VCIT vs. MINT: What’s The Difference?

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

The expense ratio of VCIT is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%). VCIT is mostly comprised of BBB bonds and MINT has a high exposure to Others bond. Overall, VCIT has provided higher returns than MINT over the past ten years.

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

Summary

VCIT MINT
Name Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Corporate Bond Ultrashort Bond
Issuer Vanguard PIMCO
AUM 48.39B 14.02B
Avg. Return 5.84% 1.52%
Div. Yield 2.33% 0.56%
Expense Ratio 0.05% 0.36%

The Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares (VCIT) is a Corporate Bond fund that is issued by Vanguard. It currently has 48.39B total assets under management and has yielded an average annual return of 5.84% over the past 10 years. The fund has a dividend yield of 2.33% 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%.

VCIT’s dividend yield is 1.77% higher than that of MINT (2.33% vs. 0.56%). Also, VCIT yielded on average 4.32% more per year over the past decade (5.84% vs. 1.52%). The expense ratio of VCIT is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%).

Fund Composition

Holdings

VCIT - Holdings

VCIT Bond Sectors Weight
BBB 55.28%
A 37.85%
AA 5.22%
AAA 1.57%
Below B 0.08%
Others 0.0%
B 0.0%
BB 0.0%
US Government 0.0%

VCIT’s Top Bond Sectors are ratings of BBB, A, AA, AAA, and Below B at 55.28%, 37.85%, 5.22%, 1.57%, and 0.08%. The fund is less weighted towards Others (0.0%), B (0.0%), and BB (0.0%) rated bonds.

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.

Risk Analysis

VCIT MINT
Mean Return 0.44 0.12
R-squared 63.18 4.7
Std. Deviation 5.08 1.08
Alpha 0.89 0.62
Beta 1.35 0.08
Sharpe Ratio 0.91 0.78
Treynor Ratio 3.43 10.8

The Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares (VCIT) has a Standard Deviation of 5.08 with a Beta of 1.35 and a Treynor Ratio of 3.43. Its Mean Return is 0.44 while VCIT’s Sharpe Ratio is 0.91. Furthermore, the fund has a Alpha of 0.89 and a R-squared of 63.18.

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

VCIT’s Mean Return is 0.32 points higher than that of MINT and its R-squared is 58.48 points higher. With a Standard Deviation of 5.08, VCIT is slightly more volatile than MINT. The Alpha and Beta of VCIT are 0.27 points higher and 1.27 points higher than MINT’s Alpha and Beta.

Performance

Annual Returns

VCIT vs. MINT - Annual Returns

Year VCIT MINT
2020 9.55% 1.63%
2019 13.97% 3.3%
2018 -1.75% 1.72%
2017 5.5% 1.9%
2016 5.3% 1.99%
2015 0.88% 0.52%
2014 7.47% 0.53%
2013 -1.8% 0.72%
2012 11.36% 2.48%
2011 7.94% 0.42%
2010 10.65% 1.72%

VCIT had its best year in 2019 with an annual return of 13.97%. VCIT’s worst year over the past decade yielded -1.8% and occurred in 2013. In most years the Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares provided moderate returns such as in 2017, 2014, and 2011 where annual returns amounted to 5.5%, 7.47%, and 7.94% 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

VCIT vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VCIT $10,000 $17,439 5.84%
MINT $10,000 $11,624 1.52%

A $10,000 investment in VCIT would have resulted in a final balance of $17,439. This is a profit of $7,439 over 10 years and amounts to a compound annual growth rate (CAGR) of 5.84%.

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%.

VCIT’s CAGR is 4.32 percentage points higher than that of MINT and as a result, would have yielded $5,815 more on a $10,000 investment. Thus, VCIT outperformed MINT by 4.32% annually.


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