The Schwab U.S. Large-Cap Growth ETF (SCHG) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. SCHG is a Schwab ETFs Large Growth fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between SCHG and MINT? And which fund is better?
The expense ratio of SCHG is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%). SCHG also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, SCHG has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare SCHG vs. MINT. We’ll look at performance and risk metrics, as well as at their industry exposure and annual returns. Moreover, I’ll also discuss SCHG’s and MINT’s holdings, portfolio growth, and fund composition and examine how these affect their overall returns.
Summary
| SCHG | MINT | |
| Name | Schwab U.S. Large-Cap Growth ETF | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Large Growth | Ultrashort Bond |
| Issuer | Schwab ETFs | PIMCO |
| AUM | 15.16B | 14.02B |
| Avg. Return | 17.81% | 1.52% |
| Div. Yield | 0.43% | 0.56% |
| Expense Ratio | 0.04% | 0.36% |
The Schwab U.S. Large-Cap Growth ETF (SCHG) is a Large Growth fund that is issued by Schwab ETFs. It currently has 15.16B total assets under management and has yielded an average annual return of 17.81% over the past 10 years. The fund has a dividend yield of 0.43% 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%.
SCHG’s dividend yield is 0.13% lower than that of MINT (0.43% vs. 0.56%). Also, SCHG yielded on average 16.29% more per year over the past decade (17.81% vs. 1.52%). The expense ratio of SCHG is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%).
Fund Composition
Holdings
| SCHG Holdings | Weight |
| Apple Inc | 11.49% |
| Microsoft Corp | 10.91% |
| Amazon.com Inc | 7.89% |
| Facebook Inc A | 4.45% |
| Alphabet Inc A | 3.93% |
| Alphabet Inc Class C | 3.82% |
| Tesla Inc | 2.8% |
| NVIDIA Corp | 2.67% |
| Visa Inc Class A | 2.12% |
| UnitedHealth Group Inc | 2.02% |
SCHG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 11.49%, 10.91%, 7.89%, 4.45%, and 3.93%.
Alphabet Inc Class C (3.82%), Tesla Inc (2.8%), and NVIDIA Corp (2.67%) have a slightly smaller but still significant weight. Visa Inc Class A and UnitedHealth Group Inc are also represented in the SCHG’s holdings at 2.12% and 2.02%.
| 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
| SCHG | MINT | |
| Mean Return | 1.46 | 0.12 |
| R-squared | 92.92 | 4.7 |
| Std. Deviation | 14.78 | 1.08 |
| Alpha | 1.97 | 0.62 |
| Beta | 1.05 | 0.08 |
| Sharpe Ratio | 1.14 | 0.78 |
| Treynor Ratio | 16.3 | 10.8 |
The Schwab U.S. Large-Cap Growth ETF (SCHG) has a Alpha of 1.97 with a Treynor Ratio of 16.3 and a Beta of 1.05. Its R-squared is 92.92 while SCHG’s Standard Deviation is 14.78. Furthermore, the fund has a Mean Return of 1.46 and a Sharpe Ratio of 1.14.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Sharpe Ratio of 0.78 with a R-squared of 4.7 and a Standard Deviation of 1.08. Its Treynor Ratio is 10.8 while MINT’s Alpha is 0.62. Furthermore, the fund has a Mean Return of 0.12 and a Beta of 0.08.
SCHG’s Mean Return is 1.34 points higher than that of MINT and its R-squared is 88.22 points higher. With a Standard Deviation of 14.78, SCHG is slightly more volatile than MINT. The Alpha and Beta of SCHG are 1.35 points higher and 0.97 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | SCHG | MINT |
| 2020 | 39.13% | 1.63% |
| 2019 | 36.21% | 3.3% |
| 2018 | -1.35% | 1.72% |
| 2017 | 28.04% | 1.9% |
| 2016 | 6.76% | 1.99% |
| 2015 | 3.26% | 0.52% |
| 2014 | 15.74% | 0.53% |
| 2013 | 33.96% | 0.72% |
| 2012 | 17.02% | 2.48% |
| 2011 | -0.67% | 0.42% |
| 2010 | 16.83% | 1.72% |
SCHG had its best year in 2020 with an annual return of 39.13%. SCHG’s worst year over the past decade yielded -1.35% and occurred in 2018. In most years the Schwab U.S. Large-Cap Growth ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 15.74%, 16.83%, and 17.02% 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 |
| SCHG | $10,000 | $47,556 | 17.81% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in SCHG would have resulted in a final balance of $47,556. This is a profit of $37,556 over 10 years and amounts to a compound annual growth rate (CAGR) of 17.81%.
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%.
SCHG’s CAGR is 16.29 percentage points higher than that of MINT and as a result, would have yielded $35,932 more on a $10,000 investment. Thus, SCHG outperformed MINT by 16.29% annually.
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