IWB vs. MINT: What’s The Difference?

The iShares Russell 1000 ETF (IWB) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IWB is a iShares Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IWB and MINT? And which fund is better?

The expense ratio of IWB is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%). IWB also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, IWB has provided higher returns than MINT over the past ten years.

In this article, we’ll compare IWB vs. MINT. We’ll look at holdings and risk metrics, as well as at their industry exposure and performance. Moreover, I’ll also discuss IWB’s and MINT’s portfolio growth, annual returns, and fund composition and examine how these affect their overall returns.

Summary

IWB MINT
Name iShares Russell 1000 ETF PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Blend Ultrashort Bond
Issuer iShares PIMCO
AUM 30.54B 14.02B
Avg. Return 14.64% 1.52%
Div. Yield 1.14% 0.56%
Expense Ratio 0.15% 0.36%

The iShares Russell 1000 ETF (IWB) is a Large Blend fund that is issued by iShares. It currently has 30.54B total assets under management and has yielded an average annual return of 14.64% over the past 10 years. The fund has a dividend yield of 1.14% with an expense ratio of 0.15%.

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%.

IWB’s dividend yield is 0.58% higher than that of MINT (1.14% vs. 0.56%). Also, IWB yielded on average 13.11% more per year over the past decade (14.64% vs. 1.52%). The expense ratio of IWB is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%).

Fund Composition

Holdings

IWB - Holdings

IWB Holdings Weight
Apple Inc 5.45%
Microsoft Corp 5.11%
Amazon.com Inc 3.43%
Facebook Inc Class A 2.03%
Alphabet Inc Class A 1.93%
Alphabet Inc Class C 1.82%
Tesla Inc 1.27%
Berkshire Hathaway Inc Class B 1.24%
NVIDIA Corp 1.11%
JPMorgan Chase & Co 1.09%

IWB’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.45%, 5.11%, 3.43%, 2.03%, and 1.93%.

Alphabet Inc Class C (1.82%), Tesla Inc (1.27%), and Berkshire Hathaway Inc Class B (1.24%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the IWB’s holdings at 1.11% and 1.09%.

MINT - Holdings

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

IWB MINT
Mean Return 1.27 0.12
R-squared 99.73 4.7
Std. Deviation 13.87 1.08
Alpha -0.38 0.62
Beta 1.02 0.08
Sharpe Ratio 1.05 0.78
Treynor Ratio 14.31 10.8

The iShares Russell 1000 ETF (IWB) has a Alpha of -0.38 with a Beta of 1.02 and a Sharpe Ratio of 1.05. Its Treynor Ratio is 14.31 while IWB’s Mean Return is 1.27. Furthermore, the fund has a Standard Deviation of 13.87 and a R-squared of 99.73.

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 R-squared of 4.7. Its Mean Return is 0.12 while MINT’s Alpha is 0.62. Furthermore, the fund has a Treynor Ratio of 10.8 and a Sharpe Ratio of 0.78.

IWB’s Mean Return is 1.15 points higher than that of MINT and its R-squared is 95.03 points higher. With a Standard Deviation of 13.87, IWB is slightly more volatile than MINT. The Alpha and Beta of IWB are 1.00 points lower and 0.94 points higher than MINT’s Alpha and Beta.

Performance

Annual Returns

IWB vs. MINT - Annual Returns

Year IWB MINT
2020 20.8% 1.63%
2019 31.26% 3.3%
2018 -4.91% 1.72%
2017 21.53% 1.9%
2016 11.91% 1.99%
2015 0.82% 0.52%
2014 13.08% 0.53%
2013 32.93% 0.72%
2012 16.27% 2.48%
2011 1.36% 0.42%
2010 15.94% 1.72%

IWB had its best year in 2013 with an annual return of 32.93%. IWB’s worst year over the past decade yielded -4.91% and occurred in 2018. In most years the iShares Russell 1000 ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.08%, 15.94%, and 16.27% 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

IWB vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWB $10,000 $36,624 14.64%
MINT $10,000 $11,624 1.52%

A $10,000 investment in IWB would have resulted in a final balance of $36,624. This is a profit of $26,624 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.64%.

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%.

IWB’s CAGR is 13.11 percentage points higher than that of MINT and as a result, would have yielded $25,000 more on a $10,000 investment. Thus, IWB outperformed MINT by 13.11% annually.


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