
VEA had its best year in 2017 with an annual return of 26.44%. VEA’s worst year over the past decade yielded -14.47% and occurred in 2018. In most years the Vanguard FTSE Developed Markets Index Fund ETF Shares provided moderate returns such as in 2016, 2010, and 2020 where annual returns amounted to 2.51%, 8.47%, and 10.29% 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 |
| VEA | $10,000 | $11,515 | 7.05% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in VEA would have resulted in a final balance of $11,515. This is a profit of $1,515 over 3 years and amounts to a compound annual growth rate (CAGR) of 7.05%.
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%.
VEA’s CAGR is 4.48 percentage points higher than that of JPST and as a result, would have yielded $724 more on a $10,000 investment. Thus, VEA outperformed JPST by 4.48% annually.
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