The iShares 7-10 Year Treasury Bond ETF (IEF) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IEF is a iShares Long Government fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IEF and MINT? And which fund is better?
The expense ratio of IEF is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%). IEF is mostly comprised of AAA bonds and MINT has a high exposure to Others bond. Overall, IEF has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare IEF vs. MINT. We’ll look at annual returns and performance, as well as at their portfolio growth and holdings. Moreover, I’ll also discuss IEF’s and MINT’s industry exposure, fund composition, and risk metrics and examine how these affect their overall returns.
Summary
| IEF | MINT | |
| Name | iShares 7-10 Year Treasury Bond ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Long Government | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 13.44B | 14.02B |
| Avg. Return | 5.06% | 1.52% |
| Div. Yield | 0.84% | 0.56% |
| Expense Ratio | 0.15% | 0.36% |
The iShares 7-10 Year Treasury Bond ETF (IEF) is a Long Government fund that is issued by iShares. It currently has 13.44B total assets under management and has yielded an average annual return of 5.06% over the past 10 years. The fund has a dividend yield of 0.84% with an expense ratio of 0.15%.
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%.
IEF’s dividend yield is 0.28% higher than that of MINT (0.84% vs. 0.56%). Also, IEF yielded on average 3.54% more per year over the past decade (5.06% vs. 1.52%). The expense ratio of IEF is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%).
Fund Composition
Holdings
| IEF 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% |
IEF’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
| IEF | MINT | |
| Mean Return | 0.32 | 0.12 |
| R-squared | 77.56 | 4.7 |
| Std. Deviation | 5.42 | 1.08 |
| Alpha | -1.2 | 0.62 |
| Beta | 1.59 | 0.08 |
| Sharpe Ratio | 0.6 | 0.78 |
| Treynor Ratio | 1.97 | 10.8 |
The iShares 7-10 Year Treasury Bond ETF (IEF) has a Beta of 1.59 with a R-squared of 77.56 and a Alpha of -1.2. Its Treynor Ratio is 1.97 while IEF’s Standard Deviation is 5.42. Furthermore, the fund has a Sharpe Ratio of 0.6 and a Mean Return of 0.32.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Treynor Ratio of 10.8 with a Mean Return of 0.12 and a Alpha of 0.62. Its R-squared is 4.7 while MINT’s Beta is 0.08. Furthermore, the fund has a Standard Deviation of 1.08 and a Sharpe Ratio of 0.78.
IEF’s Mean Return is 0.20 points higher than that of MINT and its R-squared is 72.86 points higher. With a Standard Deviation of 5.42, IEF is slightly more volatile than MINT. The Alpha and Beta of IEF are 1.82 points lower and 1.51 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | IEF | MINT |
| 2020 | 9.84% | 1.63% |
| 2019 | 8.38% | 3.3% |
| 2018 | 0.82% | 1.72% |
| 2017 | 2.47% | 1.9% |
| 2016 | 1.0% | 1.99% |
| 2015 | 1.55% | 0.52% |
| 2014 | 8.92% | 0.53% |
| 2013 | -6.12% | 0.72% |
| 2012 | 4.06% | 2.48% |
| 2011 | 15.46% | 0.42% |
| 2010 | 9.29% | 1.72% |
IEF had its best year in 2011 with an annual return of 15.46%. IEF’s worst year over the past decade yielded -6.12% and occurred in 2013. In most years the iShares 7-10 Year Treasury Bond ETF provided moderate returns such as in 2017, 2012, and 2019 where annual returns amounted to 2.47%, 4.06%, and 8.38% 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 |
| IEF | $10,000 | $15,497 | 5.06% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in IEF would have resulted in a final balance of $15,497. This is a profit of $5,497 over 10 years and amounts to a compound annual growth rate (CAGR) of 5.06%.
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%.
IEF’s CAGR is 3.54 percentage points higher than that of MINT and as a result, would have yielded $3,873 more on a $10,000 investment. Thus, IEF outperformed MINT by 3.54% annually.
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