The Vanguard Total Stock Market Index Fund ETF Shares (VTI) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. VTI is a Vanguard Large Blend fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between VTI and JPST? And which fund is better?
The expense ratio of VTI is 0.15 percentage points lower than JPST’s (0.03% vs. 0.18%). VTI also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, VTI has provided higher returns than JPST over the past ten years.
In this article, we’ll compare VTI vs. JPST. We’ll look at performance and risk metrics, as well as at their fund composition and industry exposure. Moreover, I’ll also discuss VTI’s and JPST’s annual returns, portfolio growth, and holdings and examine how these affect their overall returns.
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|Name||Vanguard Total Stock Market Index Fund ETF Shares||JPMorgan Ultra-Short Income ETF|
|Category||Large Blend||Ultrashort Bond|
The Vanguard Total Stock Market Index Fund ETF Shares (VTI) is a Large Blend fund that is issued by Vanguard. It currently has 1.26T total assets under management and has yielded an average annual return of 14.70% over the past 10 years. The fund has a dividend yield of 1.26% 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%.
VTI’s dividend yield is 0.32% higher than that of JPST (1.26% vs. 0.94%). Also, VTI yielded on average 12.12% more per year over the past decade (14.70% vs. 2.57%). The expense ratio of VTI is 0.15 percentage points lower than JPST’s (0.03% vs. 0.18%).
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|Facebook Inc Class A||1.88%|
|Alphabet Inc Class A||1.66%|
|Alphabet Inc Class C||1.56%|
|Berkshire Hathaway Inc Class B||1.09%|
|JPMorgan Chase & Co||1.06%|
VTI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 4.9%, 4.6%, 3.33%, 1.88%, and 1.66%.
Alphabet Inc Class C (1.56%), Tesla Inc (1.18%), and Berkshire Hathaway Inc Class B (1.09%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VTI’s holdings at 1.07% and 1.06%.
|JPST Bond Sectors||Weight|
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.
VTI had its best year in 2013 with an annual return of 33.51%. VTI’s worst year over the past decade yielded -5.13% and occurred in 2018. In most years the Vanguard Total Stock Market Index Fund ETF Shares provided moderate returns such as in 2016, 2012, and 2010 where annual returns amounted to 12.68%, 16.41%, and 17.26% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in VTI would have resulted in a final balance of $15,008. This is a profit of $5,008 over 3 years and amounts to a compound annual growth rate (CAGR) of 14.70%.
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%.
VTI’s CAGR is 12.12 percentage points higher than that of JPST and as a result, would have yielded $4,217 more on a $10,000 investment. Thus, VTI outperformed JPST by 12.12% annually.
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