The SPDR S&P Dividend ETF (SDY) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. SDY is a SPDR State Street Global Advisors Large Value fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between SDY and MINT? And which fund is better?
The expense ratio of SDY is 0.01 percentage points lower than MINT’s (0.35% vs. 0.36%). SDY also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, SDY has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare SDY vs. MINT. We’ll look at risk metrics and holdings, as well as at their fund composition and portfolio growth. Moreover, I’ll also discuss SDY’s and MINT’s performance, annual returns, and industry exposure and examine how these affect their overall returns.
|Name||SPDR S&P Dividend ETF||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Large Value||Ultrashort Bond|
|Issuer||SPDR State Street Global Advisors||PIMCO|
The SPDR S&P Dividend ETF (SDY) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 19.67B total assets under management and has yielded an average annual return of 12.44% over the past 10 years. The fund has a dividend yield of 2.65% with an expense ratio of 0.35%.
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%.
SDY’s dividend yield is 2.09% higher than that of MINT (2.65% vs. 0.56%). Also, SDY yielded on average 10.92% more per year over the past decade (12.44% vs. 1.52%). The expense ratio of SDY is 0.01 percentage points lower than MINT’s (0.35% vs. 0.36%).
FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).
|Exxon Mobil Corp||2.81%|
|South Jersey Industries Inc||2.22%|
|International Business Machines Corp||2.0%|
|National Retail Properties Inc||1.86%|
|Federal Realty Investment Trust||1.77%|
|Realty Income Corp||1.7%|
|Old Republic International Corp||1.65%|
SDY’s Top Holdings are Exxon Mobil Corp, AT&T Inc, South Jersey Industries Inc, Chevron Corp, and International Business Machines Corp at 2.81%, 2.5%, 2.22%, 2.02%, and 2.0%.
AbbVie Inc (1.93%), National Retail Properties Inc (1.86%), and Federal Realty Investment Trust (1.77%) have a slightly smaller but still significant weight. Realty Income Corp and Old Republic International Corp are also represented in the SDY’s holdings at 1.7% and 1.65%.
|MINT Bond Sectors||Weight|
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.
NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).
The SPDR S&P Dividend ETF (SDY) has a Standard Deviation of 12.9 with a Beta of 0.87 and a R-squared of 83.62. Its Mean Return is 1.07 while SDY’s Alpha is -0.1. Furthermore, the fund has a Treynor Ratio of 13.94 and a Sharpe Ratio of 0.95.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Mean Return of 0.12 with a Sharpe Ratio of 0.78 and a Alpha of 0.62. Its Beta is 0.08 while MINT’s Standard Deviation is 1.08. Furthermore, the fund has a R-squared of 4.7 and a Treynor Ratio of 10.8.
SDY’s Mean Return is 0.95 points higher than that of MINT and its R-squared is 78.92 points higher. With a Standard Deviation of 12.9, SDY is slightly more volatile than MINT. The Alpha and Beta of SDY are 0.72 points lower and 0.79 points higher than MINT’s Alpha and Beta.
BTW: Uncorrelated crypto assets such as Bitcoin can serve as a hedge and mitigate risk. I've allocated around 5% of my portfolio to crypto assets through Coinbase - the simplest and cheapest broker I've found! Click here to read more (link to Coinbase).
SDY had its best year in 2013 with an annual return of 30.09%. SDY’s worst year over the past decade yielded -2.73% and occurred in 2018. In most years the SPDR S&P Dividend ETF provided moderate returns such as in 2012, 2014, and 2017 where annual returns amounted to 11.51%, 13.8%, and 15.84% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in SDY would have resulted in a final balance of $29,900. This is a profit of $19,900 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.44%.
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%.
SDY’s CAGR is 10.92 percentage points higher than that of MINT and as a result, would have yielded $18,276 more on a $10,000 investment. Thus, SDY outperformed MINT by 10.92% annually.
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
2) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
3) If you are interested in crypto, check out Coinbase. I've started allocating a small amount of assets to the growing crypto space and Coinbase has just been a breeze to use. Once you register, make sure to also open an Coinbase Pro account to buy crypto at the lowest fees on the market (just 0.1%!).
To see all of my most up-to-date recommendations, check out the Recommended Tools section.