SCHX vs. MINT: What’s The Difference?

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

The expense ratio of SCHX is 0.33 percentage points lower than MINT’s (0.03% vs. 0.36%). SCHX also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, SCHX has provided higher returns than MINT over the past ten years.

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

Summary

SCHX MINT
Name Schwab U.S. Large-Cap ETF PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Blend Ultrashort Bond
Issuer Schwab ETFs PIMCO
AUM 30.89B 14.02B
Avg. Return 14.60% 1.52%
Div. Yield 1.41% 0.56%
Expense Ratio 0.03% 0.36%

The Schwab U.S. Large-Cap ETF (SCHX) is a Large Blend fund that is issued by Schwab ETFs. It currently has 30.89B total assets under management and has yielded an average annual return of 14.60% over the past 10 years. The fund has a dividend yield of 1.41% with an expense ratio of 0.03%.

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%.

SCHX’s dividend yield is 0.85% higher than that of MINT (1.41% vs. 0.56%). Also, SCHX yielded on average 13.08% more per year over the past decade (14.60% vs. 1.52%). The expense ratio of SCHX is 0.33 percentage points lower than MINT’s (0.03% vs. 0.36%).

Fund Composition

Holdings

SCHX - Holdings

SCHX Holdings Weight
Apple Inc 5.37%
Microsoft Corp 5.1%
Amazon.com Inc 3.69%
Facebook Inc A 2.08%
Alphabet Inc A 1.84%
Alphabet Inc Class C 1.78%
Berkshire Hathaway Inc Class B 1.32%
Tesla Inc 1.31%
NVIDIA Corp 1.25%
JPMorgan Chase & Co 1.18%

SCHX’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.37%, 5.1%, 3.69%, 2.08%, and 1.84%.

Alphabet Inc Class C (1.78%), Berkshire Hathaway Inc Class B (1.32%), and Tesla Inc (1.31%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SCHX’s holdings at 1.25% and 1.18%.

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

SCHX MINT
Mean Return 1.24 0.12
R-squared 99.83 4.7
Std. Deviation 13.8 1.08
Alpha -0.14 0.62
Beta 1.02 0.08
Sharpe Ratio 1.03 0.78
Treynor Ratio 14.06 10.8

The Schwab U.S. Large-Cap ETF (SCHX) has a Alpha of -0.14 with a R-squared of 99.83 and a Mean Return of 1.24. Its Sharpe Ratio is 1.03 while SCHX’s Beta is 1.02. Furthermore, the fund has a Standard Deviation of 13.8 and a Treynor Ratio of 14.06.

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

SCHX’s Mean Return is 1.12 points higher than that of MINT and its R-squared is 95.13 points higher. With a Standard Deviation of 13.8, SCHX is slightly more volatile than MINT. The Alpha and Beta of SCHX are 0.76 points lower and 0.94 points higher than MINT’s Alpha and Beta.

Performance

Annual Returns

SCHX vs. MINT - Annual Returns

Year SCHX MINT
2020 20.9% 1.63%
2019 31.4% 3.3%
2018 -4.52% 1.72%
2017 21.91% 1.9%
2016 11.78% 1.99%
2015 1.02% 0.52%
2014 13.33% 0.53%
2013 32.54% 0.72%
2012 16.06% 2.48%
2011 1.61% 0.42%
2010 15.88% 1.72%

SCHX had its best year in 2013 with an annual return of 32.54%. SCHX’s worst year over the past decade yielded -4.52% and occurred in 2018. In most years the Schwab U.S. Large-Cap ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.33%, 15.88%, and 16.06% 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

SCHX vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SCHX $10,000 $36,987 14.60%
MINT $10,000 $11,624 1.52%

A $10,000 investment in SCHX would have resulted in a final balance of $36,987. This is a profit of $26,987 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.60%.

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%.

SCHX’s CAGR is 13.08 percentage points higher than that of MINT and as a result, would have yielded $25,363 more on a $10,000 investment. Thus, SCHX outperformed MINT by 13.08% annually.


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