DIA vs. MINT: What’s The Difference?

The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between DIA and MINT? And which fund is better?

The expense ratio of DIA is 0.20 percentage points lower than MINT’s (0.16% vs. 0.36%). DIA also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, DIA has provided higher returns than MINT over the past ten years.

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

Summary

DIA MINT
Name SPDR Dow Jones Industrial Average ETF Trust PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Value Ultrashort Bond
Issuer SPDR State Street Global Advisors PIMCO
AUM 30.46B 14.02B
Avg. Return 13.35% 1.52%
Div. Yield 1.61% 0.56%
Expense Ratio 0.16% 0.36%

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

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%.

DIA’s dividend yield is 1.05% higher than that of MINT (1.61% vs. 0.56%). Also, DIA yielded on average 11.83% more per year over the past decade (13.35% vs. 1.52%). The expense ratio of DIA is 0.20 percentage points lower than MINT’s (0.16% vs. 0.36%).

Fund Composition

Holdings

DIA - Holdings

DIA Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

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.

Risk Analysis

DIA MINT
Mean Return 1.13 0.12
R-squared 93.31 4.7
Std. Deviation 13.68 1.08
Alpha -0.94 0.62
Beta 0.97 0.08
Sharpe Ratio 0.94 0.78
Treynor Ratio 13.07 10.8

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a R-squared of 93.31 with a Beta of 0.97 and a Mean Return of 1.13. Its Alpha is -0.94 while DIA’s Sharpe Ratio is 0.94. Furthermore, the fund has a Standard Deviation of 13.68 and a Treynor Ratio of 13.07.

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 Beta is 0.08 while MINT’s Sharpe Ratio is 0.78. Furthermore, the fund has a R-squared of 4.7 and a Mean Return of 0.12.

DIA’s Mean Return is 1.01 points higher than that of MINT and its R-squared is 88.61 points higher. With a Standard Deviation of 13.68, DIA is slightly more volatile than MINT. The Alpha and Beta of DIA are 1.56 points lower and 0.89 points higher than MINT’s Alpha and Beta.

Performance

Annual Returns

DIA vs. MINT - Annual Returns

Year DIA MINT
2020 9.63% 1.63%
2019 25.09% 3.3%
2018 -3.6% 1.72%
2017 27.97% 1.9%
2016 16.28% 1.99%
2015 0.1% 0.52%
2014 9.88% 0.53%
2013 29.41% 0.72%
2012 10.04% 2.48%
2011 8.21% 0.42%
2010 13.87% 1.72%

DIA had its best year in 2013 with an annual return of 29.41%. DIA’s worst year over the past decade yielded -3.6% and occurred in 2018. In most years the SPDR Dow Jones Industrial Average ETF Trust provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 9.88%, 10.04%, and 13.87% 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

DIA vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
DIA $10,000 $33,341 13.35%
MINT $10,000 $11,624 1.52%

A $10,000 investment in DIA would have resulted in a final balance of $33,341. This is a profit of $23,341 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.35%.

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%.

DIA’s CAGR is 11.83 percentage points higher than that of MINT and as a result, would have yielded $21,717 more on a $10,000 investment. Thus, DIA outperformed MINT by 11.83% annually.


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