The Schwab U.S. Dividend Equity ETF (SCHD) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. SCHD is a Schwab ETFs Large Value fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between SCHD and MINT? And which fund is better?
The expense ratio of SCHD is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%). SCHD also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, SCHD has provided higher returns than MINT over the past 8 years.
In this article, we’ll compare SCHD vs. MINT. We’ll look at fund composition and industry exposure, as well as at their portfolio growth and performance. Moreover, I’ll also discuss SCHD’s and MINT’s risk metrics, annual returns, and holdings and examine how these affect their overall returns.
Summary
| SCHD | MINT | |
| Name | Schwab U.S. Dividend Equity ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Large Value | Ultrashort Bond |
| Issuer | Schwab ETFs | PIMCO |
| AUM | 26B | 14.02B |
| Avg. Return | 14.80% | 1.52% |
| Div. Yield | 2.89% | 0.56% |
| Expense Ratio | 0.06% | 0.36% |
The Schwab U.S. Dividend Equity ETF (SCHD) is a Large Value fund that is issued by Schwab ETFs. It currently has 26B total assets under management and has yielded an average annual return of 14.80% over the past 10 years. The fund has a dividend yield of 2.89% 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%.
SCHD’s dividend yield is 2.33% higher than that of MINT (2.89% vs. 0.56%). Also, SCHD yielded on average 13.28% more per year over the past decade (14.80% vs. 1.52%). The expense ratio of SCHD is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%).
Fund Composition
Holdings
| SCHD Holdings | Weight |
| Merck & Co Inc | 4.24% |
| The Home Depot Inc | 4.19% |
| Texas Instruments Inc | 4.16% |
| Broadcom Inc | 4.15% |
| Amgen Inc | 4.11% |
| PepsiCo Inc | 4.09% |
| BlackRock Inc | 4.05% |
| Pfizer Inc | 3.97% |
| Verizon Communications Inc | 3.96% |
| Cisco Systems Inc | 3.96% |
SCHD’s Top Holdings are Merck & Co Inc, The Home Depot Inc, Texas Instruments Inc, Broadcom Inc, and Amgen Inc at 4.24%, 4.19%, 4.16%, 4.15%, and 4.11%.
PepsiCo Inc (4.09%), BlackRock Inc (4.05%), and Pfizer Inc (3.97%) have a slightly smaller but still significant weight. Verizon Communications Inc and Cisco Systems Inc are also represented in the SCHD’s holdings at 3.96% and 3.96%.
| 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
| SCHD | 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 Schwab U.S. Dividend Equity ETF (SCHD) has a Treynor Ratio of 0 with a Sharpe Ratio of 0 and a Standard Deviation of 0. Its Mean Return is 0 while SCHD’s Alpha is 0. Furthermore, the fund has a Beta of 0 and a R-squared of 0.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a R-squared of 4.7 with a Sharpe Ratio of 0.78 and a Standard Deviation of 1.08. Its Beta is 0.08 while MINT’s Treynor Ratio is 10.8. Furthermore, the fund has a Alpha of 0.62 and a Mean Return of 0.12.
SCHD’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, SCHD is slightly less volatile than MINT. The Alpha and Beta of SCHD are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | SCHD | MINT |
| 2020 | 15.11% | 1.63% |
| 2019 | 27.28% | 3.3% |
| 2018 | -5.46% | 1.72% |
| 2017 | 20.88% | 1.9% |
| 2016 | 16.25% | 1.99% |
| 2015 | -0.21% | 0.52% |
| 2014 | 11.66% | 0.53% |
| 2013 | 32.9% | 0.72% |
| 2012 | 11.4% | 2.48% |
| 2011 | 0.0% | 0.42% |
| 2010 | 0.0% | 1.72% |
SCHD had its best year in 2013 with an annual return of 32.9%. SCHD’s worst year over the past decade yielded -5.46% and occurred in 2018. In most years the Schwab U.S. Dividend Equity ETF provided moderate returns such as in 2012, 2014, and 2020 where annual returns amounted to 11.4%, 11.66%, and 15.11% 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 |
| SCHD | $10,000 | $28,823 | 14.80% |
| MINT | $10,000 | $11,295 | 1.52% |
A $10,000 investment in SCHD would have resulted in a final balance of $28,823. This is a profit of $18,823 over 8 years and amounts to a compound annual growth rate (CAGR) of 14.80%.
With a $10,000 investment in MINT, the end total would have been $11,295. This equates to a $1,295 profit over 8 years and a compound annual growth rate (CAGR) of 1.52%.
SCHD’s CAGR is 13.28 percentage points higher than that of MINT and as a result, would have yielded $17,528 more on a $10,000 investment. Thus, SCHD outperformed MINT by 13.28% annually.
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