The iShares S&P 500 Value ETF (IVE) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IVE is a iShares Large Value fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IVE and MINT? And which fund is better?
The expense ratio of IVE is 0.18 percentage points lower than MINT’s (0.18% vs. 0.36%). IVE also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, IVE has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare IVE vs. MINT. We’ll look at annual returns and fund composition, as well as at their portfolio growth and risk metrics. Moreover, I’ll also discuss IVE’s and MINT’s holdings, industry exposure, and performance and examine how these affect their overall returns.
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Summary
| IVE | MINT | |
| Name | iShares S&P 500 Value ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Large Value | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 22.4B | 14.02B |
| Avg. Return | 11.68% | 1.52% |
| Div. Yield | 1.88% | 0.56% |
| Expense Ratio | 0.18% | 0.36% |
The iShares S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.
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%.
IVE’s dividend yield is 1.32% higher than that of MINT (1.88% vs. 0.56%). Also, IVE yielded on average 10.16% more per year over the past decade (11.68% vs. 1.52%). The expense ratio of IVE is 0.18 percentage points lower than MINT’s (0.18% vs. 0.36%).
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Fund Composition
Holdings
| IVE Holdings | Weight |
| Berkshire Hathaway Inc Class B | 3.05% |
| JPMorgan Chase & Co | 2.65% |
| The Walt Disney Co | 1.85% |
| Bank of America Corp | 1.67% |
| Johnson & Johnson | 1.57% |
| Exxon Mobil Corp | 1.41% |
| Pfizer Inc | 1.38% |
| Cisco Systems Inc | 1.35% |
| Verizon Communications Inc | 1.33% |
| Intel Corp | 1.25% |
IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.
Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.
| 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
| IVE | MINT | |
| Mean Return | 1.05 | 0.12 |
| R-squared | 92.08 | 4.7 |
| Std. Deviation | 14.3 | 1.08 |
| Alpha | -2.9 | 0.62 |
| Beta | 1.01 | 0.08 |
| Sharpe Ratio | 0.83 | 0.78 |
| Treynor Ratio | 11.41 | 10.8 |
The iShares S&P 500 Value ETF (IVE) has a Mean Return of 1.05 with a R-squared of 92.08 and a Beta of 1.01. Its Sharpe Ratio is 0.83 while IVE’s Standard Deviation is 14.3. Furthermore, the fund has a Alpha of -2.9 and a Treynor Ratio of 11.41.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Standard Deviation of 1.08 with a Beta of 0.08 and a Treynor Ratio of 10.8. Its Mean Return is 0.12 while MINT’s Sharpe Ratio is 0.78. Furthermore, the fund has a Alpha of 0.62 and a R-squared of 4.7.
IVE’s Mean Return is 0.93 points higher than that of MINT and its R-squared is 87.38 points higher. With a Standard Deviation of 14.3, IVE is slightly more volatile than MINT. The Alpha and Beta of IVE are 3.52 points lower and 0.93 points higher than MINT’s Alpha and Beta.
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Performance
Annual Returns
| Year | IVE | MINT |
| 2020 | 1.24% | 1.63% |
| 2019 | 31.71% | 3.3% |
| 2018 | -9.09% | 1.72% |
| 2017 | 15.19% | 1.9% |
| 2016 | 17.17% | 1.99% |
| 2015 | -3.24% | 0.52% |
| 2014 | 12.14% | 0.53% |
| 2013 | 31.69% | 0.72% |
| 2012 | 17.45% | 2.48% |
| 2011 | -0.63% | 0.42% |
| 2010 | 14.9% | 1.72% |
IVE had its best year in 2019 with an annual return of 31.71%. IVE’s worst year over the past decade yielded -9.09% and occurred in 2018. In most years the iShares S&P 500 Value ETF provided moderate returns such as in 2014, 2010, and 2017 where annual returns amounted to 12.14%, 14.9%, and 15.19% 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 |
| IVE | $10,000 | $27,285 | 11.68% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in IVE would have resulted in a final balance of $27,285. This is a profit of $17,285 over 10 years and amounts to a compound annual growth rate (CAGR) of 11.68%.
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%.
IVE’s CAGR is 10.16 percentage points higher than that of MINT and as a result, would have yielded $15,661 more on a $10,000 investment. Thus, IVE outperformed MINT by 10.16% annually.
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