The iShares MBS ETF (MBB) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. MBB is a iShares Intermediate Government fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between MBB and MINT? And which fund is better?
The expense ratio of MBB is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%). MBB is mostly comprised of AAA bonds and MINT has a high exposure to Others bond. Overall, MBB has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare MBB vs. MINT. We’ll look at performance and portfolio growth, as well as at their risk metrics and holdings. Moreover, I’ll also discuss MBB’s and MINT’s industry exposure, fund composition, and annual returns and examine how these affect their overall returns.
Summary
| MBB | MINT | |
| Name | iShares MBS ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Intermediate Government | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 25.69B | 14.02B |
| Avg. Return | 3.08% | 1.52% |
| Div. Yield | 1.88% | 0.56% |
| Expense Ratio | 0.06% | 0.36% |
The iShares MBS ETF (MBB) is a Intermediate Government fund that is issued by iShares. It currently has 25.69B total assets under management and has yielded an average annual return of 3.08% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.06%.
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%.
MBB’s dividend yield is 1.32% higher than that of MINT (1.88% vs. 0.56%). Also, MBB yielded on average 1.55% more per year over the past decade (3.08% vs. 1.52%). The expense ratio of MBB is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%).
Fund Composition
Holdings
| MBB Bond Sectors | Weight |
| AAA | 99.51% |
| Others | 0.49% |
| Below B | 0.0% |
| B | 0.0% |
| BB | 0.0% |
| BBB | 0.0% |
| A | 0.0% |
| AA | 0.0% |
| US Government | 0.0% |
MBB’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 99.51%, 0.49%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.
| 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
| MBB | MINT | |
| Mean Return | 0.2 | 0.12 |
| R-squared | 74.38 | 4.7 |
| Std. Deviation | 2.12 | 1.08 |
| Alpha | 0.14 | 0.62 |
| Beta | 0.6 | 0.08 |
| Sharpe Ratio | 0.87 | 0.78 |
| Treynor Ratio | 3.02 | 10.8 |
The iShares MBS ETF (MBB) has a Mean Return of 0.2 with a Alpha of 0.14 and a Standard Deviation of 2.12. Its Treynor Ratio is 3.02 while MBB’s R-squared is 74.38. Furthermore, the fund has a Beta of 0.6 and a Sharpe Ratio of 0.87.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a R-squared of 4.7 with a Alpha of 0.62 and a Sharpe Ratio of 0.78. Its Beta is 0.08 while MINT’s Mean Return is 0.12. Furthermore, the fund has a Treynor Ratio of 10.8 and a Standard Deviation of 1.08.
MBB’s Mean Return is 0.08 points higher than that of MINT and its R-squared is 69.68 points higher. With a Standard Deviation of 2.12, MBB is slightly more volatile than MINT. The Alpha and Beta of MBB are 0.48 points lower and 0.52 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | MBB | MINT |
| 2020 | 4.03% | 1.63% |
| 2019 | 6.27% | 3.3% |
| 2018 | 0.81% | 1.72% |
| 2017 | 2.37% | 1.9% |
| 2016 | 1.28% | 1.99% |
| 2015 | 1.28% | 0.52% |
| 2014 | 6.16% | 0.53% |
| 2013 | -1.92% | 0.72% |
| 2012 | 2.23% | 2.48% |
| 2011 | 5.88% | 0.42% |
| 2010 | 5.44% | 1.72% |
MBB had its best year in 2019 with an annual return of 6.27%. MBB’s worst year over the past decade yielded -1.92% and occurred in 2013. In most years the iShares MBS ETF provided moderate returns such as in 2012, 2017, and 2020 where annual returns amounted to 2.23%, 2.37%, and 4.03% 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 |
| MBB | $10,000 | $13,189 | 3.08% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in MBB would have resulted in a final balance of $13,189. This is a profit of $3,189 over 10 years and amounts to a compound annual growth rate (CAGR) of 3.08%.
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%.
MBB’s CAGR is 1.55 percentage points higher than that of MINT and as a result, would have yielded $1,565 more on a $10,000 investment. Thus, MBB outperformed MINT by 1.55% annually.
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