SDY vs. MINT: What’s The Difference?

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.

Summary

SDY MINT
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
AUM 19.67B 14.02B
Avg. Return 12.44% 1.52%
Div. Yield 2.65% 0.56%
Expense Ratio 0.35% 0.36%

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%).

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Fund Composition

Holdings

SDY - Holdings

SDY Holdings Weight
Exxon Mobil Corp 2.81%
AT&T Inc 2.5%
South Jersey Industries Inc 2.22%
Chevron Corp 2.02%
International Business Machines Corp 2.0%
AbbVie Inc 1.93%
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 - 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.

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Risk Analysis

SDY MINT
Mean Return 1.07 0.12
R-squared 83.62 4.7
Std. Deviation 12.9 1.08
Alpha -0.1 0.62
Beta 0.87 0.08
Sharpe Ratio 0.95 0.78
Treynor Ratio 13.94 10.8

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.

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Performance

Annual Returns

SDY vs. MINT - Annual Returns

Year SDY MINT
2020 1.78% 1.63%
2019 23.37% 3.3%
2018 -2.73% 1.72%
2017 15.84% 1.9%
2016 20.17% 1.99%
2015 -0.7% 0.52%
2014 13.8% 0.53%
2013 30.09% 0.72%
2012 11.51% 2.48%
2011 7.28% 0.42%
2010 16.41% 1.72%

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.

Portfolio Growth

SDY vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SDY $10,000 $29,900 12.44%
MINT $10,000 $11,624 1.52%

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.


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