The iShares MSCI USA Momentum Factor ETF (MTUM) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. MTUM is a iShares Large Growth fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between MTUM and MINT? And which fund is better?
The expense ratio of MTUM is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%). MTUM also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, MTUM has provided higher returns than MINT over the past 7 years.
In this article, we’ll compare MTUM vs. MINT. We’ll look at risk metrics and industry exposure, as well as at their performance and portfolio growth. Moreover, I’ll also discuss MTUM’s and MINT’s fund composition, holdings, and annual returns and examine how these affect their overall returns.
Summary
| MTUM | MINT | |
| Name | iShares MSCI USA Momentum Factor ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Large Growth | Ultrashort Bond |
| Issuer | iShares | PIMCO |
| AUM | 14.53B | 14.02B |
| Avg. Return | 17.37% | 1.52% |
| Div. Yield | 0.44% | 0.56% |
| Expense Ratio | 0.15% | 0.36% |
The iShares MSCI USA Momentum Factor ETF (MTUM) is a Large Growth fund that is issued by iShares. It currently has 14.53B total assets under management and has yielded an average annual return of 17.37% over the past 10 years. The fund has a dividend yield of 0.44% with an expense ratio of 0.15%.
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%.
MTUM’s dividend yield is 0.12% lower than that of MINT (0.44% vs. 0.56%). Also, MTUM yielded on average 15.85% more per year over the past decade (17.37% vs. 1.52%). The expense ratio of MTUM is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%).
Fund Composition
Holdings
| MTUM Holdings | Weight |
| Tesla Inc | 5.63% |
| The Walt Disney Co | 4.39% |
| JPMorgan Chase & Co | 4.35% |
| Berkshire Hathaway Inc Class B | 4.34% |
| Bank of America Corp | 3.81% |
| PayPal Holdings Inc | 3.76% |
| Wells Fargo & Co | 3.05% |
| Applied Materials Inc | 3.05% |
| Moderna Inc | 2.89% |
| Alphabet Inc Class C | 2.84% |
MTUM’s Top Holdings are Tesla Inc, The Walt Disney Co, JPMorgan Chase & Co, Berkshire Hathaway Inc Class B, and Bank of America Corp at 5.63%, 4.39%, 4.35%, 4.34%, and 3.81%.
PayPal Holdings Inc (3.76%), Wells Fargo & Co (3.05%), and Applied Materials Inc (3.05%) have a slightly smaller but still significant weight. Moderna Inc and Alphabet Inc Class C are also represented in the MTUM’s holdings at 2.89% and 2.84%.
| 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
| MTUM | MINT | |
| Mean Return | 0 | 0.12 |
| R-squared | 0 | 4.7 |
| Std. Deviation | 0 | 1.08 |
| Alpha | 0 | 0.62 |
| Beta | 0 | 0.08 |
| Sharpe Ratio | 0 | 0.78 |
| Treynor Ratio | 0 | 10.8 |
The iShares MSCI USA Momentum Factor ETF (MTUM) has a Alpha of 0 with a Beta of 0 and a Treynor Ratio of 0. Its Standard Deviation is 0 while MTUM’s Mean Return is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a R-squared of 0.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Mean Return of 0.12 with a Standard Deviation of 1.08 and a R-squared of 4.7. Its Sharpe Ratio is 0.78 while MINT’s Beta is 0.08. Furthermore, the fund has a Alpha of 0.62 and a Treynor Ratio of 10.8.
MTUM’s Mean Return is 0.12 points lower than that of MINT and its R-squared is 4.70 points lower. With a Standard Deviation of 0, MTUM is slightly less volatile than MINT. The Alpha and Beta of MTUM are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | MTUM | MINT |
| 2020 | 29.69% | 1.63% |
| 2019 | 27.57% | 3.3% |
| 2018 | -1.77% | 1.72% |
| 2017 | 37.6% | 1.9% |
| 2016 | 4.89% | 1.99% |
| 2015 | 9.12% | 0.52% |
| 2014 | 14.48% | 0.53% |
| 2013 | 0.0% | 0.72% |
| 2012 | 0.0% | 2.48% |
| 2011 | 0.0% | 0.42% |
| 2010 | 0.0% | 1.72% |
MTUM had its best year in 2017 with an annual return of 37.6%. MTUM’s worst year over the past decade yielded -1.77% and occurred in 2018. In most years the iShares MSCI USA Momentum Factor ETF provided moderate returns such as in 2010, 2016, and 2015 where annual returns amounted to 0.0%, 4.89%, and 9.12% 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 |
| MTUM | $10,000 | $29,301 | 17.37% |
| MINT | $10,000 | $11,215 | 1.52% |
A $10,000 investment in MTUM would have resulted in a final balance of $29,301. This is a profit of $19,301 over 7 years and amounts to a compound annual growth rate (CAGR) of 17.37%.
With a $10,000 investment in MINT, the end total would have been $11,215. This equates to a $1,215 profit over 7 years and a compound annual growth rate (CAGR) of 1.52%.
MTUM’s CAGR is 15.85 percentage points higher than that of MINT and as a result, would have yielded $18,086 more on a $10,000 investment. Thus, MTUM outperformed MINT by 15.85% annually.
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