IWR vs. MINT: What’s The Difference?

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

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

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

Summary

IWR MINT
Name iShares Russell Mid-Cap ETF PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Mid-Cap Blend Ultrashort Bond
Issuer iShares PIMCO
AUM 29.84B 14.02B
Avg. Return 14.15% 1.52%
Div. Yield 0.99% 0.56%
Expense Ratio 0.19% 0.36%

The iShares Russell Mid-Cap ETF (IWR) is a Mid-Cap Blend fund that is issued by iShares. It currently has 29.84B total assets under management and has yielded an average annual return of 14.15% over the past 10 years. The fund has a dividend yield of 0.99% 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%.

IWR’s dividend yield is 0.43% higher than that of MINT (0.99% vs. 0.56%). Also, IWR yielded on average 12.63% more per year over the past decade (14.15% vs. 1.52%). The expense ratio of IWR is 0.17 percentage points lower than MINT’s (0.19% vs. 0.36%).

Fund Composition

Holdings

IWR - Holdings

IWR Holdings Weight
IDEXX Laboratories Inc 0.51%
DocuSign Inc 0.51%
Twitter Inc 0.48%
Chipotle Mexican Grill Inc 0.47%
Roku Inc Class A 0.44%
Marvell Technology Inc 0.44%
DexCom Inc 0.44%
Trane Technologies PLC 0.43%
MSCI Inc 0.43%
Carrier Global Corp Ordinary Shares 0.43%

IWR’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Twitter Inc, Chipotle Mexican Grill Inc, and Roku Inc Class A at 0.51%, 0.51%, 0.48%, 0.47%, and 0.44%.

Marvell Technology Inc (0.44%), DexCom Inc (0.44%), and Trane Technologies PLC (0.43%) have a slightly smaller but still significant weight. MSCI Inc and Carrier Global Corp Ordinary Shares are also represented in the IWR’s holdings at 0.43% and 0.43%.

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

IWR MINT
Mean Return 1.17 0.12
R-squared 91.52 4.7
Std. Deviation 15.66 1.08
Alpha -2.8 0.62
Beta 1.11 0.08
Sharpe Ratio 0.86 0.78
Treynor Ratio 11.72 10.8

The iShares Russell Mid-Cap ETF (IWR) has a R-squared of 91.52 with a Standard Deviation of 15.66 and a Treynor Ratio of 11.72. Its Sharpe Ratio is 0.86 while IWR’s Mean Return is 1.17. Furthermore, the fund has a Beta of 1.11 and a Alpha of -2.8.

The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Beta of 0.08 with a Standard Deviation of 1.08 and a Sharpe Ratio of 0.78. Its Alpha is 0.62 while MINT’s Treynor Ratio is 10.8. Furthermore, the fund has a Mean Return of 0.12 and a R-squared of 4.7.

IWR’s Mean Return is 1.05 points higher than that of MINT and its R-squared is 86.82 points higher. With a Standard Deviation of 15.66, IWR is slightly more volatile than MINT. The Alpha and Beta of IWR are 3.42 points lower and 1.03 points higher than MINT’s Alpha and Beta.

Performance

Annual Returns

IWR vs. MINT - Annual Returns

Year IWR MINT
2020 16.91% 1.63%
2019 30.31% 3.3%
2018 -9.13% 1.72%
2017 18.32% 1.9%
2016 13.58% 1.99%
2015 -2.57% 0.52%
2014 13.03% 0.53%
2013 34.5% 0.72%
2012 17.13% 2.48%
2011 -1.67% 0.42%
2010 25.25% 1.72%

IWR had its best year in 2013 with an annual return of 34.5%. IWR’s worst year over the past decade yielded -9.13% and occurred in 2018. In most years the iShares Russell Mid-Cap ETF provided moderate returns such as in 2016, 2020, and 2012 where annual returns amounted to 13.58%, 16.91%, and 17.13% 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

IWR vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWR $10,000 $31,737 14.15%
MINT $10,000 $11,624 1.52%

A $10,000 investment in IWR would have resulted in a final balance of $31,737. This is a profit of $21,737 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.15%.

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%.

IWR’s CAGR is 12.63 percentage points higher than that of MINT and as a result, would have yielded $20,113 more on a $10,000 investment. Thus, IWR outperformed MINT by 12.63% annually.


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