The Vanguard Growth Index Fund ETF Shares (VUG) and the JPMorgan Ultra-Short Income ETF (JPST) are both among the Top 100 ETFs. VUG is a Vanguard Large Growth fund and JPST is a JPMorgan Ultrashort Bond fund. So, what’s the difference between VUG and JPST? And which fund is better?
The expense ratio of VUG is 0.14 percentage points lower than JPST’s (0.04% vs. 0.18%). VUG also has a high exposure to the technology sector while JPST is mostly comprised of A bonds. Overall, VUG has provided higher returns than JPST over the past ten years.
In this article, we’ll compare VUG vs. JPST. We’ll look at annual returns and performance, as well as at their fund composition and industry exposure. Moreover, I’ll also discuss VUG’s and JPST’s holdings, portfolio growth, and risk metrics and examine how these affect their overall returns.
|Name||Vanguard Growth Index Fund ETF Shares||JPMorgan Ultra-Short Income ETF|
|Category||Large Growth||Ultrashort Bond|
The Vanguard Growth Index Fund ETF Shares (VUG) is a Large Growth fund that is issued by Vanguard. It currently has 165.53B total assets under management and has yielded an average annual return of 17.58% over the past 10 years. The fund has a dividend yield of 0.57% 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%.
VUG’s dividend yield is 0.37% lower than that of JPST (0.57% vs. 0.94%). Also, VUG yielded on average 15.00% more per year over the past decade (17.58% vs. 2.57%). The expense ratio of VUG is 0.14 percentage points lower than JPST’s (0.04% vs. 0.18%).
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|Facebook Inc Class A||3.89%|
|Alphabet Inc Class A||3.43%|
|Alphabet Inc Class C||3.22%|
|Visa Inc Class A||1.78%|
|PayPal Holdings Inc||1.6%|
VUG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 10.13%, 9.52%, 6.88%, 3.89%, and 3.43%.
Alphabet Inc Class C (3.22%), Tesla Inc (2.44%), and NVIDIA Corp (2.21%) have a slightly smaller but still significant weight. Visa Inc Class A and PayPal Holdings Inc are also represented in the VUG’s holdings at 1.78% and 1.6%.
|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.
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The Vanguard Growth Index Fund ETF Shares (VUG) has a Beta of 1.04 with a Treynor Ratio of 16.13 and a Standard Deviation of 14.76. Its Alpha is 1.81 while VUG’s Sharpe Ratio is 1.13. Furthermore, the fund has a R-squared of 92.48 and a Mean Return of 1.44.
The JPMorgan Ultra-Short Income ETF (JPST) has a Treynor Ratio of 0 with a Standard Deviation of 0 and a Mean Return of 0. Its R-squared is 0 while JPST’s Sharpe Ratio is 0. Furthermore, the fund has a Alpha of 0 and a Beta of 0.
VUG’s Mean Return is 1.44 points higher than that of JPST and its R-squared is 92.48 points higher. With a Standard Deviation of 14.76, VUG is slightly more volatile than JPST. The Alpha and Beta of VUG are 1.81 points higher and 1.04 points higher than JPST’s Alpha and Beta.
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VUG had its best year in 2020 with an annual return of 40.16%. VUG’s worst year over the past decade yielded -3.32% and occurred in 2018. In most years the Vanguard Growth Index Fund ETF Shares provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 13.62%, 17.03%, and 17.11% 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 VUG would have resulted in a final balance of $18,599. This is a profit of $8,599 over 3 years and amounts to a compound annual growth rate (CAGR) of 17.58%.
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%.
VUG’s CAGR is 15.00 percentage points higher than that of JPST and as a result, would have yielded $7,808 more on a $10,000 investment. Thus, VUG outperformed JPST by 15.00% annually.
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