The iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. EMB is a iShares Emerging Markets Bond fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between EMB and MINT? And which fund is better?
The expense ratio of EMB is 0.03 percentage points higher than MINT’s (0.39% vs. 0.36%). EMB is mostly comprised of BBB bonds and MINT has a high exposure to Others bond. Overall, EMB has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare EMB vs. MINT. We’ll look at holdings and portfolio growth, as well as at their fund composition and risk metrics. Moreover, I’ll also discuss EMB’s and MINT’s annual returns, industry exposure, and performance and examine how these affect their overall returns.
|Name||iShares J.P. Morgan USD Emerging Markets Bond ETF||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Emerging Markets Bond||Ultrashort Bond|
The iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is a Emerging Markets Bond fund that is issued by iShares. It currently has 19.76B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 3.85% with an expense ratio of 0.39%.
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%.
EMB’s dividend yield is 3.29% higher than that of MINT (3.85% vs. 0.56%). Also, EMB yielded on average 4.91% more per year over the past decade (6.43% vs. 1.52%). The expense ratio of EMB is 0.03 percentage points higher than MINT’s (0.39% vs. 0.36%).
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|EMB Bond Sectors||Weight|
EMB’s Top Bond Sectors are ratings of BBB, B, BB, A, and AA at 33.79%, 21.97%, 16.92%, 13.67%, and 7.97%. The fund is less weighted towards Below B (4.49%), Others (1.11%), and AAA (0.09%) rated bonds.
|MINT Bond Sectors||Weight|
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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The iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) has a Sharpe Ratio of 0.55 with a Treynor Ratio of 3.24 and a Mean Return of 0.44. Its Standard Deviation is 8.44 while EMB’s Alpha is 0.89. Furthermore, the fund has a Beta of 1.36 and a R-squared of 23.34.
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 R-squared of 4.7. Its Beta is 0.08 while MINT’s Mean Return is 0.12. Furthermore, the fund has a Sharpe Ratio of 0.78 and a Treynor Ratio of 10.8.
EMB’s Mean Return is 0.32 points higher than that of MINT and its R-squared is 18.64 points higher. With a Standard Deviation of 8.44, EMB is slightly more volatile than MINT. The Alpha and Beta of EMB are 0.27 points higher and 1.28 points higher than MINT’s Alpha and Beta.
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EMB had its best year in 2012 with an annual return of 17.64%. EMB’s worst year over the past decade yielded -7.42% and occurred in 2013. In most years the iShares J.P. Morgan USD Emerging Markets Bond ETF provided moderate returns such as in 2014, 2011, and 2016 where annual returns amounted to 6.69%, 7.2%, and 9.41% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in EMB would have resulted in a final balance of $17,309. This is a profit of $7,309 over 10 years and amounts to a compound annual growth rate (CAGR) of 6.43%.
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%.
EMB’s CAGR is 4.91 percentage points higher than that of MINT and as a result, would have yielded $5,685 more on a $10,000 investment. Thus, EMB outperformed MINT by 4.91% annually.
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