QQQ vs. MINT: What’s The Difference?

The Invesco QQQ Trust (QQQ) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. QQQ is a Invesco Large Growth fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between QQQ and MINT? And which fund is better?

The expense ratio of QQQ is 0.16 percentage points lower than MINT’s (0.2% vs. 0.36%). QQQ also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, QQQ has provided higher returns than MINT over the past ten years.

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

Summary

QQQ MINT
Name Invesco QQQ Trust PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Growth Ultrashort Bond
Issuer Invesco PIMCO
AUM 174.51B 14.02B
Avg. Return 21.27% 1.52%
Div. Yield 0.49% 0.56%
Expense Ratio 0.2% 0.36%

The Invesco QQQ Trust (QQQ) is a Large Growth fund that is issued by Invesco. It currently has 174.51B total assets under management and has yielded an average annual return of 21.27% over the past 10 years. The fund has a dividend yield of 0.49% with an expense ratio of 0.2%.

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%.

QQQ’s dividend yield is 0.07% lower than that of MINT (0.49% vs. 0.56%). Also, QQQ yielded on average 19.75% more per year over the past decade (21.27% vs. 1.52%). The expense ratio of QQQ is 0.16 percentage points lower than MINT’s (0.2% vs. 0.36%).

Fund Composition

Holdings

QQQ - Holdings

QQQ Holdings Weight
Apple Inc 11.0%
Microsoft Corp 9.82%
Amazon.com Inc 8.35%
Facebook Inc Class A 4.01%
Facebook Inc A 4.01%
Alphabet Inc Class C 3.9%
Tesla Inc 3.9%
NVIDIA Corp 3.65%
Alphabet Inc Class A 3.53%
Alphabet Inc A 3.53%

QQQ’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Facebook Inc A at 11.0%, 9.82%, 8.35%, 4.01%, and 4.01%.

Alphabet Inc Class C (3.9%), Tesla Inc (3.9%), and NVIDIA Corp (3.65%) have a slightly smaller but still significant weight. Alphabet Inc Class A and Alphabet Inc A are also represented in the QQQ’s holdings at 3.53% and 3.53%.

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.

Performance

Annual Returns

QQQ vs. MINT - Annual Returns

Year QQQ MINT
2020 48.6% 1.63%
2019 39.12% 3.3%
2018 -0.14% 1.72%
2017 32.7% 1.9%
2016 7.01% 1.99%
2015 9.54% 0.52%
2014 19.12% 0.53%
2013 36.6% 0.72%
2012 18.09% 2.48%
2011 3.44% 0.42%
2010 19.89% 1.72%

QQQ had its best year in 2020 with an annual return of 48.6%. QQQ’s worst year over the past decade yielded -0.14% and occurred in 2018. In most years the Invesco QQQ Trust provided moderate returns such as in 2012, 2014, and 2010 where annual returns amounted to 18.09%, 19.12%, 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

QQQ vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
QQQ $10,000 $63,827 21.27%
MINT $10,000 $11,624 1.52%

A $10,000 investment in QQQ would have resulted in a final balance of $63,827. This is a profit of $53,827 over 10 years and amounts to a compound annual growth rate (CAGR) of 21.27%.

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%.

QQQ’s CAGR is 19.75 percentage points higher than that of MINT and as a result, would have yielded $52,203 more on a $10,000 investment. Thus, QQQ outperformed MINT by 19.75% annually.


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