The iShares Russell 1000 Value ETF (IWD) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IWD is a iShares Large Value fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IWD and MINT? And which fund is better?
The expense ratio of IWD is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%). IWD also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, IWD has provided higher returns than MINT over the past ten years.
In this article, we’ll compare IWD vs. MINT. We’ll look at holdings and industry exposure, as well as at their fund composition and risk metrics. Moreover, I’ll also discuss IWD’s and MINT’s portfolio growth, annual returns, and performance and examine how these affect their overall returns.
Summary
| IWD | MINT | |
| Name | iShares Russell 1000 Value ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Large Value | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 54.1B | 14.02B |
| Avg. Return | 11.40% | 1.52% |
| Div. Yield | 1.57% | 0.56% |
| Expense Ratio | 0.19% | 0.36% |
The iShares Russell 1000 Value ETF (IWD) is a Large Value fund that is issued by iShares. It currently has 54.1B total assets under management and has yielded an average annual return of 11.40% over the past 10 years. The fund has a dividend yield of 1.57% with an expense ratio of 0.19%.
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%.
IWD’s dividend yield is 1.01% higher than that of MINT (1.57% vs. 0.56%). Also, IWD yielded on average 9.88% more per year over the past decade (11.40% vs. 1.52%). The expense ratio of IWD is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%).
Fund Composition
Holdings
| IWD Holdings | Weight |
| Berkshire Hathaway Inc Class B | 2.58% |
| JPMorgan Chase & Co | 2.25% |
| Johnson & Johnson | 2.24% |
| UnitedHealth Group Inc | 1.78% |
| Procter & Gamble Co | 1.71% |
| The Walt Disney Co | 1.5% |
| Bank of America Corp | 1.43% |
| Comcast Corp Class A | 1.33% |
| Exxon Mobil Corp | 1.2% |
| Pfizer Inc | 1.18% |
IWD’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.58%, 2.25%, 2.24%, 1.78%, and 1.71%.
The Walt Disney Co (1.5%), Bank of America Corp (1.43%), and Comcast Corp Class A (1.33%) have a slightly smaller but still significant weight. Exxon Mobil Corp and Pfizer Inc are also represented in the IWD’s holdings at 1.2% and 1.18%.
| 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
| IWD | MINT | |
| Mean Return | 1.03 | 0.12 |
| R-squared | 92.38 | 4.7 |
| Std. Deviation | 14.35 | 1.08 |
| Alpha | -3.23 | 0.62 |
| Beta | 1.02 | 0.08 |
| Sharpe Ratio | 0.81 | 0.78 |
| Treynor Ratio | 11.06 | 10.8 |
The iShares Russell 1000 Value ETF (IWD) has a R-squared of 92.38 with a Beta of 1.02 and a Treynor Ratio of 11.06. Its Sharpe Ratio is 0.81 while IWD’s Mean Return is 1.03. Furthermore, the fund has a Standard Deviation of 14.35 and a Alpha of -3.23.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Beta of 0.08 with a Mean Return of 0.12 and a R-squared of 4.7. Its Standard Deviation is 1.08 while MINT’s Alpha is 0.62. Furthermore, the fund has a Sharpe Ratio of 0.78 and a Treynor Ratio of 10.8.
IWD’s Mean Return is 0.91 points higher than that of MINT and its R-squared is 87.68 points higher. With a Standard Deviation of 14.35, IWD is slightly more volatile than MINT. The Alpha and Beta of IWD are 3.85 points lower and 0.94 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | IWD | MINT |
| 2020 | 2.67% | 1.63% |
| 2019 | 26.34% | 3.3% |
| 2018 | -8.4% | 1.72% |
| 2017 | 13.47% | 1.9% |
| 2016 | 17.09% | 1.99% |
| 2015 | -3.95% | 0.52% |
| 2014 | 13.21% | 0.53% |
| 2013 | 32.18% | 0.72% |
| 2012 | 17.28% | 2.48% |
| 2011 | 0.21% | 0.42% |
| 2010 | 15.3% | 1.72% |
IWD had its best year in 2013 with an annual return of 32.18%. IWD’s worst year over the past decade yielded -8.4% and occurred in 2018. In most years the iShares Russell 1000 Value ETF provided moderate returns such as in 2014, 2017, and 2010 where annual returns amounted to 13.21%, 13.47%, and 15.3% 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 |
| IWD | $10,000 | $26,666 | 11.40% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in IWD would have resulted in a final balance of $26,666. This is a profit of $16,666 over 10 years and amounts to a compound annual growth rate (CAGR) of 11.40%.
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%.
IWD’s CAGR is 9.88 percentage points higher than that of MINT and as a result, would have yielded $15,042 more on a $10,000 investment. Thus, IWD outperformed MINT by 9.88% annually.
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