TQQQ vs. MINT: What’s The Difference?

The ProShares UltraPro QQQ (TQQQ) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. TQQQ is a ProShares Trading–Leveraged Equity fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between TQQQ and MINT? And which fund is better?

The expense ratio of TQQQ is 0.59 percentage points higher than MINT’s (0.95% vs. 0.36%). TQQQ also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, TQQQ has provided higher returns than MINT over the past 10 years.

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

Summary

TQQQ MINT
Name ProShares UltraPro QQQ PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Trading–Leveraged Equity Ultrashort Bond
Issuer ProShares PIMCO
AUM 12.41B 14.02B
Avg. Return 61.22% 1.52%
Div. Yield 0.0% 0.56%
Expense Ratio 0.95% 0.36%

The ProShares UltraPro QQQ (TQQQ) is a Trading–Leveraged Equity fund that is issued by ProShares. It currently has 12.41B total assets under management and has yielded an average annual return of 61.22% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.95%.

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%.

TQQQ’s dividend yield is 0.56% lower than that of MINT (0.0% vs. 0.56%). Also, TQQQ yielded on average 59.70% more per year over the past decade (61.22% vs. 1.52%). The expense ratio of TQQQ is 0.59 percentage points higher than MINT’s (0.95% vs. 0.36%).

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Fund Composition

Holdings

TQQQ - Holdings

TQQQ Holdings Weight
Nasdaq 100 Index Swap Goldman Sachs International 45.11%
Nasdaq 100 Index Swap Societe Generale 44.73%
Nasdaq 100 Index Swap Bnp Paribas 38.05%
Nasdaq 100 Index Swap Bank Of America Na 31.53%
Nasdaq 100 Index Swap Citibank Na 31.49%
Nasdaq 100 Index Swap Jp Morgan Securities 26.2%
Apple Inc 7.49%
Microsoft Corp 6.69%
Nasdaq 100 Index Swap Credit Suisse International 5.9%
Amazon.com Inc 5.68%

TQQQ’s Top Holdings are Nasdaq 100 Index Swap Goldman Sachs International, Nasdaq 100 Index Swap Societe Generale, Nasdaq 100 Index Swap Bnp Paribas, Nasdaq 100 Index Swap Bank Of America Na, and Nasdaq 100 Index Swap Citibank Na at 45.11%, 44.73%, 38.05%, 31.53%, and 31.49%.

Nasdaq 100 Index Swap Jp Morgan Securities (26.2%), Apple Inc (7.49%), and Microsoft Corp (6.69%) have a slightly smaller but still significant weight. Nasdaq 100 Index Swap Credit Suisse International and Amazon.com Inc are also represented in the TQQQ’s holdings at 5.9% and 5.68%.

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

TQQQ MINT
Mean Return 4.65 0.12
R-squared 83.64 4.7
Std. Deviation 50.08 1.08
Alpha 7.29 0.62
Beta 3.37 0.08
Sharpe Ratio 1.1 0.78
Treynor Ratio 15.65 10.8

The ProShares UltraPro QQQ (TQQQ) has a Standard Deviation of 50.08 with a Alpha of 7.29 and a Beta of 3.37. Its Treynor Ratio is 15.65 while TQQQ’s R-squared is 83.64. Furthermore, the fund has a Mean Return of 4.65 and a Sharpe Ratio of 1.1.

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

TQQQ’s Mean Return is 4.53 points higher than that of MINT and its R-squared is 78.94 points higher. With a Standard Deviation of 50.08, TQQQ is slightly more volatile than MINT. The Alpha and Beta of TQQQ are 6.67 points higher and 3.29 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

TQQQ vs. MINT - Annual Returns

Year TQQQ MINT
2020 109.85% 1.63%
2019 133.93% 3.3%
2018 -19.65% 1.72%
2017 118.65% 1.9%
2016 11.04% 1.99%
2015 17.41% 0.52%
2014 56.82% 0.53%
2013 139.98% 0.72%
2012 51.95% 2.48%
2011 -7.77% 0.42%
2010 0.0% 1.72%

TQQQ had its best year in 2013 with an annual return of 139.98%. TQQQ’s worst year over the past decade yielded -19.65% and occurred in 2018. In most years the ProShares UltraPro QQQ provided moderate returns such as in 2015, 2012, and 2014 where annual returns amounted to 17.41%, 51.95%, and 56.82% 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

TQQQ vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
TQQQ $10,000 $593,012 61.22%
MINT $10,000 $11,624 1.52%

A $10,000 investment in TQQQ would have resulted in a final balance of $593,012. This is a profit of $583,012 over 10 years and amounts to a compound annual growth rate (CAGR) of 61.22%.

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%.

TQQQ’s CAGR is 59.70 percentage points higher than that of MINT and as a result, would have yielded $581,388 more on a $10,000 investment. Thus, TQQQ outperformed MINT by 59.70% annually.


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