RSP vs. MINT: What’s The Difference?

The Invesco S&P 500 Equal Weight ETF (RSP) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. RSP is a Invesco Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between RSP and MINT? And which fund is better?

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

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

Summary

RSP MINT
Name Invesco S&P 500 Equal Weight ETF PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Blend Ultrashort Bond
Issuer Invesco PIMCO
AUM 28.62B 14.02B
Avg. Return 13.79% 1.52%
Div. Yield 1.31% 0.56%
Expense Ratio 0.2% 0.36%

The Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% 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%.

RSP’s dividend yield is 0.75% higher than that of MINT (1.31% vs. 0.56%). Also, RSP yielded on average 12.27% more per year over the past decade (13.79% vs. 1.52%). The expense ratio of RSP is 0.16 percentage points lower than MINT’s (0.2% vs. 0.36%).

Fund Composition

Holdings

RSP - Holdings

RSP Holdings Weight
Chipotle Mexican Grill Inc 0.27%
Nike Inc Class B 0.25%
MSCI Inc 0.25%
Monolithic Power Systems Inc 0.25%
Enphase Energy Inc 0.25%
Advanced Micro Devices Inc 0.25%
ResMed Inc 0.24%
PerkinElmer Inc 0.24%
IDEXX Laboratories Inc 0.24%
Danaher Corp 0.24%

RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.

Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.

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

RSP MINT
Mean Return 1.19 0.12
R-squared 94.47 4.7
Std. Deviation 15.36 1.08
Alpha -2.45 0.62
Beta 1.1 0.08
Sharpe Ratio 0.89 0.78
Treynor Ratio 12.12 10.8

The Invesco S&P 500 Equal Weight ETF (RSP) has a Treynor Ratio of 12.12 with a Sharpe Ratio of 0.89 and a Alpha of -2.45. Its Mean Return is 1.19 while RSP’s Standard Deviation is 15.36. Furthermore, the fund has a R-squared of 94.47 and a Beta of 1.1.

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

RSP’s Mean Return is 1.07 points higher than that of MINT and its R-squared is 89.77 points higher. With a Standard Deviation of 15.36, RSP is slightly more volatile than MINT. The Alpha and Beta of RSP are 3.07 points lower and 1.02 points higher than MINT’s Alpha and Beta.

Performance

Annual Returns

RSP vs. MINT - Annual Returns

Year RSP MINT
2020 12.75% 1.63%
2019 28.94% 3.3%
2018 -7.77% 1.72%
2017 18.52% 1.9%
2016 14.34% 1.99%
2015 -2.57% 0.52%
2014 14.02% 0.53%
2013 35.6% 0.72%
2012 17.04% 2.48%
2011 -0.5% 0.42%
2010 21.3% 1.72%

RSP had its best year in 2013 with an annual return of 35.6%. RSP’s worst year over the past decade yielded -7.77% and occurred in 2018. In most years the Invesco S&P 500 Equal Weight ETF provided moderate returns such as in 2014, 2016, and 2012 where annual returns amounted to 14.02%, 14.34%, and 17.04% 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

RSP vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
RSP $10,000 $31,875 13.79%
MINT $10,000 $11,624 1.52%

A $10,000 investment in RSP would have resulted in a final balance of $31,875. This is a profit of $21,875 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.79%.

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%.

RSP’s CAGR is 12.27 percentage points higher than that of MINT and as a result, would have yielded $20,251 more on a $10,000 investment. Thus, RSP outperformed MINT by 12.27% annually.


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