The Vanguard Total Bond Market Index Fund ETF Shares (BND) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. BND is a Vanguard Intermediate-Term Bond fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between BND and MINT? And which fund is better?
The expense ratio of BND is 0.33 percentage points lower than MINT’s (0.03% vs. 0.36%). BND is mostly comprised of AAA bonds and MINT has a high exposure to Others bond. Overall, BND has provided higher returns than MINT over the past ten years.
In this article, we’ll compare BND vs. MINT. We’ll look at portfolio growth and risk metrics, as well as at their holdings and fund composition. Moreover, I’ll also discuss BND’s and MINT’s industry exposure, annual returns, and performance and examine how these affect their overall returns.
|Name||Vanguard Total Bond Market Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Intermediate-Term Bond||Ultrashort Bond|
The Vanguard Total Bond Market Index Fund ETF Shares (BND) is a Intermediate-Term Bond fund that is issued by Vanguard. It currently has 312.15B total assets under management and has yielded an average annual return of 4.09% over the past 10 years. The fund has a dividend yield of 2.02% with an expense ratio of 0.03%.
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%.
BND’s dividend yield is 1.46% higher than that of MINT (2.02% vs. 0.56%). Also, BND yielded on average 2.57% more per year over the past decade (4.09% vs. 1.52%). The expense ratio of BND is 0.33 percentage points lower than MINT’s (0.03% vs. 0.36%).
|BND Bond Sectors||Weight|
BND’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Below B at 68.72%, 16.17%, 11.87%, 3.34%, and 0.01%. The fund is less weighted towards B (0.0%), BB (0.0%), and US Government (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.
The Vanguard Total Bond Market Index Fund ETF Shares (BND) has a Mean Return of 0.28 with a R-squared of 99.34 and a Treynor Ratio of 2.64. Its Beta is 1.04 while BND’s Sharpe Ratio is 0.88. Furthermore, the fund has a Standard Deviation of 3.14 and a Alpha of -0.14.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Beta of 0.08 with a Alpha of 0.62 and a Standard Deviation of 1.08. Its R-squared is 4.7 while MINT’s Sharpe Ratio is 0.78. Furthermore, the fund has a Treynor Ratio of 10.8 and a Mean Return of 0.12.
BND’s Mean Return is 0.16 points higher than that of MINT and its R-squared is 94.64 points higher. With a Standard Deviation of 3.14, BND is slightly more volatile than MINT. The Alpha and Beta of BND are 0.76 points lower and 0.96 points higher than MINT’s Alpha and Beta.
BND had its best year in 2019 with an annual return of 8.71%. BND’s worst year over the past decade yielded -2.14% and occurred in 2013. In most years the Vanguard Total Bond Market Index Fund ETF Shares provided moderate returns such as in 2017, 2012, and 2014 where annual returns amounted to 3.62%, 4.04%, and 5.96% 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 BND would have resulted in a final balance of $14,511. This is a profit of $4,511 over 10 years and amounts to a compound annual growth rate (CAGR) of 4.09%.
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%.
BND’s CAGR is 2.57 percentage points higher than that of MINT and as a result, would have yielded $2,887 more on a $10,000 investment. Thus, BND outperformed MINT by 2.57% annually.
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