The iShares Core S&P Small-Cap ETF (IJR) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IJR is a iShares Small Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IJR and MINT? And which fund is better?
The expense ratio of IJR is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%). IJR also has a high exposure to the industrials sector while MINT is mostly comprised of Others bonds. Overall, IJR has provided higher returns than MINT over the past ten years.
In this article, we’ll compare IJR vs. MINT. We’ll look at fund composition and portfolio growth, as well as at their risk metrics and performance. Moreover, I’ll also discuss IJR’s and MINT’s holdings, annual returns, and industry exposure and examine how these affect their overall returns.
Summary
| IJR | MINT | |
| Name | iShares Core S&P Small-Cap ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Small Blend | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 68.64B | 14.02B |
| Avg. Return | 13.97% | 1.52% |
| Div. Yield | 0.96% | 0.56% |
| Expense Ratio | 0.06% | 0.36% |
The iShares Core S&P Small-Cap ETF (IJR) is a Small Blend fund that is issued by iShares. It currently has 68.64B total assets under management and has yielded an average annual return of 13.97% over the past 10 years. The fund has a dividend yield of 0.96% 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%.
IJR’s dividend yield is 0.40% higher than that of MINT (0.96% vs. 0.56%). Also, IJR yielded on average 12.45% more per year over the past decade (13.97% vs. 1.52%). The expense ratio of IJR is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%).
Fund Composition
Holdings
| IJR Holdings | Weight |
| BlackRock Cash Funds Treasury SL Agency | 1.08% |
| GameStop Corp Class A | 0.86% |
| Omnicell Inc | 0.61% |
| Stamps.com Inc | 0.58% |
| Saia Inc | 0.57% |
| Power Integrations Inc | 0.57% |
| Exponent Inc | 0.54% |
| NeoGenomics Inc | 0.53% |
| Chart Industries Inc | 0.53% |
| Macy’s Inc | 0.51% |
IJR’s Top Holdings are BlackRock Cash Funds Treasury SL Agency, GameStop Corp Class A, Omnicell Inc, Stamps.com Inc, and Saia Inc at 1.08%, 0.86%, 0.61%, 0.58%, and 0.57%.
Power Integrations Inc (0.57%), Exponent Inc (0.54%), and NeoGenomics Inc (0.53%) have a slightly smaller but still significant weight. Chart Industries Inc and Macy’s Inc are also represented in the IJR’s holdings at 0.53% and 0.51%.
| 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
| IJR | MINT | |
| Mean Return | 1.21 | 0.12 |
| R-squared | 76.03 | 4.7 |
| Std. Deviation | 18.68 | 1.08 |
| Alpha | -3.7 | 0.62 |
| Beta | 1.2 | 0.08 |
| Sharpe Ratio | 0.74 | 0.78 |
| Treynor Ratio | 10.77 | 10.8 |
The iShares Core S&P Small-Cap ETF (IJR) has a Sharpe Ratio of 0.74 with a Mean Return of 1.21 and a R-squared of 76.03. Its Alpha is -3.7 while IJR’s Standard Deviation is 18.68. Furthermore, the fund has a Beta of 1.2 and a Treynor Ratio of 10.77.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a R-squared of 4.7 with a Treynor Ratio of 10.8 and a Beta of 0.08. Its Alpha is 0.62 while MINT’s Sharpe Ratio is 0.78. Furthermore, the fund has a Standard Deviation of 1.08 and a Mean Return of 0.12.
IJR’s Mean Return is 1.09 points higher than that of MINT and its R-squared is 71.33 points higher. With a Standard Deviation of 18.68, IJR is slightly more volatile than MINT. The Alpha and Beta of IJR are 4.32 points lower and 1.12 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | IJR | MINT |
| 2020 | 11.24% | 1.63% |
| 2019 | 22.79% | 3.3% |
| 2018 | -8.43% | 1.72% |
| 2017 | 13.2% | 1.9% |
| 2016 | 26.49% | 1.99% |
| 2015 | -2.0% | 0.52% |
| 2014 | 5.67% | 0.53% |
| 2013 | 41.36% | 0.72% |
| 2012 | 16.28% | 2.48% |
| 2011 | 0.9% | 0.42% |
| 2010 | 26.14% | 1.72% |
IJR had its best year in 2013 with an annual return of 41.36%. IJR’s worst year over the past decade yielded -8.43% and occurred in 2018. In most years the iShares Core S&P Small-Cap ETF provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 11.24%, 13.2%, and 16.28% 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 |
| IJR | $10,000 | $30,759 | 13.97% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in IJR would have resulted in a final balance of $30,759. This is a profit of $20,759 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.97%.
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%.
IJR’s CAGR is 12.45 percentage points higher than that of MINT and as a result, would have yielded $19,135 more on a $10,000 investment. Thus, IJR outperformed MINT by 12.45% annually.
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