The iShares Core Dividend Growth ETF (DGRO) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. DGRO is a iShares Large Value fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between DGRO and MINT? And which fund is better?
The expense ratio of DGRO is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%). DGRO also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, DGRO has provided higher returns than MINT over the past 6 years.
In this article, we’ll compare DGRO vs. MINT. We’ll look at industry exposure and risk metrics, as well as at their portfolio growth and performance. Moreover, I’ll also discuss DGRO’s and MINT’s annual returns, fund composition, and holdings and examine how these affect their overall returns.
Summary
| DGRO | MINT | |
| Name | iShares Core Dividend Growth ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Large Value | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 20B | 14.02B |
| Avg. Return | 12.46% | 1.52% |
| Div. Yield | 2.04% | 0.56% |
| Expense Ratio | 0.08% | 0.36% |
The iShares Core Dividend Growth ETF (DGRO) is a Large Value fund that is issued by iShares. It currently has 20B total assets under management and has yielded an average annual return of 12.46% over the past 10 years. The fund has a dividend yield of 2.04% 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%.
DGRO’s dividend yield is 1.48% higher than that of MINT (2.04% vs. 0.56%). Also, DGRO yielded on average 10.94% more per year over the past decade (12.46% vs. 1.52%). The expense ratio of DGRO is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%).
Fund Composition
Holdings
| DGRO Holdings | Weight |
| Microsoft Corp | 3.29% |
| Apple Inc | 3.26% |
| Pfizer Inc | 2.89% |
| Johnson & Johnson | 2.87% |
| Procter & Gamble Co | 2.79% |
| Verizon Communications Inc | 2.68% |
| JPMorgan Chase & Co | 2.57% |
| The Home Depot Inc | 2.35% |
| Merck & Co Inc | 2.11% |
| Cisco Systems Inc | 1.98% |
DGRO’s Top Holdings are Microsoft Corp, Apple Inc, Pfizer Inc, Johnson & Johnson, and Procter & Gamble Co at 3.29%, 3.26%, 2.89%, 2.87%, and 2.79%.
Verizon Communications Inc (2.68%), JPMorgan Chase & Co (2.57%), and The Home Depot Inc (2.35%) have a slightly smaller but still significant weight. Merck & Co Inc and Cisco Systems Inc are also represented in the DGRO’s holdings at 2.11% and 1.98%.
| 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
| DGRO | MINT | |
| Mean Return | 0 | 0.12 |
| R-squared | 0 | 4.7 |
| Std. Deviation | 0 | 1.08 |
| Alpha | 0 | 0.62 |
| Beta | 0 | 0.08 |
| Sharpe Ratio | 0 | 0.78 |
| Treynor Ratio | 0 | 10.8 |
The iShares Core Dividend Growth ETF (DGRO) has a Standard Deviation of 0 with a Beta of 0 and a Mean Return of 0. Its Treynor Ratio is 0 while DGRO’s Alpha is 0. Furthermore, the fund has a R-squared of 0 and a Sharpe Ratio of 0.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Mean Return of 0.12 with a Standard Deviation of 1.08 and a Beta of 0.08. Its Alpha is 0.62 while MINT’s Treynor Ratio is 10.8. Furthermore, the fund has a Sharpe Ratio of 0.78 and a R-squared of 4.7.
DGRO’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, DGRO is slightly less volatile than MINT. The Alpha and Beta of DGRO are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | DGRO | MINT |
| 2020 | 9.47% | 1.63% |
| 2019 | 30.02% | 3.3% |
| 2018 | -2.24% | 1.72% |
| 2017 | 22.84% | 1.9% |
| 2016 | 15.27% | 1.99% |
| 2015 | -0.62% | 0.52% |
| 2014 | 0.0% | 0.53% |
| 2013 | 0.0% | 0.72% |
| 2012 | 0.0% | 2.48% |
| 2011 | 0.0% | 0.42% |
| 2010 | 0.0% | 1.72% |
DGRO had its best year in 2019 with an annual return of 30.02%. DGRO’s worst year over the past decade yielded -2.24% and occurred in 2018. In most years the iShares Core Dividend Growth ETF provided moderate returns such as in 2012, 2011, and 2010 where annual returns amounted to 0.0%, 0.0%, and 0.0% 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 |
| DGRO | $10,000 | $19,580 | 12.46% |
| MINT | $10,000 | $11,156 | 1.52% |
A $10,000 investment in DGRO would have resulted in a final balance of $19,580. This is a profit of $9,580 over 6 years and amounts to a compound annual growth rate (CAGR) of 12.46%.
With a $10,000 investment in MINT, the end total would have been $11,156. This equates to a $1,156 profit over 6 years and a compound annual growth rate (CAGR) of 1.52%.
DGRO’s CAGR is 10.94 percentage points higher than that of MINT and as a result, would have yielded $8,424 more on a $10,000 investment. Thus, DGRO outperformed MINT by 10.94% annually.
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