The iShares U.S. Treasury Bond ETF (GOVT) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. GOVT is a iShares Intermediate Government fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between GOVT and MINT? And which fund is better?
The expense ratio of GOVT is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%). GOVT is mostly comprised of AAA bonds and MINT has a high exposure to Others bond. Overall, GOVT has provided higher returns than MINT over the past 8 years.
In this article, we’ll compare GOVT vs. MINT. We’ll look at risk metrics and portfolio growth, as well as at their fund composition and annual returns. Moreover, I’ll also discuss GOVT’s and MINT’s performance, holdings, and industry exposure and examine how these affect their overall returns.
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Summary
| GOVT | MINT | |
| Name | iShares U.S. Treasury Bond ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Intermediate Government | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 17.07B | 14.02B |
| Avg. Return | 2.67% | 1.52% |
| Div. Yield | 1.0% | 0.56% |
| Expense Ratio | 0.05% | 0.36% |
The iShares U.S. Treasury Bond ETF (GOVT) is a Intermediate Government fund that is issued by iShares. It currently has 17.07B total assets under management and has yielded an average annual return of 2.67% over the past 10 years. The fund has a dividend yield of 1.0% with an expense ratio of 0.05%.
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%.
GOVT’s dividend yield is 0.44% higher than that of MINT (1.0% vs. 0.56%). Also, GOVT yielded on average 1.15% more per year over the past decade (2.67% vs. 1.52%). The expense ratio of GOVT is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%).
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Fund Composition
Holdings
| GOVT Bond Sectors | Weight |
| AAA | 100.0% |
| Others | 0.0% |
| Below B | 0.0% |
| B | 0.0% |
| BB | 0.0% |
| BBB | 0.0% |
| A | 0.0% |
| AA | 0.0% |
| US Government | 0.0% |
GOVT’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 100.0%, 0.0%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.
| 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
| GOVT | 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 U.S. Treasury Bond ETF (GOVT) has a Beta of 0 with a Alpha of 0 and a R-squared of 0. Its Sharpe Ratio is 0 while GOVT’s Mean Return is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Standard Deviation of 0.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Sharpe Ratio of 0.78 with a Standard Deviation of 1.08 and a Treynor Ratio of 10.8. Its R-squared is 4.7 while MINT’s Beta is 0.08. Furthermore, the fund has a Mean Return of 0.12 and a Alpha of 0.62.
GOVT’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, GOVT is slightly less volatile than MINT. The Alpha and Beta of GOVT are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.
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Performance
Annual Returns
| Year | GOVT | MINT |
| 2020 | 7.92% | 1.63% |
| 2019 | 6.71% | 3.3% |
| 2018 | 0.74% | 1.72% |
| 2017 | 2.19% | 1.9% |
| 2016 | 0.92% | 1.99% |
| 2015 | 0.76% | 0.52% |
| 2014 | 4.99% | 0.53% |
| 2013 | -2.84% | 0.72% |
| 2012 | 0.0% | 2.48% |
| 2011 | 0.0% | 0.42% |
| 2010 | 0.0% | 1.72% |
GOVT had its best year in 2020 with an annual return of 7.92%. GOVT’s worst year over the past decade yielded -2.84% and occurred in 2013. In most years the iShares U.S. Treasury Bond ETF provided moderate returns such as in 2018, 2015, and 2016 where annual returns amounted to 0.74%, 0.76%, and 0.92% 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 |
| GOVT | $10,000 | $12,297 | 2.67% |
| MINT | $10,000 | $11,295 | 1.52% |
A $10,000 investment in GOVT would have resulted in a final balance of $12,297. This is a profit of $2,297 over 8 years and amounts to a compound annual growth rate (CAGR) of 2.67%.
With a $10,000 investment in MINT, the end total would have been $11,295. This equates to a $1,295 profit over 8 years and a compound annual growth rate (CAGR) of 1.52%.
GOVT’s CAGR is 1.15 percentage points higher than that of MINT and as a result, would have yielded $1,002 more on a $10,000 investment. Thus, GOVT outperformed MINT by 1.15% annually.
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