The Vanguard Small-Cap Index Fund ETF Shares (VB) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VB is a Vanguard Small Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VB and MINT? And which fund is better?
The expense ratio of VB is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%). VB also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VB has provided higher returns than MINT over the past ten years.
In this article, we’ll compare VB vs. MINT. We’ll look at annual returns and fund composition, as well as at their industry exposure and portfolio growth. Moreover, I’ll also discuss VB’s and MINT’s holdings, performance, and risk metrics and examine how these affect their overall returns.
|Name||Vanguard Small-Cap Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Small Blend||Ultrashort Bond|
The Vanguard Small-Cap Index Fund ETF Shares (VB) is a Small Blend fund that is issued by Vanguard. It currently has 137.72B total assets under management and has yielded an average annual return of 14.25% over the past 10 years. The fund has a dividend yield of 1.14% with an expense ratio of 0.05%.
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%.
VB’s dividend yield is 0.58% higher than that of MINT (1.14% vs. 0.56%). Also, VB yielded on average 12.73% more per year over the past decade (14.25% vs. 1.52%). The expense ratio of VB is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%).
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|Charles River Laboratories International Inc||0.34%|
|Diamondback Energy Inc||0.31%|
|VICI Properties Inc Ordinary Shares||0.3%|
VB’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.34%, 0.32%, 0.32%, 0.32%, and 0.31%.
Diamondback Energy Inc (0.31%), VICI Properties Inc Ordinary Shares (0.3%), and IDEX Corp (0.3%) have a slightly smaller but still significant weight. Entegris Inc and Novavax Inc are also represented in the VB’s holdings at 0.3% and 0.29%.
|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 Vanguard Small-Cap Index Fund ETF Shares (VB) has a Sharpe Ratio of 0.74 with a Mean Return of 1.15 and a Treynor Ratio of 10.15. Its R-squared is 85.03 while VB’s Standard Deviation is 17.82. Furthermore, the fund has a Alpha of -4.02 and a Beta of 1.21.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Alpha of 0.62 with a Mean Return of 0.12 and a Sharpe Ratio of 0.78. Its Treynor Ratio is 10.8 while MINT’s Standard Deviation is 1.08. Furthermore, the fund has a R-squared of 4.7 and a Beta of 0.08.
VB’s Mean Return is 1.03 points higher than that of MINT and its R-squared is 80.33 points higher. With a Standard Deviation of 17.82, VB is slightly more volatile than MINT. The Alpha and Beta of VB are 4.64 points lower and 1.13 points higher than MINT’s Alpha and Beta.
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VB had its best year in 2013 with an annual return of 37.8%. VB’s worst year over the past decade yielded -9.3% and occurred in 2018. In most years the Vanguard Small-Cap Index Fund ETF Shares provided moderate returns such as in 2017, 2012, and 2016 where annual returns amounted to 16.24%, 18.22%, and 18.31% 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 VB would have resulted in a final balance of $31,069. This is a profit of $21,069 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.25%.
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%.
VB’s CAGR is 12.73 percentage points higher than that of MINT and as a result, would have yielded $19,445 more on a $10,000 investment. Thus, VB outperformed MINT by 12.73% annually.
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