IWS vs. MINT: What’s The Difference?

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

The expense ratio of IWS is 0.13 percentage points lower than MINT’s (0.23% vs. 0.36%). IWS also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, IWS has provided higher returns than MINT over the past 10 years.

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

Summary

IWS MINT
Name iShares Russell Mid-Cap Value ETF PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Mid-Cap Value Ultrashort Bond
Issuer iShares PIMCO
AUM 14.24B 14.02B
Avg. Return 12.35% 1.52%
Div. Yield 1.34% 0.56%
Expense Ratio 0.23% 0.36%

The iShares Russell Mid-Cap Value ETF (IWS) is a Mid-Cap Value fund that is issued by iShares. It currently has 14.24B total assets under management and has yielded an average annual return of 12.35% over the past 10 years. The fund has a dividend yield of 1.34% with an expense ratio of 0.23%.

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%.

IWS’s dividend yield is 0.78% higher than that of MINT (1.34% vs. 0.56%). Also, IWS yielded on average 10.83% more per year over the past decade (12.35% vs. 1.52%). The expense ratio of IWS is 0.13 percentage points lower than MINT’s (0.23% vs. 0.36%).

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Fund Composition

Holdings

IWS - Holdings

IWS Holdings Weight
Twitter Inc 0.69%
Marvell Technology Inc 0.69%
IHS Markit Ltd 0.62%
Prudential Financial Inc 0.56%
Otis Worldwide Corp Ordinary Shares 0.54%
International Flavors & Fragrances Inc 0.53%
Xcel Energy Inc 0.52%
Motorola Solutions Inc 0.52%
Aptiv PLC 0.52%
Aflac Inc 0.52%

IWS’s Top Holdings are Twitter Inc, Marvell Technology Inc, IHS Markit Ltd, Prudential Financial Inc, and Otis Worldwide Corp Ordinary Shares at 0.69%, 0.69%, 0.62%, 0.56%, and 0.54%.

International Flavors & Fragrances Inc (0.53%), Xcel Energy Inc (0.52%), and Motorola Solutions Inc (0.52%) have a slightly smaller but still significant weight. Aptiv PLC and Aflac Inc are also represented in the IWS’s holdings at 0.52% and 0.52%.

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.

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Risk Analysis

IWS MINT
Mean Return 1.06 0.12
R-squared 87.04 4.7
Std. Deviation 16.03 1.08
Alpha -4.11 0.62
Beta 1.1 0.08
Sharpe Ratio 0.75 0.78
Treynor Ratio 10.3 10.8

The iShares Russell Mid-Cap Value ETF (IWS) has a Sharpe Ratio of 0.75 with a Treynor Ratio of 10.3 and a Beta of 1.1. Its Mean Return is 1.06 while IWS’s Standard Deviation is 16.03. Furthermore, the fund has a Alpha of -4.11 and a R-squared of 87.04.

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

IWS’s Mean Return is 0.94 points higher than that of MINT and its R-squared is 82.34 points higher. With a Standard Deviation of 16.03, IWS is slightly more volatile than MINT. The Alpha and Beta of IWS are 4.73 points lower and 1.02 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

IWS vs. MINT - Annual Returns

Year IWS MINT
2020 4.76% 1.63%
2019 26.78% 3.3%
2018 -12.36% 1.72%
2017 13.1% 1.9%
2016 19.69% 1.99%
2015 -4.93% 0.52%
2014 14.49% 0.53%
2013 33.11% 0.72%
2012 18.27% 2.48%
2011 -1.55% 0.42%
2010 24.46% 1.72%

IWS had its best year in 2013 with an annual return of 33.11%. IWS’s worst year over the past decade yielded -12.36% and occurred in 2018. In most years the iShares Russell Mid-Cap Value ETF provided moderate returns such as in 2017, 2014, and 2012 where annual returns amounted to 13.1%, 14.49%, and 18.27% 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

IWS vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWS $10,000 $26,581 12.35%
MINT $10,000 $11,624 1.52%

A $10,000 investment in IWS would have resulted in a final balance of $26,581. This is a profit of $16,581 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.35%.

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%.

IWS’s CAGR is 10.83 percentage points higher than that of MINT and as a result, would have yielded $14,957 more on a $10,000 investment. Thus, IWS outperformed MINT by 10.83% annually.


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