The Vanguard Mid-Cap Index Fund ETF Shares (VO) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. VO is a Vanguard Mid-Cap Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between VO and JPST? And which fund is better?
The expense ratio of VO is 0.14 percentage points lower than JPST’s (0.04% vs. 0.18%). VO also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, VO has provided higher returns than JPST over the past ten years.
In this article, we’ll compare VO vs. JPST. We’ll look at industry exposure and annual returns, as well as at their portfolio growth and fund composition. Moreover, I’ll also discuss VO’s and JPST’s holdings, risk metrics, and performance and examine how these affect their overall returns.
Summary
| VO | JPST | |
| Name | Vanguard Mid-Cap Index Fund ETF Shares | JPMorgan Ultra-Short Income ETF |
| Category | Mid-Cap Blend | Ultrashort Bond |
| Issuer | Vanguard | JPMorgan |
| AUM | 154.08B | 17.32B |
| Avg. Return | 14.34% | 2.57% |
| Div. Yield | 1.23% | 0.94% |
| Expense Ratio | 0.04% | 0.18% |
The Vanguard Mid-Cap Index Fund ETF Shares (VO) is a Mid-Cap Blend fund that is issued by Vanguard. It currently has 154.08B total assets under management and has yielded an average annual return of 14.34% over the past 10 years. The fund has a dividend yield of 1.23% with an expense ratio of 0.04%.
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%.
VO’s dividend yield is 0.29% higher than that of JPST (1.23% vs. 0.94%). Also, VO yielded on average 11.76% more per year over the past decade (14.34% vs. 2.57%). The expense ratio of VO is 0.14 percentage points lower than JPST’s (0.04% vs. 0.18%).
Fund Composition
Holdings
| VO Holdings | Weight |
| IDEXX Laboratories Inc | 0.78% |
| DocuSign Inc | 0.75% |
| Marvell Technology Inc | 0.68% |
| IQVIA Holdings Inc | 0.68% |
| Chipotle Mexican Grill Inc | 0.63% |
| Veeva Systems Inc Class A | 0.62% |
| Digital Realty Trust Inc | 0.62% |
| Centene Corp | 0.62% |
| Aptiv PLC | 0.62% |
| Carrier Global Corp Ordinary Shares | 0.61% |
VO’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Marvell Technology Inc, IQVIA Holdings Inc, and Chipotle Mexican Grill Inc at 0.78%, 0.75%, 0.68%, 0.68%, and 0.63%.
Veeva Systems Inc Class A (0.62%), Digital Realty Trust Inc (0.62%), and Centene Corp (0.62%) have a slightly smaller but still significant weight. Aptiv PLC and Carrier Global Corp Ordinary Shares are also represented in the VO’s holdings at 0.62% and 0.61%.
| 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
| VO | JPST | |
| Mean Return | 1.14 | 0 |
| R-squared | 92.22 | 0 |
| Std. Deviation | 15.65 | 0 |
| Alpha | -2.71 | 0 |
| Beta | 1.11 | 0 |
| Sharpe Ratio | 0.83 | 0 |
| Treynor Ratio | 11.32 | 0 |
The Vanguard Mid-Cap Index Fund ETF Shares (VO) has a Alpha of -2.71 with a Treynor Ratio of 11.32 and a Sharpe Ratio of 0.83. Its Standard Deviation is 15.65 while VO’s Mean Return is 1.14. Furthermore, the fund has a Beta of 1.11 and a R-squared of 92.22.
The JPMorgan Ultra-Short Income ETF (JPST) has a R-squared of 0 with a Sharpe Ratio of 0 and a Mean Return of 0. Its Treynor Ratio is 0 while JPST’s Standard Deviation is 0. Furthermore, the fund has a Alpha of 0 and a Beta of 0.
VO’s Mean Return is 1.14 points higher than that of JPST and its R-squared is 92.22 points higher. With a Standard Deviation of 15.65, VO is slightly more volatile than JPST. The Alpha and Beta of VO are 2.71 points lower and 1.11 points higher than JPST’s Alpha and Beta.
Performance
Annual Returns
| Year | VO | JPST |
| 2020 | 18.22% | 2.17% |
| 2019 | 31.04% | 3.36% |
| 2018 | -9.21% | 2.19% |
| 2017 | 19.25% | 0.0% |
| 2016 | 11.23% | 0.0% |
| 2015 | -1.34% | 0.0% |
| 2014 | 13.76% | 0.0% |
| 2013 | 35.15% | 0.0% |
| 2012 | 15.98% | 0.0% |
| 2011 | -1.96% | 0.0% |
| 2010 | 25.57% | 0.0% |
VO had its best year in 2013 with an annual return of 35.15%. VO’s worst year over the past decade yielded -9.21% and occurred in 2018. In most years the Vanguard Mid-Cap Index Fund ETF Shares provided moderate returns such as in 2014, 2012, and 2020 where annual returns amounted to 13.76%, 15.98%, and 18.22% 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 |
| VO | $10,000 | $14,064 | 14.34% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in VO would have resulted in a final balance of $14,064. This is a profit of $4,064 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.34%.
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%.
VO’s CAGR is 11.76 percentage points higher than that of JPST and as a result, would have yielded $3,273 more on a $10,000 investment. Thus, VO outperformed JPST by 11.76% annually.
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