The iShares Core MSCI Emerging Markets ETF (IEMG) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IEMG is a iShares Diversified Emerging Mkts fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IEMG and MINT? And which fund is better?
The expense ratio of IEMG is 0.25 percentage points lower than MINT’s (0.11% vs. 0.36%). IEMG also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, IEMG has provided higher returns than MINT over the past ten years.
In this article, we’ll compare IEMG vs. MINT. We’ll look at annual returns and risk metrics, as well as at their industry exposure and portfolio growth. Moreover, I’ll also discuss IEMG’s and MINT’s holdings, fund composition, and performance and examine how these affect their overall returns.
|Name||iShares Core MSCI Emerging Markets ETF||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Diversified Emerging Mkts||Ultrashort Bond|
The iShares Core MSCI Emerging Markets ETF (IEMG) is a Diversified Emerging Mkts fund that is issued by iShares. It currently has 83.68B total assets under management and has yielded an average annual return of 7.41% over the past 10 years. The fund has a dividend yield of 1.78% with an expense ratio of 0.11%.
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%.
IEMG’s dividend yield is 1.22% higher than that of MINT (1.78% vs. 0.56%). Also, IEMG yielded on average 5.89% more per year over the past decade (7.41% vs. 1.52%). The expense ratio of IEMG is 0.25 percentage points lower than MINT’s (0.11% vs. 0.36%).
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|Taiwan Semiconductor Manufacturing Co Ltd||5.37%|
|Tencent Holdings Ltd||4.42%|
|Alibaba Group Holding Ltd Ordinary Shares||4.38%|
|Samsung Electronics Co Ltd||3.49%|
|Naspers Ltd Class N||0.93%|
|Reliance Industries Ltd Shs Dematerialised||0.83%|
|China Construction Bank Corp Class H||0.77%|
IEMG’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Samsung Electronics Co Ltd, and Meituan at 5.37%, 4.42%, 4.38%, 3.49%, and 1.52%.
Naspers Ltd Class N (0.93%), Vale SA (0.91%), and Reliance Industries Ltd Shs Dematerialised (0.83%) have a slightly smaller but still significant weight. China Construction Bank Corp Class H and Infosys Ltd are also represented in the IEMG’s holdings at 0.77% and 0.74%.
|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 Core MSCI Emerging Markets ETF (IEMG) has a Alpha of 0 with a Standard Deviation of 0 and a Treynor Ratio of 0. Its R-squared is 0 while IEMG’s Beta is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Mean Return 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 Mean Return of 0.12. Its Beta is 0.08 while MINT’s R-squared is 4.7. Furthermore, the fund has a Treynor Ratio of 10.8 and a Alpha of 0.62.
IEMG’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, IEMG is slightly less volatile than MINT. The Alpha and Beta of IEMG are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.
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IEMG had its best year in 2017 with an annual return of 36.78%. IEMG’s worst year over the past decade yielded -14.69% and occurred in 2018. In most years the iShares Core MSCI Emerging Markets ETF provided moderate returns such as in 2012, 2011, and 2010 where annual returns amounted to 0.0%, 0.0%, and 0.0% 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 IEMG would have resulted in a final balance of $15,037. This is a profit of $5,037 over 7 years and amounts to a compound annual growth rate (CAGR) of 7.41%.
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%.
IEMG’s CAGR is 5.89 percentage points higher than that of MINT and as a result, would have yielded $3,822 more on a $10,000 investment. Thus, IEMG outperformed MINT by 5.89% annually.
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