The iShares 1-3 Year Treasury Bond ETF (SHY) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. SHY is a iShares Short Government fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between SHY and MINT? And which fund is better?
The expense ratio of SHY is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%). SHY is mostly comprised of AAA bonds and MINT has a high exposure to Others bond. Overall, SHY has provided lower returns than MINT over the past 10 years.
In this article, we’ll compare SHY vs. MINT. We’ll look at performance and annual returns, as well as at their risk metrics and holdings. Moreover, I’ll also discuss SHY’s and MINT’s industry exposure, fund composition, and portfolio growth and examine how these affect their overall returns.
|Name||iShares 1-3 Year Treasury Bond ETF||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Short Government||Ultrashort Bond|
The iShares 1-3 Year Treasury Bond ETF (SHY) is a Short Government fund that is issued by iShares. It currently has 19.51B total assets under management and has yielded an average annual return of 1.27% over the past 10 years. The fund has a dividend yield of 0.46% with an expense ratio of 0.15%.
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%.
SHY’s dividend yield is 0.10% lower than that of MINT (0.46% vs. 0.56%). Also, SHY yielded on average 0.25% less per year over the past decade (1.27% vs. 1.52%). The expense ratio of SHY is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%).
|SHY Bond Sectors||Weight|
SHY’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 99.67%, 0.33%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.
|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.
The iShares 1-3 Year Treasury Bond ETF (SHY) has a Mean Return of 0.09 with a Treynor Ratio of 2.6 and a Alpha of -0.03. Its Standard Deviation is 0.89 while SHY’s Sharpe Ratio is 0.54. Furthermore, the fund has a R-squared of 39.11 and a Beta of 0.18.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Beta of 0.08 with a Sharpe Ratio of 0.78 and a Alpha of 0.62. Its Standard Deviation is 1.08 while MINT’s Treynor Ratio is 10.8. Furthermore, the fund has a R-squared of 4.7 and a Mean Return of 0.12.
SHY’s Mean Return is 0.03 points lower than that of MINT and its R-squared is 34.41 points higher. With a Standard Deviation of 0.89, SHY is slightly less volatile than MINT. The Alpha and Beta of SHY are 0.65 points lower and 0.10 points higher than MINT’s Alpha and Beta.
SHY had its best year in 2019 with an annual return of 3.42%. SHY’s worst year over the past decade yielded 0.23% and occurred in 2013. In most years the iShares 1-3 Year Treasury Bond ETF provided moderate returns such as in 2014, 2016, and 2011 where annual returns amounted to 0.48%, 0.75%, and 1.43% 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 SHY would have resulted in a final balance of $11,235. This is a profit of $1,235 over 10 years and amounts to a compound annual growth rate (CAGR) of 1.27%.
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%.
SHY’s CAGR is 0.25 percentage points lower than that of MINT and as a result, would have yielded $389 less on a $10,000 investment. Thus, SHY performed worse than MINT by 0.25% 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)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) 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!
3) 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!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.