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SCHA vs. MINT: What’s The Difference?

The Schwab U.S. Small-Cap ETF (SCHA) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. SCHA is a Schwab ETFs Small Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between SCHA and MINT? And which fund is better?

The expense ratio of SCHA is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%). SCHA also has a high exposure to the healthcare sector while MINT is mostly comprised of Others bonds. Overall, SCHA has provided higher returns than MINT over the past 10 years.

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

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Summary

SCHAMINT
NameSchwab U.S. Small-Cap ETFPIMCO Enhanced Short Maturity Active Exchange-Traded Fund
CategorySmall BlendUltrashort Bond
IssuerSchwab ETFsPIMCO
AUM16.51B14.02B
Avg. Return12.62%1.52%
Div. Yield0.98%0.56%
Expense Ratio0.04%0.36%

The Schwab U.S. Small-Cap ETF (SCHA) is a Small Blend fund that is issued by Schwab ETFs. It currently has 16.51B total assets under management and has yielded an average annual return of 12.62% over the past 10 years. The fund has a dividend yield of 0.98% with an expense ratio of 0.04%.

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%.

SCHA’s dividend yield is 0.42% higher than that of MINT (0.98% vs. 0.56%). Also, SCHA yielded on average 11.10% more per year over the past decade (12.62% vs. 1.52%). The expense ratio of SCHA is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%).

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Fund Composition

Holdings

SCHA - Holdings

SCHA HoldingsWeight
AMC Entertainment Holdings Inc Class A0.67%
Caesars Entertainment Inc0.51%
Cloudflare Inc0.48%
NovoCure Ltd0.45%
Plug Power Inc0.41%
10x Genomics Inc Ordinary Shares – Class A0.34%
GameStop Corp Class A0.28%
RH0.27%
Penn National Gaming Inc0.27%
Axon Enterprise Inc0.27%

SCHA’s Top Holdings are AMC Entertainment Holdings Inc Class A, Caesars Entertainment Inc, Cloudflare Inc, NovoCure Ltd, and Plug Power Inc at 0.67%, 0.51%, 0.48%, 0.45%, and 0.41%.

10x Genomics Inc Ordinary Shares – Class A (0.34%), GameStop Corp Class A (0.28%), and RH (0.27%) have a slightly smaller but still significant weight. Penn National Gaming Inc and Axon Enterprise Inc are also represented in the SCHA’s holdings at 0.27% and 0.27%.

MINT - Holdings

MINT Bond SectorsWeight
Others0.0%
Below B0.0%
B0.0%
BB0.0%
BBB0.0%
A0.0%
AA0.0%
AAA0.0%
US Government0.0%

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

SCHAMINT
Mean Return1.140.12
R-squared82.264.7
Std. Deviation18.681.08
Alpha-4.650.62
Beta1.250.08
Sharpe Ratio0.70.78
Treynor Ratio9.6210.8

The Schwab U.S. Small-Cap ETF (SCHA) has a Standard Deviation of 18.68 with a R-squared of 82.26 and a Beta of 1.25. Its Mean Return is 1.14 while SCHA’s Alpha is -4.65. Furthermore, the fund has a Sharpe Ratio of 0.7 and a Treynor Ratio of 9.62.

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

SCHA’s Mean Return is 1.02 points higher than that of MINT and its R-squared is 77.56 points higher. With a Standard Deviation of 18.68, SCHA is slightly more volatile than MINT. The Alpha and Beta of SCHA are 5.27 points lower and 1.17 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

SCHA vs. MINT - Annual Returns

YearSCHAMINT
202019.35%1.63%
201926.54%3.3%
2018-11.75%1.72%
201715.04%1.9%
201619.88%1.99%
2015-4.24%0.52%
20146.53%0.53%
201339.59%0.72%
201218.24%2.48%
2011-2.95%0.42%
201028.31%1.72%

SCHA had its best year in 2013 with an annual return of 39.59%. SCHA’s worst year over the past decade yielded -11.75% and occurred in 2018. In most years the Schwab U.S. Small-Cap ETF provided moderate returns such as in 2017, 2012, and 2020 where annual returns amounted to 15.04%, 18.24%, and 19.35% 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

SCHA vs. MINT - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
SCHA$10,000$30,03512.62%
MINT$10,000$11,6241.52%

A $10,000 investment in SCHA would have resulted in a final balance of $30,035. This is a profit of $20,035 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.62%.

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%.

SCHA’s CAGR is 11.10 percentage points higher than that of MINT and as a result, would have yielded $18,411 more on a $10,000 investment. Thus, SCHA outperformed MINT by 11.10% annually.


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