The Vanguard S&P 500 ETF (VOO) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. VOO is a Vanguard Large Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between VOO and JPST? And which fund is better?
The expense ratio of VOO is 0.15 percentage points lower than JPST’s (0.03% vs. 0.18%). VOO also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, VOO has provided higher returns than JPST over the past ten years.
In this article, we’ll compare VOO vs. JPST. We’ll look at performance and holdings, as well as at their portfolio growth and risk metrics. Moreover, I’ll also discuss VOO’s and JPST’s fund composition, industry exposure, and annual returns and examine how these affect their overall returns.
Summary
| VOO | JPST | |
| Name | Vanguard S&P 500 ETF | JPMorgan Ultra-Short Income ETF |
| Category | Large Blend | Ultrashort Bond |
| Issuer | Vanguard | JPMorgan |
| AUM | 753.41B | 17.32B |
| Avg. Return | 14.45% | 2.57% |
| Div. Yield | 1.34% | 0.94% |
| Expense Ratio | 0.03% | 0.18% |
The Vanguard S&P 500 ETF (VOO) is a Large Blend fund that is issued by Vanguard. It currently has 753.41B total assets under management and has yielded an average annual return of 14.45% over the past 10 years. The fund has a dividend yield of 1.34% 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%.
VOO’s dividend yield is 0.40% higher than that of JPST (1.34% vs. 0.94%). Also, VOO yielded on average 11.87% more per year over the past decade (14.45% vs. 2.57%). The expense ratio of VOO is 0.15 percentage points lower than JPST’s (0.03% vs. 0.18%).
Fund Composition
Holdings
| VOO Holdings | Weight |
| Apple Inc | 5.92% |
| Microsoft Corp | 5.62% |
| Amazon.com Inc | 4.06% |
| Facebook Inc Class A | 2.29% |
| Alphabet Inc Class A | 2.02% |
| Alphabet Inc Class C | 1.97% |
| Tesla Inc | 1.44% |
| Berkshire Hathaway Inc Class B | 1.44% |
| NVIDIA Corp | 1.37% |
| JPMorgan Chase & Co | 1.3% |
VOO’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.92%, 5.62%, 4.06%, 2.29%, and 2.02%.
Alphabet Inc Class C (1.97%), Tesla Inc (1.44%), and Berkshire Hathaway Inc Class B (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VOO’s holdings at 1.37% and 1.3%.
| 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 | VOO | JPST |
| 2020 | 18.35% | 2.17% |
| 2019 | 31.46% | 3.36% |
| 2018 | -4.42% | 2.19% |
| 2017 | 21.78% | 0.0% |
| 2016 | 11.93% | 0.0% |
| 2015 | 1.35% | 0.0% |
| 2014 | 13.63% | 0.0% |
| 2013 | 32.33% | 0.0% |
| 2012 | 15.98% | 0.0% |
| 2011 | 2.09% | 0.0% |
| 2010 | 0.0% | 0.0% |
VOO had its best year in 2013 with an annual return of 32.33%. VOO’s worst year over the past decade yielded -4.42% and occurred in 2018. In most years the Vanguard S&P 500 ETF provided moderate returns such as in 2016, 2014, and 2012 where annual returns amounted to 11.93%, 13.63%, and 15.98% 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 |
| VOO | $10,000 | $14,870 | 14.45% |
| JPST | $10,000 | $10,791 | 2.57% |
A $10,000 investment in VOO would have resulted in a final balance of $14,870. This is a profit of $4,870 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.45%.
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%.
VOO’s CAGR is 11.87 percentage points higher than that of JPST and as a result, would have yielded $4,079 more on a $10,000 investment. Thus, VOO outperformed JPST by 11.87% annually.
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