DFAC vs. MINT: What’s The Difference?

The Dimensional U.S. Core Equity 2 ETF (DFAC) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. DFAC is a Dimensional Fund Advisors Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between DFAC and MINT? And which fund is better?

The expense ratio of DFAC is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%). DFAC also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, DFAC has provided higher returns than MINT over the past 10 years.

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

Summary

DFAC MINT
Name Dimensional U.S. Core Equity 2 ETF PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Blend Ultrashort Bond
Issuer Dimensional Fund Advisors PIMCO
AUM 13.53B 14.02B
Avg. Return 13.93% 1.52%
Div. Yield 1.0% 0.56%
Expense Ratio 0.19% 0.36%

The Dimensional U.S. Core Equity 2 ETF (DFAC) is a Large Blend fund that is issued by Dimensional Fund Advisors. It currently has 13.53B total assets under management and has yielded an average annual return of 13.93% over the past 10 years. The fund has a dividend yield of 1.0% with an expense ratio of 0.19%.

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%.

DFAC’s dividend yield is 0.44% higher than that of MINT (1.0% vs. 0.56%). Also, DFAC yielded on average 12.41% more per year over the past decade (13.93% vs. 1.52%). The expense ratio of DFAC is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%).

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Fund Composition

Holdings

DFAC - Holdings

DFAC Holdings Weight
Apple Inc 4.7%
Microsoft Corp 3.81%
Amazon.com Inc 2.39%
Johnson & Johnson 1.05%
Facebook Inc Class A 1.05%
JPMorgan Chase & Co 1.0%
Alphabet Inc Class C 0.85%
Alphabet Inc Class A 0.84%
Berkshire Hathaway Inc Class B 0.75%
Visa Inc Class A 0.74%

DFAC’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Johnson & Johnson, and Facebook Inc Class A at 4.7%, 3.81%, 2.39%, 1.05%, and 1.05%.

JPMorgan Chase & Co (1.0%), Alphabet Inc Class C (0.85%), and Alphabet Inc Class A (0.84%) have a slightly smaller but still significant weight. Berkshire Hathaway Inc Class B and Visa Inc Class A are also represented in the DFAC’s holdings at 0.75% and 0.74%.

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.

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Risk Analysis

DFAC MINT
Mean Return 1.19 0.12
R-squared 95.1 4.7
Std. Deviation 15.55 1.08
Alpha -2.75 0.62
Beta 1.12 0.08
Sharpe Ratio 0.88 0.78
Treynor Ratio 11.85 10.8

The Dimensional U.S. Core Equity 2 ETF (DFAC) has a Sharpe Ratio of 0.88 with a Beta of 1.12 and a Standard Deviation of 15.55. Its Mean Return is 1.19 while DFAC’s Treynor Ratio is 11.85. Furthermore, the fund has a Alpha of -2.75 and a R-squared of 95.1.

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

DFAC’s Mean Return is 1.07 points higher than that of MINT and its R-squared is 90.40 points higher. With a Standard Deviation of 15.55, DFAC is slightly more volatile than MINT. The Alpha and Beta of DFAC are 3.37 points lower and 1.04 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

DFAC vs. MINT - Annual Returns

Year DFAC MINT
2020 15.8% 1.63%
2019 29.54% 3.3%
2018 -9.43% 1.72%
2017 18.82% 1.9%
2016 16.31% 1.99%
2015 -2.53% 0.52%
2014 9.56% 0.53%
2013 37.55% 0.72%
2012 17.93% 2.48%
2011 -1.96% 0.42%
2010 21.67% 1.72%

DFAC had its best year in 2013 with an annual return of 37.55%. DFAC’s worst year over the past decade yielded -9.43% and occurred in 2018. In most years the Dimensional U.S. Core Equity 2 ETF provided moderate returns such as in 2020, 2016, and 2012 where annual returns amounted to 15.8%, 16.31%, and 17.93% 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

DFAC vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
DFAC $10,000 $31,887 13.93%
MINT $10,000 $11,624 1.52%

A $10,000 investment in DFAC would have resulted in a final balance of $31,887. This is a profit of $21,887 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.93%.

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%.

DFAC’s CAGR is 12.41 percentage points higher than that of MINT and as a result, would have yielded $20,263 more on a $10,000 investment. Thus, DFAC outperformed MINT by 12.41% annually.


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