VBK vs. MINT: What’s The Difference?

The Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VBK is a Vanguard Small Growth fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VBK and MINT? And which fund is better?

The expense ratio of VBK is 0.29 percentage points lower than MINT’s (0.07% vs. 0.36%). VBK also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VBK has provided higher returns than MINT over the past 10 years.

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

Summary

VBK MINT
Name Vanguard Small-Cap Growth Index Fund ETF Shares PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Small Growth Ultrashort Bond
Issuer Vanguard PIMCO
AUM 37.89B 14.02B
Avg. Return 16.53% 1.52%
Div. Yield 0.45% 0.56%
Expense Ratio 0.07% 0.36%

The Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) is a Small Growth fund that is issued by Vanguard. It currently has 37.89B total assets under management and has yielded an average annual return of 16.53% over the past 10 years. The fund has a dividend yield of 0.45% with an expense ratio of 0.07%.

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%.

VBK’s dividend yield is 0.11% lower than that of MINT (0.45% vs. 0.56%). Also, VBK yielded on average 15.01% more per year over the past decade (16.53% vs. 1.52%). The expense ratio of VBK is 0.29 percentage points lower than MINT’s (0.07% vs. 0.36%).

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Fund Composition

Holdings

VBK - Holdings

VBK Holdings Weight
Charles River Laboratories International Inc 0.78%
Pool Corp 0.73%
Bio-Techne Corp 0.73%
Avantor Inc 0.73%
PerkinElmer Inc 0.72%
Entegris Inc 0.7%
PTC Inc 0.62%
Fair Isaac Corp 0.57%
Bill.com Holdings Inc Ordinary Shares 0.56%
Avalara Inc 0.55%

VBK’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.78%, 0.73%, 0.73%, 0.73%, and 0.72%.

Entegris Inc (0.7%), PTC Inc (0.62%), and Fair Isaac Corp (0.57%) have a slightly smaller but still significant weight. Bill.com Holdings Inc Ordinary Shares and Avalara Inc are also represented in the VBK’s holdings at 0.56% and 0.55%.

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

VBK MINT
Mean Return 1.22 0.12
R-squared 80.56 4.7
Std. Deviation 17.95 1.08
Alpha -2.81 0.62
Beta 1.18 0.08
Sharpe Ratio 0.78 0.78
Treynor Ratio 11.18 10.8

The Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has a Beta of 1.18 with a Sharpe Ratio of 0.78 and a R-squared of 80.56. Its Standard Deviation is 17.95 while VBK’s Alpha is -2.81. Furthermore, the fund has a Mean Return of 1.22 and a Treynor Ratio of 11.18.

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

VBK’s Mean Return is 1.10 points higher than that of MINT and its R-squared is 75.86 points higher. With a Standard Deviation of 17.95, VBK is slightly more volatile than MINT. The Alpha and Beta of VBK are 3.43 points lower and 1.10 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

VBK vs. MINT - Annual Returns

Year VBK MINT
2020 35.29% 1.63%
2019 32.75% 3.3%
2018 -5.68% 1.72%
2017 21.9% 1.9%
2016 10.74% 1.99%
2015 -2.51% 0.52%
2014 4.02% 0.53%
2013 38.18% 0.72%
2012 17.67% 2.48%
2011 -1.43% 0.42%
2010 30.87% 1.72%

VBK had its best year in 2013 with an annual return of 38.18%. VBK’s worst year over the past decade yielded -5.68% and occurred in 2018. In most years the Vanguard Small-Cap Growth Index Fund ETF Shares provided moderate returns such as in 2016, 2012, and 2017 where annual returns amounted to 10.74%, 17.67%, and 21.9% 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

VBK vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VBK $10,000 $37,165 16.53%
MINT $10,000 $11,624 1.52%

A $10,000 investment in VBK would have resulted in a final balance of $37,165. This is a profit of $27,165 over 10 years and amounts to a compound annual growth rate (CAGR) of 16.53%.

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%.

VBK’s CAGR is 15.01 percentage points higher than that of MINT and as a result, would have yielded $25,541 more on a $10,000 investment. Thus, VBK outperformed MINT by 15.01% annually.


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