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IWM vs. MINT: What’s The Difference?

The iShares Russell 2000 ETF (IWM) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. IWM is a iShares Small Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between IWM and MINT? And which fund is better?

The expense ratio of IWM is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%). IWM also has a high exposure to the healthcare sector while MINT is mostly comprised of Others bonds. Overall, IWM has provided higher returns than MINT over the past ten years.

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

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Summary

IWMMINT
NameiShares Russell 2000 ETFPIMCO Enhanced Short Maturity Active Exchange-Traded Fund
CategorySmall BlendUltrashort Bond
IssueriSharesPIMCO
AUM66.48B14.02B
Avg. Return13.52%1.52%
Div. Yield0.86%0.56%
Expense Ratio0.19%0.36%

The iShares Russell 2000 ETF (IWM) is a Small Blend fund that is issued by iShares. It currently has 66.48B total assets under management and has yielded an average annual return of 13.52% over the past 10 years. The fund has a dividend yield of 0.86% 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%.

IWM’s dividend yield is 0.30% higher than that of MINT (0.86% vs. 0.56%). Also, IWM yielded on average 12.00% more per year over the past decade (13.52% vs. 1.52%). The expense ratio of IWM is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%).

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Fund Composition

Holdings

IWM - Holdings

IWM HoldingsWeight
AMC Entertainment Holdings Inc Class A0.52%
Intellia Therapeutics Inc0.33%
Crocs Inc0.3%
BlackRock Cash Funds Treasury SL Agency0.29%
Tenet Healthcare Corp0.26%
Lattice Semiconductor Corp0.26%
Tetra Tech Inc0.25%
II-VI Inc0.25%
EastGroup Properties Inc0.24%
Arrowhead Pharmaceuticals Inc0.24%

IWM’s Top Holdings are AMC Entertainment Holdings Inc Class A, Intellia Therapeutics Inc, Crocs Inc, BlackRock Cash Funds Treasury SL Agency, and Tenet Healthcare Corp at 0.52%, 0.33%, 0.3%, 0.29%, and 0.26%.

Lattice Semiconductor Corp (0.26%), Tetra Tech Inc (0.25%), and II-VI Inc (0.25%) have a slightly smaller but still significant weight. EastGroup Properties Inc and Arrowhead Pharmaceuticals Inc are also represented in the IWM’s holdings at 0.24% and 0.24%.

MINT - Holdings

MINT Bond SectorsWeight
Others0.0%
Below B0.0%
B0.0%
BB0.0%
BBB0.0%
A0.0%
AA0.0%
AAA0.0%
US Government0.0%

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.

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Risk Analysis

IWMMINT
Mean Return1.120.12
R-squared77.734.7
Std. Deviation18.871.08
Alpha-5.120.62
Beta1.230.08
Sharpe Ratio0.680.78
Treynor Ratio9.5610.8

The iShares Russell 2000 ETF (IWM) has a Sharpe Ratio of 0.68 with a Mean Return of 1.12 and a Alpha of -5.12. Its Beta is 1.23 while IWM’s Standard Deviation is 18.87. Furthermore, the fund has a R-squared of 77.73 and a Treynor Ratio of 9.56.

The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Alpha of 0.62 with a Treynor Ratio of 10.8 and a R-squared of 4.7. Its Beta is 0.08 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.

IWM’s Mean Return is 1.00 points higher than that of MINT and its R-squared is 73.03 points higher. With a Standard Deviation of 18.87, IWM is slightly more volatile than MINT. The Alpha and Beta of IWM are 5.74 points lower and 1.15 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

IWM vs. MINT - Annual Returns

YearIWMMINT
202019.89%1.63%
201925.42%3.3%
2018-11.02%1.72%
201714.66%1.9%
201621.36%1.99%
2015-4.33%0.52%
20144.94%0.53%
201338.85%0.72%
201216.39%2.48%
2011-4.19%0.42%
201026.76%1.72%

IWM had its best year in 2013 with an annual return of 38.85%. IWM’s worst year over the past decade yielded -11.02% and occurred in 2018. In most years the iShares Russell 2000 ETF provided moderate returns such as in 2017, 2012, and 2020 where annual returns amounted to 14.66%, 16.39%, and 19.89% 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

IWM vs. MINT - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IWM$10,000$28,94113.52%
MINT$10,000$11,6241.52%

A $10,000 investment in IWM would have resulted in a final balance of $28,941. This is a profit of $18,941 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.52%.

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%.

IWM’s CAGR is 12.00 percentage points higher than that of MINT and as a result, would have yielded $17,317 more on a $10,000 investment. Thus, IWM outperformed MINT by 12.00% annually.


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