The iShares MSCI Emerging Markets ETF (EEM) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. EEM is a iShares Diversified Emerging Mkts fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between EEM and MINT? And which fund is better?
The expense ratio of EEM is 0.32 percentage points higher than MINT’s (0.68% vs. 0.36%). EEM also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, EEM has provided higher returns than MINT over the past ten years.
In this article, we’ll compare EEM vs. MINT. We’ll look at annual returns and industry exposure, as well as at their portfolio growth and risk metrics. Moreover, I’ll also discuss EEM’s and MINT’s performance, fund composition, and holdings and examine how these affect their overall returns.
Summary
| EEM | MINT | |
| Name | iShares MSCI Emerging Markets ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Diversified Emerging Mkts | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 30.33B | 14.02B |
| Avg. Return | 5.47% | 1.52% |
| Div. Yield | 1.48% | 0.56% |
| Expense Ratio | 0.68% | 0.36% |
The iShares MSCI Emerging Markets ETF (EEM) is a Diversified Emerging Mkts fund that is issued by iShares. It currently has 30.33B total assets under management and has yielded an average annual return of 5.47% over the past 10 years. The fund has a dividend yield of 1.48% with an expense ratio of 0.68%.
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%.
EEM’s dividend yield is 0.92% higher than that of MINT (1.48% vs. 0.56%). Also, EEM yielded on average 3.95% more per year over the past decade (5.47% vs. 1.52%). The expense ratio of EEM is 0.32 percentage points higher than MINT’s (0.68% vs. 0.36%).
Fund Composition
Holdings
| EEM Holdings | Weight |
| Taiwan Semiconductor Manufacturing Co Ltd | 6.36% |
| Alibaba Group Holding Ltd Ordinary Shares | 4.58% |
| Tencent Holdings Ltd | 4.41% |
| Samsung Electronics Co Ltd | 4.05% |
| Meituan | 1.24% |
| Vale SA | 1.04% |
| Naspers Ltd Class N | 1.04% |
| Reliance Industries Ltd Shs Dematerialised | 0.97% |
| Infosys Ltd | 0.92% |
| China Construction Bank Corp Class H | 0.83% |
EEM’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Alibaba Group Holding Ltd Ordinary Shares, Tencent Holdings Ltd, Samsung Electronics Co Ltd, and Meituan at 6.36%, 4.58%, 4.41%, 4.05%, and 1.24%.
Vale SA (1.04%), Naspers Ltd Class N (1.04%), and Reliance Industries Ltd Shs Dematerialised (0.97%) have a slightly smaller but still significant weight. Infosys Ltd and China Construction Bank Corp Class H are also represented in the EEM’s holdings at 0.92% and 0.83%.
| 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
| EEM | MINT | |
| Mean Return | 0.38 | 0.12 |
| R-squared | 83.5 | 4.7 |
| Std. Deviation | 17.79 | 1.08 |
| Alpha | -2.33 | 0.62 |
| Beta | 1.08 | 0.08 |
| Sharpe Ratio | 0.22 | 0.78 |
| Treynor Ratio | 2.22 | 10.8 |
The iShares MSCI Emerging Markets ETF (EEM) has a R-squared of 83.5 with a Beta of 1.08 and a Standard Deviation of 17.79. Its Treynor Ratio is 2.22 while EEM’s Alpha is -2.33. Furthermore, the fund has a Sharpe Ratio of 0.22 and a Mean Return of 0.38.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Beta of 0.08 with a Standard Deviation of 1.08 and a Alpha of 0.62. Its Mean Return is 0.12 while MINT’s R-squared is 4.7. Furthermore, the fund has a Sharpe Ratio of 0.78 and a Treynor Ratio of 10.8.
EEM’s Mean Return is 0.26 points higher than that of MINT and its R-squared is 78.80 points higher. With a Standard Deviation of 17.79, EEM is slightly more volatile than MINT. The Alpha and Beta of EEM are 2.95 points lower and 1.00 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | EEM | MINT |
| 2020 | 17.56% | 1.63% |
| 2019 | 17.67% | 3.3% |
| 2018 | -14.98% | 1.72% |
| 2017 | 36.42% | 1.9% |
| 2016 | 10.51% | 1.99% |
| 2015 | -15.41% | 0.52% |
| 2014 | -2.82% | 0.53% |
| 2013 | -3.14% | 0.72% |
| 2012 | 17.32% | 2.48% |
| 2011 | -18.87% | 0.42% |
| 2010 | 15.93% | 1.72% |
EEM had its best year in 2017 with an annual return of 36.42%. EEM’s worst year over the past decade yielded -18.87% and occurred in 2011. In most years the iShares MSCI Emerging Markets ETF provided moderate returns such as in 2014, 2016, and 2010 where annual returns amounted to -2.82%, 10.51%, and 15.93% 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
| Fund | Initial Balance | Final Balance | CAGR |
| EEM | $10,000 | $13,437 | 5.47% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in EEM would have resulted in a final balance of $13,437. This is a profit of $3,437 over 10 years and amounts to a compound annual growth rate (CAGR) of 5.47%.
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%.
EEM’s CAGR is 3.95 percentage points higher than that of MINT and as a result, would have yielded $1,813 more on a $10,000 investment. Thus, EEM outperformed MINT by 3.95% annually.
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