The iShares Russell 1000 Growth ETF (IWF) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IWF and MINT? And which fund is better?
The expense ratio of IWF is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%). IWF also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, IWF has provided higher returns than MINT over the past ten years.
In this article, we’ll compare IWF vs. MINT. We’ll look at holdings and risk metrics, as well as at their fund composition and industry exposure. Moreover, I’ll also discuss IWF’s and MINT’s annual returns, portfolio growth, and performance and examine how these affect their overall returns.
|Name||iShares Russell 1000 Growth ETF||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Large Growth||Ultrashort Bond|
The iShares Russell 1000 Growth ETF (IWF) is a Large Growth fund that is issued by iShares. It currently has 72.16B total assets under management and has yielded an average annual return of 17.72% over the past 10 years. The fund has a dividend yield of 0.52% 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%.
IWF’s dividend yield is 0.04% lower than that of MINT (0.52% vs. 0.56%). Also, IWF yielded on average 16.20% more per year over the past decade (17.72% vs. 1.52%). The expense ratio of IWF is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%).
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|Facebook Inc Class A||3.91%|
|Alphabet Inc Class A||3.2%|
|Alphabet Inc Class C||3.03%|
|Visa Inc Class A||1.91%|
|The Home Depot Inc||1.62%|
IWF’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 10.51%, 9.85%, 6.63%, 3.91%, and 3.2%.
Alphabet Inc Class C (3.03%), Tesla Inc (2.45%), and NVIDIA Corp (2.14%) have a slightly smaller but still significant weight. Visa Inc Class A and The Home Depot Inc are also represented in the IWF’s holdings at 1.91% and 1.62%.
|MINT Bond Sectors||Weight|
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.
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The iShares Russell 1000 Growth ETF (IWF) has a Standard Deviation of 14.42 with a Alpha of 2.16 and a Beta of 1.03. Its Mean Return is 1.48 while IWF’s Sharpe Ratio is 1.19. Furthermore, the fund has a R-squared of 92.93 and a Treynor Ratio of 17.1.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Alpha of 0.62 with a Beta of 0.08 and a Treynor Ratio of 10.8. Its Sharpe Ratio is 0.78 while MINT’s R-squared is 4.7. Furthermore, the fund has a Mean Return of 0.12 and a Standard Deviation of 1.08.
IWF’s Mean Return is 1.36 points higher than that of MINT and its R-squared is 88.23 points higher. With a Standard Deviation of 14.42, IWF is slightly more volatile than MINT. The Alpha and Beta of IWF are 1.54 points higher and 0.95 points higher than MINT’s Alpha and Beta.
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IWF had its best year in 2020 with an annual return of 38.21%. IWF’s worst year over the past decade yielded -1.68% and occurred in 2018. In most years the iShares Russell 1000 Growth ETF provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 12.84%, 15.03%, and 16.47% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IWF would have resulted in a final balance of $48,012. This is a profit of $38,012 over 10 years and amounts to a compound annual growth rate (CAGR) of 17.72%.
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%.
IWF’s CAGR is 16.20 percentage points higher than that of MINT and as a result, would have yielded $36,388 more on a $10,000 investment. Thus, IWF outperformed MINT by 16.20% annually.
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