The iShares Gold Trust (IAU) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IAU is a iShares N/A fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IAU and MINT? And which fund is better?
The expense ratio of IAU is 0.11 percentage points lower than MINT’s (0.25% vs. 0.36%). IAU also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, IAU has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare IAU vs. MINT. We’ll look at holdings and industry exposure, as well as at their risk metrics and annual returns. Moreover, I’ll also discuss IAU’s and MINT’s fund composition, performance, and portfolio growth and examine how these affect their overall returns.
Summary
| IAU | MINT | |
| Name | iShares Gold Trust | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | N/A | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 28.61B | 14.02B |
| Avg. Return | 6.03% | 1.52% |
| Div. Yield | 0.0% | 0.56% |
| Expense Ratio | 0.25% | 0.36% |
The iShares Gold Trust (IAU) is a N/A fund that is issued by iShares. It currently has 28.61B total assets under management and has yielded an average annual return of 6.03% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.25%.
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%.
IAU’s dividend yield is 0.56% lower than that of MINT (0.0% vs. 0.56%). Also, IAU yielded on average 4.51% more per year over the past decade (6.03% vs. 1.52%). The expense ratio of IAU is 0.11 percentage points lower than MINT’s (0.25% vs. 0.36%).
Fund Composition
Holdings
| IAU Holdings | Weight |
| Gold | 100.0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
IAU’s Top Holdings are Gold, N/A, N/A, N/A, and N/A at 100.0%, 0%, 0%, 0%, and 0%.
N/A (0%), N/A (0%), and N/A (0%) have a slightly smaller but still significant weight. N/A and N/A are also represented in the IAU’s holdings at 0% and 0%.
| 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
| IAU | MINT | |
| Mean Return | 0.23 | 0.12 |
| R-squared | 16.03 | 4.7 |
| Std. Deviation | 16.97 | 1.08 |
| Alpha | 4.16 | 0.62 |
| Beta | 0.48 | 0.08 |
| Sharpe Ratio | 0.13 | 0.78 |
| Treynor Ratio | 1.5 | 10.8 |
The iShares Gold Trust (IAU) has a R-squared of 16.03 with a Mean Return of 0.23 and a Sharpe Ratio of 0.13. Its Alpha is 4.16 while IAU’s Treynor Ratio is 1.5. Furthermore, the fund has a Standard Deviation of 16.97 and a Beta of 0.48.
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 Beta of 0.08. Its Alpha is 0.62 while MINT’s Treynor Ratio is 10.8. Furthermore, the fund has a Mean Return of 0.12 and a R-squared of 4.7.
IAU’s Mean Return is 0.11 points higher than that of MINT and its R-squared is 11.33 points higher. With a Standard Deviation of 16.97, IAU is slightly more volatile than MINT. The Alpha and Beta of IAU are 3.54 points higher and 0.40 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | IAU | MINT |
| 2020 | 23.86% | 1.63% |
| 2019 | 18.54% | 3.3% |
| 2018 | -1.39% | 1.72% |
| 2017 | 11.58% | 1.9% |
| 2016 | 8.85% | 1.99% |
| 2015 | -11.65% | 0.52% |
| 2014 | -0.44% | 0.53% |
| 2013 | -27.96% | 0.72% |
| 2012 | 8.37% | 2.48% |
| 2011 | 8.66% | 0.42% |
| 2010 | 27.93% | 1.72% |
IAU had its best year in 2010 with an annual return of 27.93%. IAU’s worst year over the past decade yielded -27.96% and occurred in 2013. In most years the iShares Gold Trust provided moderate returns such as in 2012, 2011, and 2016 where annual returns amounted to 8.37%, 8.66%, and 8.85% 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 |
| IAU | $10,000 | $13,121 | 6.03% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in IAU would have resulted in a final balance of $13,121. This is a profit of $3,121 over 10 years and amounts to a compound annual growth rate (CAGR) of 6.03%.
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%.
IAU’s CAGR is 4.51 percentage points higher than that of MINT and as a result, would have yielded $1,497 more on a $10,000 investment. Thus, IAU outperformed MINT by 4.51% annually.
Current recommendations:
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.
I believe that money is just a means to an end: to be free to spend your time as you wish, to maximize your positive impact on the world.
