VT vs. JPST: What’s The Difference?

The Vanguard Total World Stock Index Fund ETF Shares (VT) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. VT is a Vanguard N/A fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between VT and JPST? And which fund is better?

The expense ratio of VT is 0.10 percentage points lower than JPST’s (0.08% vs. 0.18%). VT also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, VT has provided higher returns than JPST over the past 3 years.

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

Summary

VT JPST
Name Vanguard Total World Stock Index Fund ETF Shares JPMorgan Ultra-Short Income ETF
Category N/A Ultrashort Bond
Issuer Vanguard JPMorgan
AUM 30.44B 17.32B
Avg. Return 10.42% 2.57%
Div. Yield 1.65% 0.94%
Expense Ratio 0.08% 0.18%

The Vanguard Total World Stock Index Fund ETF Shares (VT) is a N/A fund that is issued by Vanguard. It currently has 30.44B total assets under management and has yielded an average annual return of 10.42% over the past 10 years. The fund has a dividend yield of 1.65% with an expense ratio of 0.08%.

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%.

VT’s dividend yield is 0.71% higher than that of JPST (1.65% vs. 0.94%). Also, VT yielded on average 7.84% more per year over the past decade (10.42% vs. 2.57%). The expense ratio of VT is 0.10 percentage points lower than JPST’s (0.08% vs. 0.18%).

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Fund Composition

Holdings

VT - Holdings

VT Holdings Weight
Apple Inc 2.85%
Microsoft Corp 2.71%
Amazon.com Inc 1.98%
Facebook Inc Class A 1.1%
Alphabet Inc Class A 0.97%
Alphabet Inc Class C 0.95%
Tesla Inc 0.7%
NVIDIA Corp 0.64%
JPMorgan Chase & Co 0.62%
Tencent Holdings Ltd 0.6%

VT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 2.85%, 2.71%, 1.98%, 1.1%, and 0.97%.

Alphabet Inc Class C (0.95%), Tesla Inc (0.7%), and NVIDIA Corp (0.64%) have a slightly smaller but still significant weight. JPMorgan Chase & Co and Tencent Holdings Ltd are also represented in the VT’s holdings at 0.62% and 0.6%.

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.

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Risk Analysis

VT JPST
Mean Return 0.9 0
R-squared 99.35 0
Std. Deviation 14.19 0
Alpha 0.2 0
Beta 1.01 0
Sharpe Ratio 0.71 0
Treynor Ratio 9.5 0

The Vanguard Total World Stock Index Fund ETF Shares (VT) has a Sharpe Ratio of 0.71 with a Alpha of 0.2 and a Standard Deviation of 14.19. Its R-squared is 99.35 while VT’s Treynor Ratio is 9.5. Furthermore, the fund has a Mean Return of 0.9 and a Beta of 1.01.

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

VT’s Mean Return is 0.90 points higher than that of JPST and its R-squared is 99.35 points higher. With a Standard Deviation of 14.19, VT is slightly more volatile than JPST. The Alpha and Beta of VT are 0.20 points higher and 1.01 points higher than JPST’s Alpha and Beta.

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Performance

Annual Returns

VT vs. JPST - Annual Returns

Year VT JPST
2020 16.74% 2.17%
2019 26.8% 3.36%
2018 -9.67% 2.19%
2017 24.19% 0.0%
2016 8.77% 0.0%
2015 -1.88% 0.0%
2014 3.97% 0.0%
2013 22.98% 0.0%
2012 17.33% 0.0%
2011 -7.71% 0.0%
2010 13.05% 0.0%

VT had its best year in 2019 with an annual return of 26.8%. VT’s worst year over the past decade yielded -9.67% and occurred in 2018. In most years the Vanguard Total World Stock Index Fund ETF Shares provided moderate returns such as in 2016, 2010, and 2020 where annual returns amounted to 8.77%, 13.05%, and 16.74% 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

VT vs. JPST - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VT $10,000 $13,371 10.42%
JPST $10,000 $10,791 2.57%

A $10,000 investment in VT would have resulted in a final balance of $13,371. This is a profit of $3,371 over 3 years and amounts to a compound annual growth rate (CAGR) of 10.42%.

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%.

VT’s CAGR is 7.84 percentage points higher than that of JPST and as a result, would have yielded $2,580 more on a $10,000 investment. Thus, VT outperformed JPST by 7.84% annually.


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