ITB vs JPEM Fund Comparison

A comparison between ITB and JPEM based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on ITB vs JPEM

Here's an in depth look at the differences between iShares U.S. Home Construction ETF($ITB) and JPMorgan Diversified Return Emerging Markets Equity ETF($JPEM).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

  • itb
  • ETF
  • Sector Equity
  • Consumer Cyclicals

iShares U.S. Home Construction ETF

Expenses: 0.42% (Better than 1% of similar funds)

This is an OK choice for a Consumer Cyclicals Sector Equity fund. See why »

  • jpem
  • ETF
  • International Stocks
  • Emerging Markets

JPMorgan Diversified Return Emerging Markets Equity ETF

Expenses: 0.44% (Better than 1% of similar funds)

This is a bad choice for a Emerging Markets International Stocks fund. See why »

Both $ITB and $JPEM are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

ITBJPEM
Market Score 9.0 /10 4.9 /10
Category Score 0.0 /10 5.0 /10
Total9.09.9

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for ITB is 3.3/10, while JPEM has a diversification score of 0.0/10.

In other words, ITB more closely matches it's benchmark.

Winner: $JPEM

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, ITB has an expense ratio of 0.42% while JPEM has an expense ratio of 0.44%.

Winner: $ITB

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, ITB is a large fund with 1.28 Billion in assets under management. JPEM, on the other hand, is a small fund with 269 Million in assets under management.

Winner: $ITB, iShares U.S. Home Construction ETF

Which Should You Choose? ITB or JPEM?

Comparing these two funds isn't an apples to apples comparison. ITB is a Sector EquityConsumer Cyclicals fund, while JPEM is a International StocksEmerging Markets fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives ITB a score of 56 and JPEM a score of 48.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$ITB

iShares U.S. Home Construction ETF

56

Read More
Ratings
Rating TypeRating
Diversification Score3/10
Expense Ratio Score6/10
Expense Rating6/10
Market Score9/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
Inception DateMay-1-2006
ExchangeBATS
Expense Ratio0.420%
Net Assets1.28 Billion
Yield0.55%
Holdings
DescriptionInfo
MarketSector Equity
CategoryConsumer Cyclicals
Sectors
  • Basic Materials 4.78%
  • Communication Services 0.00%
  • Consumer Cyclicals 78.41%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 16.81%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%
Regions
  • North America 100.00%

$JPEM

JPMorgan Diversified Return Emerging Markets Equity ETF

48

Read More
Ratings
Rating TypeRating
Diversification Score0/10
Expense Ratio Score9/10
Expense Rating6/10
Market Score5/10
Category Score5/10
Overview
OverviewDetails
Fund TypeETF
Inception DateJan-7-2015
ExchangeNYSE ARCA
Expense Ratio0.440%
Net Assets269 Million
Yield4.54%
Holdings
DescriptionInfo
MarketInternational Stocks
CategoryEmerging Markets
Sectors
  • Basic Materials 10.06%
  • Communication Services 14.32%
  • Consumer Cyclicals 7.63%
  • Consumer Defensive 11.40%
  • Energy 11.01%
  • Financial Services 17.42%
  • Healthcare 3.40%
  • Industrials 7.92%
  • Real Estate 1.31%
  • Technology 6.33%
  • Utilities 9.21%
Regions
  • Africa/Middle East 12.58%
  • Asia Developed 13.97%
  • Asia Emerging 43.29%
  • Europe Developed 1.03%
  • Europe Emerging 10.73%
  • Latin America 18.41%

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