The iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IGSB is a iShares Short-Term Bond fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IGSB and MINT? And which fund is better?
The expense ratio of IGSB is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%). IGSB is mostly comprised of BBB bonds and MINT has a high exposure to Others bond. Overall, IGSB has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare IGSB vs. MINT. We’ll look at performance and holdings, as well as at their risk metrics and industry exposure. Moreover, I’ll also discuss IGSB’s and MINT’s portfolio growth, fund composition, and annual returns and examine how these affect their overall returns.
Summary
| IGSB | MINT | |
| Name | iShares 1-5 Year Investment Grade Corporate Bond ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Short-Term Bond | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 26.63B | 14.02B |
| Avg. Return | 2.51% | 1.52% |
| Div. Yield | 2.02% | 0.56% |
| Expense Ratio | 0.06% | 0.36% |
The iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is a Short-Term Bond fund that is issued by iShares. It currently has 26.63B total assets under management and has yielded an average annual return of 2.51% over the past 10 years. The fund has a dividend yield of 2.02% with an expense ratio of 0.06%.
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%.
IGSB’s dividend yield is 1.46% higher than that of MINT (2.02% vs. 0.56%). Also, IGSB yielded on average 0.99% more per year over the past decade (2.51% vs. 1.52%). The expense ratio of IGSB is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%).
Fund Composition
Holdings
| IGSB Bond Sectors | Weight |
| BBB | 50.48% |
| A | 40.04% |
| AA | 7.46% |
| AAA | 2.21% |
| BB | 0.09% |
| Below B | 0.0% |
| B | 0.0% |
| US Government | 0.0% |
| Others | -0.28% |
IGSB’s Top Bond Sectors are ratings of BBB, A, AA, AAA, and BB at 50.48%, 40.04%, 7.46%, 2.21%, and 0.09%. The fund is less weighted towards Below B (0.0%), B (0.0%), and US Government (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
| IGSB | MINT | |
| Mean Return | 0.19 | 0.12 |
| R-squared | 26.13 | 4.7 |
| Std. Deviation | 2 | 1.08 |
| Alpha | 0.69 | 0.62 |
| Beta | 0.34 | 0.08 |
| Sharpe Ratio | 0.82 | 0.78 |
| Treynor Ratio | 4.82 | 10.8 |
The iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) has a Sharpe Ratio of 0.82 with a Beta of 0.34 and a Mean Return of 0.19. Its Treynor Ratio is 4.82 while IGSB’s Standard Deviation is 2. Furthermore, the fund has a R-squared of 26.13 and a Alpha of 0.69.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Mean Return of 0.12 with a Treynor Ratio of 10.8 and a Sharpe Ratio of 0.78. Its Alpha is 0.62 while MINT’s Beta is 0.08. Furthermore, the fund has a Standard Deviation of 1.08 and a R-squared of 4.7.
IGSB’s Mean Return is 0.07 points higher than that of MINT and its R-squared is 21.43 points higher. With a Standard Deviation of 2, IGSB is slightly more volatile than MINT. The Alpha and Beta of IGSB are 0.07 points higher and 0.26 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | IGSB | MINT |
| 2020 | 5.26% | 1.63% |
| 2019 | 7.01% | 3.3% |
| 2018 | 1.34% | 1.72% |
| 2017 | 1.41% | 1.9% |
| 2016 | 1.77% | 1.99% |
| 2015 | 0.7% | 0.52% |
| 2014 | 0.74% | 0.53% |
| 2013 | 1.03% | 0.72% |
| 2012 | 3.28% | 2.48% |
| 2011 | 1.34% | 0.42% |
| 2010 | 3.69% | 1.72% |
IGSB had its best year in 2019 with an annual return of 7.01%. IGSB’s worst year over the past decade yielded 0.7% and occurred in 2015. In most years the iShares 1-5 Year Investment Grade Corporate Bond ETF provided moderate returns such as in 2011, 2017, and 2016 where annual returns amounted to 1.34%, 1.41%, and 1.77% 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 |
| IGSB | $10,000 | $12,637 | 2.51% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in IGSB would have resulted in a final balance of $12,637. This is a profit of $2,637 over 10 years and amounts to a compound annual growth rate (CAGR) of 2.51%.
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%.
IGSB’s CAGR is 0.99 percentage points higher than that of MINT and as a result, would have yielded $1,013 more on a $10,000 investment. Thus, IGSB outperformed MINT by 0.99% annually.
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