ARKK vs. MINT: What’s The Difference?

The ARK Innovation ETF (ARKK) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. ARKK is a ARK ETF Trust Mid-Cap Growth fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between ARKK and MINT? And which fund is better?

The expense ratio of ARKK is 0.39 percentage points higher than MINT’s (0.75% vs. 0.36%). ARKK also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, ARKK has provided higher returns than MINT over the past 5 years.

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

Summary

ARKK MINT
Name ARK Innovation ETF PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Mid-Cap Growth Ultrashort Bond
Issuer ARK ETF Trust PIMCO
AUM 25.52B 14.02B
Avg. Return 55.45% 1.52%
Div. Yield 0.0% 0.56%
Expense Ratio 0.75% 0.36%

The ARK Innovation ETF (ARKK) is a Mid-Cap Growth fund that is issued by ARK ETF Trust. It currently has 25.52B total assets under management and has yielded an average annual return of 55.45% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.75%.

The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) is a Ultrashort Bond fund that is issued by PIMCO. It currently has 14.02B total assets under management and has yielded an average annual return of 1.52% over the past 10 years. The fund has a dividend yield of 0.56% with an expense ratio of 0.36%.

ARKK’s dividend yield is 0.56% lower than that of MINT (0.0% vs. 0.56%). Also, ARKK yielded on average 53.93% more per year over the past decade (55.45% vs. 1.52%). The expense ratio of ARKK is 0.39 percentage points higher than MINT’s (0.75% vs. 0.36%).

Fund Composition

Holdings

ARKK - Holdings

ARKK Holdings Weight
Tesla Inc 9.56%
Roku Inc Class A 6.48%
Teladoc Health Inc 5.76%
Square Inc A 4.37%
Zoom Video Communications Inc 4.36%
Shopify Inc A 4.27%
Spotify Technology SA 3.68%
Twilio Inc A 3.66%
Coinbase Global Inc Ordinary Shares – Class A 3.65%
Unity Software Inc Ordinary Shares 3.41%

ARKK’s Top Holdings are Tesla Inc, Roku Inc Class A, Teladoc Health Inc, Square Inc A, and Zoom Video Communications Inc at 9.56%, 6.48%, 5.76%, 4.37%, and 4.36%.

Shopify Inc A (4.27%), Spotify Technology SA (3.68%), and Twilio Inc A (3.66%) have a slightly smaller but still significant weight. Coinbase Global Inc Ordinary Shares – Class A and Unity Software Inc Ordinary Shares are also represented in the ARKK’s holdings at 3.65% and 3.41%.

MINT - Holdings

MINT Bond Sectors Weight
Others 0.0%
Below B 0.0%
B 0.0%
BB 0.0%
BBB 0.0%
A 0.0%
AA 0.0%
AAA 0.0%
US Government 0.0%

MINT’s Top Bond Sectors are ratings of Others, Below B, B, BB, and BBB at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards A (0.0%), AA (0.0%), and AAA (0.0%) rated bonds.

Risk Analysis

ARKK MINT
Mean Return 0 0.12
R-squared 0 4.7
Std. Deviation 0 1.08
Alpha 0 0.62
Beta 0 0.08
Sharpe Ratio 0 0.78
Treynor Ratio 0 10.8

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

The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Treynor Ratio of 10.8 with a Mean Return of 0.12 and a Beta of 0.08. Its R-squared is 4.7 while MINT’s Standard Deviation is 1.08. Furthermore, the fund has a Alpha of 0.62 and a Sharpe Ratio of 0.78.

ARKK’s Mean Return is 0.12 points lower than that of MINT and its R-squared is 4.70 points lower. With a Standard Deviation of 0, ARKK is slightly less volatile than MINT. The Alpha and Beta of ARKK are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.

Performance

Annual Returns

ARKK vs. MINT - Annual Returns

Year ARKK MINT
2020 152.52% 1.63%
2019 35.73% 3.3%
2018 3.58% 1.72%
2017 87.38% 1.9%
2016 -1.96% 1.99%
2015 3.76% 0.52%
2014 0.0% 0.53%
2013 0.0% 0.72%
2012 0.0% 2.48%
2011 0.0% 0.42%
2010 0.0% 1.72%

ARKK had its best year in 2020 with an annual return of 152.52%. ARKK’s worst year over the past decade yielded -1.96% and occurred in 2016. In most years the ARK Innovation ETF provided moderate returns such as in 2011, 2010, and 2018 where annual returns amounted to 0.0%, 0.0%, and 3.58% respectively.

The year 2019 was the strongest year for MINT, returning 3.3% on an annual basis. The poorest year for MINT in the last ten years was 2011, with a yield of 0.42%. Most years the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund has given investors modest returns, such as in 2020, 2018, and 2010, when gains were 1.63%, 1.72%, and 1.72% respectively.

Portfolio Growth

ARKK vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
ARKK $10,000 $65,218 55.45%
MINT $10,000 $11,098 1.52%

A $10,000 investment in ARKK would have resulted in a final balance of $65,218. This is a profit of $55,218 over 5 years and amounts to a compound annual growth rate (CAGR) of 55.45%.

With a $10,000 investment in MINT, the end total would have been $11,098. This equates to a $1,098 profit over 5 years and a compound annual growth rate (CAGR) of 1.52%.

ARKK’s CAGR is 53.93 percentage points higher than that of MINT and as a result, would have yielded $54,120 more on a $10,000 investment. Thus, ARKK outperformed MINT by 53.93% annually.


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