The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. BIV is a Vanguard Intermediate-Term Bond fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between BIV and MINT? And which fund is better?
The expense ratio of BIV is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%). BIV is mostly comprised of AAA bonds and MINT has a high exposure to Others bond. Overall, BIV has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare BIV vs. MINT. We’ll look at risk metrics and industry exposure, as well as at their fund composition and portfolio growth. Moreover, I’ll also discuss BIV’s and MINT’s annual returns, performance, and holdings and examine how these affect their overall returns.
|Name||Vanguard Intermediate-Term Bond Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Intermediate-Term Bond||Ultrashort Bond|
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) is a Intermediate-Term Bond fund that is issued by Vanguard. It currently has 39.05B total assets under management and has yielded an average annual return of 5.31% over the past 10 years. The fund has a dividend yield of 2.06% with an expense ratio of 0.05%.
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%.
BIV’s dividend yield is 1.50% higher than that of MINT (2.06% vs. 0.56%). Also, BIV yielded on average 3.79% more per year over the past decade (5.31% vs. 1.52%). The expense ratio of BIV is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%).
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|BIV Bond Sectors||Weight|
BIV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 54.51%, 25.24%, 16.97%, 3.1%, and 0.15%. The fund is less weighted towards Below B (0.03%), B (0.0%), and BB (0.0%) rated bonds.
|MINT Bond Sectors||Weight|
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.
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The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) has a Treynor Ratio of 2.72 with a Mean Return of 0.35 and a Beta of 1.33. Its Sharpe Ratio is 0.89 while BIV’s Alpha is -0.07. Furthermore, the fund has a Standard Deviation of 4.09 and a R-squared of 95.12.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Beta of 0.08 with a Standard Deviation of 1.08 and a Alpha of 0.62. Its Sharpe Ratio is 0.78 while MINT’s Mean Return is 0.12. Furthermore, the fund has a R-squared of 4.7 and a Treynor Ratio of 10.8.
BIV’s Mean Return is 0.23 points higher than that of MINT and its R-squared is 90.42 points higher. With a Standard Deviation of 4.09, BIV is slightly more volatile than MINT. The Alpha and Beta of BIV are 0.69 points lower and 1.25 points higher than MINT’s Alpha and Beta.
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BIV had its best year in 2011 with an annual return of 10.62%. BIV’s worst year over the past decade yielded -3.44% and occurred in 2013. In most years the Vanguard Intermediate-Term Bond Index Fund ETF Shares provided moderate returns such as in 2017, 2014, and 2012 where annual returns amounted to 3.8%, 7.0%, and 7.02% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in BIV would have resulted in a final balance of $15,967. This is a profit of $5,967 over 10 years and amounts to a compound annual growth rate (CAGR) of 5.31%.
With a $10,000 investment in MINT, the end total would have been $11,624. This equates to a $1,624 profit over 10 years and a compound annual growth rate (CAGR) of 1.52%.
BIV’s CAGR is 3.79 percentage points higher than that of MINT and as a result, would have yielded $4,343 more on a $10,000 investment. Thus, BIV outperformed MINT by 3.79% annually.
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