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

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

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

Summary

VXUSJPST
NameVanguard Total International Stock Index Fund ETF SharesJPMorgan Ultra-Short Income ETF
CategoryForeign Large BlendUltrashort Bond
IssuerVanguardJPMorgan
AUM404.73B17.32B
Avg. Return8.41%2.57%
Div. Yield2.44%0.94%
Expense Ratio0.08%0.18%

The Vanguard Total International Stock Index Fund ETF Shares (VXUS) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 404.73B total assets under management and has yielded an average annual return of 8.41% over the past 10 years. The fund has a dividend yield of 2.44% 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%.

VXUS’s dividend yield is 1.50% higher than that of JPST (2.44% vs. 0.94%). Also, VXUS yielded on average 5.83% more per year over the past decade (8.41% vs. 2.57%). The expense ratio of VXUS is 0.10 percentage points lower than JPST’s (0.08% vs. 0.18%).

Fund Composition

Holdings

VXUS - Holdings

VXUS HoldingsWeight
Taiwan Semiconductor Manufacturing Co Ltd1.62%
Tencent Holdings Ltd1.41%
Alibaba Group Holding Ltd Ordinary Shares1.26%
Nestle SA1.1%
Samsung Electronics Co Ltd1.05%
ASML Holding NV0.86%
Roche Holding AG0.81%
Toyota Motor Corp0.67%
LVMH Moet Hennessy Louis Vuitton SE0.61%
Novartis AG0.6%

VXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.62%, 1.41%, 1.26%, 1.1%, and 1.05%.

ASML Holding NV (0.86%), Roche Holding AG (0.81%), and Toyota Motor Corp (0.67%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VXUS’s holdings at 0.61% and 0.6%.

JPST - Holdings

JPST Bond SectorsWeight
A39.21%
BBB36.75%
AAA14.9%
AA9.14%
Others0.0%
Below B0.0%
B0.0%
BB0.0%
US Government0.0%

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

VXUSJPST
Mean Return0.560
R-squared98.390
Std. Deviation15.120
Alpha0.310
Beta0.990
Sharpe Ratio0.40
Treynor Ratio5.140

The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has a Standard Deviation of 15.12 with a Mean Return of 0.56 and a Sharpe Ratio of 0.4. Its Treynor Ratio is 5.14 while VXUS’s Beta is 0.99. Furthermore, the fund has a Alpha of 0.31 and a R-squared of 98.39.

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

VXUS’s Mean Return is 0.56 points higher than that of JPST and its R-squared is 98.39 points higher. With a Standard Deviation of 15.12, VXUS is slightly more volatile than JPST. The Alpha and Beta of VXUS are 0.31 points higher and 0.99 points higher than JPST’s Alpha and Beta.

Performance

Annual Returns

VXUS vs. JPST - Annual Returns

YearVXUSJPST
202011.32%2.17%
201921.58%3.36%
2018-14.42%2.19%
201727.52%0.0%
20164.72%0.0%
2015-4.28%0.0%
2014-4.17%0.0%
201315.16%0.0%
201218.22%0.0%
20110.0%0.0%
20100.0%0.0%

VXUS had its best year in 2017 with an annual return of 27.52%. VXUS’s worst year over the past decade yielded -14.42% and occurred in 2018. In most years the Vanguard Total International Stock Index Fund ETF Shares provided moderate returns such as in 2010, 2016, and 2020 where annual returns amounted to 0.0%, 4.72%, and 11.32% 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

VXUS vs. JPST - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VXUS$10,000$11,5828.41%
JPST$10,000$10,7912.57%

A $10,000 investment in VXUS would have resulted in a final balance of $11,582. This is a profit of $1,582 over 3 years and amounts to a compound annual growth rate (CAGR) of 8.41%.

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%.

VXUS’s CAGR is 5.83 percentage points higher than that of JPST and as a result, would have yielded $791 more on a $10,000 investment. Thus, VXUS outperformed JPST by 5.83% annually.

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