The iShares MSCI USA Min Vol Factor ETF (USMV) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. USMV is a iShares Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between USMV and MINT? And which fund is better?
The expense ratio of USMV is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%). USMV also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, USMV has provided higher returns than MINT over the past 8 years.
In this article, we’ll compare USMV vs. MINT. We’ll look at risk metrics and annual returns, as well as at their industry exposure and performance. Moreover, I’ll also discuss USMV’s and MINT’s portfolio growth, holdings, and fund composition and examine how these affect their overall returns.
|Name||iShares MSCI USA Min Vol Factor ETF||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Large Blend||Ultrashort Bond|
The iShares MSCI USA Min Vol Factor ETF (USMV) is a Large Blend fund that is issued by iShares. It currently has 27.6B total assets under management and has yielded an average annual return of 13.89% over the past 10 years. The fund has a dividend yield of 1.5% 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%.
USMV’s dividend yield is 0.94% higher than that of MINT (1.5% vs. 0.56%). Also, USMV yielded on average 12.37% more per year over the past decade (13.89% vs. 1.52%). The expense ratio of USMV is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%).
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|Eli Lilly and Co||1.64%|
|T-Mobile US Inc||1.51%|
|Accenture PLC Class A||1.51%|
|Visa Inc Class A||1.49%|
|Waste Management Inc||1.45%|
|The Kroger Co||1.44%|
|Johnson & Johnson||1.42%|
|Gilead Sciences Inc||1.42%|
USMV’s Top Holdings are Eli Lilly and Co, Microsoft Corp, T-Mobile US Inc, Accenture PLC Class A, and Visa Inc Class A at 1.64%, 1.62%, 1.51%, 1.51%, and 1.49%.
Waste Management Inc (1.45%), Adobe Inc (1.45%), and The Kroger Co (1.44%) have a slightly smaller but still significant weight. Johnson & Johnson and Gilead Sciences Inc are also represented in the USMV’s holdings at 1.42% and 1.42%.
|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.
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The iShares MSCI USA Min Vol Factor ETF (USMV) has a Alpha of 0 with a Treynor Ratio of 0 and a Sharpe Ratio of 0. Its Standard Deviation is 0 while USMV’s Mean Return is 0. Furthermore, the fund has a R-squared of 0 and a Beta of 0.
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 Standard Deviation of 1.08. Its Treynor Ratio is 10.8 while MINT’s Alpha is 0.62. Furthermore, the fund has a Mean Return of 0.12 and a R-squared of 4.7.
USMV’s Mean Return is 0.12 points lower than that of MINT and its R-squared is 4.70 points lower. With a Standard Deviation of 0, USMV is slightly less volatile than MINT. The Alpha and Beta of USMV are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.
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USMV had its best year in 2019 with an annual return of 27.77%. USMV’s worst year over the past decade yielded 0.0% and occurred in 2011. In most years the iShares MSCI USA Min Vol Factor ETF provided moderate returns such as in 2020, 2016, and 2012 where annual returns amounted to 5.6%, 10.5%, and 11.04% 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 USMV would have resulted in a final balance of $27,607. This is a profit of $17,607 over 8 years and amounts to a compound annual growth rate (CAGR) of 13.89%.
With a $10,000 investment in MINT, the end total would have been $11,295. This equates to a $1,295 profit over 8 years and a compound annual growth rate (CAGR) of 1.52%.
USMV’s CAGR is 12.37 percentage points higher than that of MINT and as a result, would have yielded $16,312 more on a $10,000 investment. Thus, USMV outperformed MINT by 12.37% annually.
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