The iShares Core MSCI EAFE ETF (IEFA) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IEFA is a iShares Foreign Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IEFA and MINT? And which fund is better?
The expense ratio of IEFA is 0.29 percentage points lower than MINT’s (0.07% vs. 0.36%). IEFA also has a high exposure to the industrials sector while MINT is mostly comprised of Others bonds. Overall, IEFA has provided higher returns than MINT over the past ten years.
In this article, we’ll compare IEFA vs. MINT. We’ll look at performance and fund composition, as well as at their industry exposure and risk metrics. Moreover, I’ll also discuss IEFA’s and MINT’s holdings, portfolio growth, and annual returns and examine how these affect their overall returns.
Summary
| IEFA | MINT | |
| Name | iShares Core MSCI EAFE ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Foreign Large Blend | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 95.78B | 14.02B |
| Avg. Return | 5.79% | 1.52% |
| Div. Yield | 2.28% | 0.56% |
| Expense Ratio | 0.07% | 0.36% |
The iShares Core MSCI EAFE ETF (IEFA) is a Foreign Large Blend fund that is issued by iShares. It currently has 95.78B total assets under management and has yielded an average annual return of 5.79% over the past 10 years. The fund has a dividend yield of 2.28% with an expense ratio of 0.07%.
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%.
IEFA’s dividend yield is 1.72% higher than that of MINT (2.28% vs. 0.56%). Also, IEFA yielded on average 4.27% more per year over the past decade (5.79% vs. 1.52%). The expense ratio of IEFA is 0.29 percentage points lower than MINT’s (0.07% vs. 0.36%).
Fund Composition
Holdings
| IEFA Holdings | Weight |
| Nestle SA | 1.77% |
| ASML Holding NV | 1.43% |
| Roche Holding AG | 1.31% |
| LVMH Moet Hennessy Louis Vuitton SE | 1.08% |
| Novartis AG | 1.0% |
| Toyota Motor Corp | 0.92% |
| AstraZeneca PLC | 0.78% |
| Unilever PLC | 0.76% |
| AIA Group Ltd | 0.74% |
| SAP SE | 0.73% |
IEFA’s Top Holdings are Nestle SA, ASML Holding NV, Roche Holding AG, LVMH Moet Hennessy Louis Vuitton SE, and Novartis AG at 1.77%, 1.43%, 1.31%, 1.08%, and 1.0%.
Toyota Motor Corp (0.92%), AstraZeneca PLC (0.78%), and Unilever PLC (0.76%) have a slightly smaller but still significant weight. AIA Group Ltd and SAP SE are also represented in the IEFA’s holdings at 0.74% and 0.73%.
| 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.
Performance
Annual Returns
| Year | IEFA | MINT |
| 2020 | 8.55% | 1.63% |
| 2019 | 22.67% | 3.3% |
| 2018 | -14.2% | 1.72% |
| 2017 | 26.42% | 1.9% |
| 2016 | 1.36% | 1.99% |
| 2015 | 0.53% | 0.52% |
| 2014 | -4.82% | 0.53% |
| 2013 | 23.73% | 0.72% |
| 2012 | 0.0% | 2.48% |
| 2011 | 0.0% | 0.42% |
| 2010 | 0.0% | 1.72% |
IEFA had its best year in 2017 with an annual return of 26.42%. IEFA’s worst year over the past decade yielded -14.2% and occurred in 2018. In most years the iShares Core MSCI EAFE ETF provided moderate returns such as in 2010, 2015, and 2016 where annual returns amounted to 0.0%, 0.53%, and 1.36% 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 |
| IEFA | $10,000 | $14,008 | 5.79% |
| MINT | $10,000 | $11,215 | 1.52% |
A $10,000 investment in IEFA would have resulted in a final balance of $14,008. This is a profit of $4,008 over 7 years and amounts to a compound annual growth rate (CAGR) of 5.79%.
With a $10,000 investment in MINT, the end total would have been $11,215. This equates to a $1,215 profit over 7 years and a compound annual growth rate (CAGR) of 1.52%.
IEFA’s CAGR is 4.27 percentage points higher than that of MINT and as a result, would have yielded $2,793 more on a $10,000 investment. Thus, IEFA outperformed MINT by 4.27% annually.
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