The Vanguard Small-Cap Value Index Fund ETF Shares (VBR) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VBR is a Vanguard Small Value fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VBR and MINT? And which fund is better?
The expense ratio of VBR is 0.29 percentage points lower than MINT’s (0.07% vs. 0.36%). VBR also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, VBR has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare VBR vs. MINT. We’ll look at holdings and fund composition, as well as at their portfolio growth and annual returns. Moreover, I’ll also discuss VBR’s and MINT’s industry exposure, performance, and risk metrics and examine how these affect their overall returns.
|Name||Vanguard Small-Cap Value Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Small Value||Ultrashort Bond|
The Vanguard Small-Cap Value Index Fund ETF Shares (VBR) is a Small Value fund that is issued by Vanguard. It currently has 48.08B total assets under management and has yielded an average annual return of 12.28% over the past 10 years. The fund has a dividend yield of 1.6% 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%.
VBR’s dividend yield is 1.04% higher than that of MINT (1.6% vs. 0.56%). Also, VBR yielded on average 10.76% more per year over the past decade (12.28% vs. 1.52%). The expense ratio of VBR is 0.29 percentage points lower than MINT’s (0.07% vs. 0.36%).
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|Diamondback Energy Inc||0.55%|
|VICI Properties Inc Ordinary Shares||0.54%|
|Nuance Communications Inc||0.5%|
|Molina Healthcare Inc||0.48%|
|Howmet Aerospace Inc||0.44%|
|Apollo Global Management Inc Class A||0.42%|
|Brown & Brown Inc||0.41%|
VBR’s Top Holdings are Diamondback Energy Inc, VICI Properties Inc Ordinary Shares, IDEX Corp, Nuance Communications Inc, and Molina Healthcare Inc at 0.55%, 0.54%, 0.54%, 0.5%, and 0.48%.
Signature Bank (0.46%), Novavax Inc (0.44%), and Howmet Aerospace Inc (0.44%) have a slightly smaller but still significant weight. Apollo Global Management Inc Class A and Brown & Brown Inc are also represented in the VBR’s holdings at 0.42% and 0.41%.
|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 Value Index Fund ETF Shares (VBR) has a Sharpe Ratio of 0.67 with a Alpha of -5.09 and a Standard Deviation of 18.37. Its Beta is 1.23 while VBR’s R-squared is 82.2. Furthermore, the fund has a Mean Return of 1.08 and a Treynor Ratio of 9.15.
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 R-squared of 4.7. Its Mean Return is 0.12 while MINT’s Beta is 0.08. Furthermore, the fund has a Standard Deviation of 1.08 and a Treynor Ratio of 10.8.
VBR’s Mean Return is 0.96 points higher than that of MINT and its R-squared is 77.50 points higher. With a Standard Deviation of 18.37, VBR is slightly more volatile than MINT. The Alpha and Beta of VBR are 5.71 points lower and 1.15 points higher than MINT’s Alpha and Beta.
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VBR had its best year in 2013 with an annual return of 36.57%. VBR’s worst year over the past decade yielded -12.22% and occurred in 2018. In most years the Vanguard Small-Cap Value Index Fund ETF Shares provided moderate returns such as in 2014, 2017, and 2012 where annual returns amounted to 10.55%, 11.79%, and 18.78% 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 VBR would have resulted in a final balance of $26,095. This is a profit of $16,095 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.28%.
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%.
VBR’s CAGR is 10.76 percentage points higher than that of MINT and as a result, would have yielded $14,471 more on a $10,000 investment. Thus, VBR outperformed MINT by 10.76% annually.
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