The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between BNDX and MINT? And which fund is better?
The expense ratio of BNDX is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%). BNDX is mostly comprised of A bonds and MINT has a high exposure to Others bond. Overall, BNDX has provided higher returns than MINT over the past ten years.
In this article, we’ll compare BNDX vs. MINT. We’ll look at performance and annual returns, as well as at their holdings and risk metrics. Moreover, I’ll also discuss BNDX’s and MINT’s fund composition, industry exposure, and portfolio growth and examine how these affect their overall returns.
|Name||Vanguard Total International Bond Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) is a N/A fund that is issued by Vanguard. It currently has 116.41B total assets under management and has yielded an average annual return of 4.63% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.08%.
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%.
BNDX’s dividend yield is 0.38% higher than that of MINT (0.94% vs. 0.56%). Also, BNDX yielded on average 3.11% more per year over the past decade (4.63% vs. 1.52%). The expense ratio of BNDX is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%).
FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).
|BNDX Bond Sectors||Weight|
BNDX’s Top Bond Sectors are ratings of A, AA, AAA, BBB, and Others at 29.19%, 26.79%, 21.59%, 19.41%, and 1.57%. The fund is less weighted towards Below B (1.45%), 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.
NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Standard Deviation of 0 with a Treynor Ratio of 0 and a Alpha of 0. Its Mean Return is 0 while BNDX’s R-squared is 0. Furthermore, the fund has a Beta of 0 and a Sharpe Ratio of 0.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Sharpe Ratio of 0.78 with a Alpha of 0.62 and a Beta of 0.08. Its Standard Deviation is 1.08 while MINT’s R-squared is 4.7. Furthermore, the fund has a Treynor Ratio of 10.8 and a Mean Return of 0.12.
BNDX’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, BNDX is slightly less volatile than MINT. The Alpha and Beta of BNDX are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.
FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!
BNDX had its best year in 2014 with an annual return of 8.83%. BNDX’s worst year over the past decade yielded 0.0% and occurred in 2013. In most years the Vanguard Total International Bond Index Fund ETF Shares provided moderate returns such as in 2015, 2017, and 2018 where annual returns amounted to 1.08%, 2.4%, and 2.94% 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 BNDX would have resulted in a final balance of $13,695. This is a profit of $3,695 over 7 years and amounts to a compound annual growth rate (CAGR) of 4.63%.
With a $10,000 investment in MINT, the end total would have been $11,215. This equates to a $1,215 profit over 7 years and a compound annual growth rate (CAGR) of 1.52%.
BNDX’s CAGR is 3.11 percentage points higher than that of MINT and as a result, would have yielded $2,480 more on a $10,000 investment. Thus, BNDX outperformed MINT by 3.11% annually.
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.