The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. BSV is a Vanguard Short-Term Bond fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between BSV and MINT? And which fund is better?
The expense ratio of BSV is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%). BSV is mostly comprised of AAA bonds and MINT has a high exposure to Others bond. Overall, BSV has provided higher returns than MINT over the past ten years.
In this article, we’ll compare BSV vs. MINT. We’ll look at performance and risk metrics, as well as at their holdings and annual returns. Moreover, I’ll also discuss BSV’s and MINT’s fund composition, industry exposure, and portfolio growth and examine how these affect their overall returns.
Summary
| BSV | MINT | |
| Name | Vanguard Short-Term Bond Index Fund ETF Shares | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Short-Term Bond | Ultrashort Bond |
| Issuer | Vanguard | PIMCO |
| AUM | 67.71B | 14.02B |
| Avg. Return | 2.27% | 1.52% |
| Div. Yield | 1.48% | 0.56% |
| Expense Ratio | 0.05% | 0.36% |
The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) is a Short-Term Bond fund that is issued by Vanguard. It currently has 67.71B total assets under management and has yielded an average annual return of 2.27% over the past 10 years. The fund has a dividend yield of 1.48% 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%.
BSV’s dividend yield is 0.92% higher than that of MINT (1.48% vs. 0.56%). Also, BSV yielded on average 0.75% more per year over the past decade (2.27% vs. 1.52%). The expense ratio of BSV is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%).
Fund Composition
Holdings
| BSV Bond Sectors | Weight |
| AAA | 71.65% |
| BBB | 13.08% |
| A | 11.95% |
| AA | 3.28% |
| Others | 0.03% |
| Below B | 0.01% |
| B | 0.0% |
| BB | 0.0% |
| US Government | 0.0% |
BSV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 71.65%, 13.08%, 11.95%, 3.28%, and 0.03%. The fund is less weighted towards Below B (0.01%), B (0.0%), and BB (0.0%) rated bonds.
| 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
| BSV | MINT | |
| Mean Return | 0.16 | 0.12 |
| R-squared | 78.38 | 4.7 |
| Std. Deviation | 1.33 | 1.08 |
| Alpha | 0.21 | 0.62 |
| Beta | 0.38 | 0.08 |
| Sharpe Ratio | 0.98 | 0.78 |
| Treynor Ratio | 3.33 | 10.8 |
The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) has a Beta of 0.38 with a Treynor Ratio of 3.33 and a Alpha of 0.21. Its Mean Return is 0.16 while BSV’s Standard Deviation is 1.33. Furthermore, the fund has a R-squared of 78.38 and a Sharpe Ratio of 0.98.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Standard Deviation of 1.08 with a Alpha of 0.62 and a Treynor Ratio of 10.8. Its R-squared is 4.7 while MINT’s Sharpe Ratio is 0.78. Furthermore, the fund has a Mean Return of 0.12 and a Beta of 0.08.
BSV’s Mean Return is 0.04 points higher than that of MINT and its R-squared is 73.68 points higher. With a Standard Deviation of 1.33, BSV is slightly more volatile than MINT. The Alpha and Beta of BSV are 0.41 points lower and 0.30 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | BSV | MINT |
| 2020 | 4.67% | 1.63% |
| 2019 | 4.92% | 3.3% |
| 2018 | 1.34% | 1.72% |
| 2017 | 1.2% | 1.9% |
| 2016 | 1.42% | 1.99% |
| 2015 | 0.92% | 0.52% |
| 2014 | 1.32% | 0.53% |
| 2013 | 0.17% | 0.72% |
| 2012 | 1.98% | 2.48% |
| 2011 | 3.04% | 0.42% |
| 2010 | 4.0% | 1.72% |
BSV had its best year in 2019 with an annual return of 4.92%. BSV’s worst year over the past decade yielded 0.17% and occurred in 2013. In most years the Vanguard Short-Term Bond Index Fund ETF Shares provided moderate returns such as in 2018, 2016, and 2012 where annual returns amounted to 1.34%, 1.42%, and 1.98% 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
| Fund | Initial Balance | Final Balance | CAGR |
| BSV | $10,000 | $12,294 | 2.27% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in BSV would have resulted in a final balance of $12,294. This is a profit of $2,294 over 10 years and amounts to a compound annual growth rate (CAGR) of 2.27%.
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%.
BSV’s CAGR is 0.75 percentage points higher than that of MINT and as a result, would have yielded $670 more on a $10,000 investment. Thus, BSV outperformed MINT by 0.75% annually.
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