The Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VCSH is a Vanguard Short-Term Bond fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VCSH and MINT? And which fund is better?
The expense ratio of VCSH is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%). VCSH is mostly comprised of BBB bonds and MINT has a high exposure to Others bond. Overall, VCSH has provided higher returns than MINT over the past ten years.
In this article, we’ll compare VCSH vs. MINT. We’ll look at holdings and industry exposure, as well as at their performance and portfolio growth. Moreover, I’ll also discuss VCSH’s and MINT’s annual returns, risk metrics, and fund composition and examine how these affect their overall returns.
Summary
| VCSH | MINT | |
| Name | Vanguard Short-Term Corporate Bond Index Fund ETF Shares | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Short-Term Bond | Ultrashort Bond |
| Issuer | Vanguard | PIMCO |
| AUM | 47.88B | 14.02B |
| Avg. Return | 3.12% | 1.52% |
| Div. Yield | 1.89% | 0.56% |
| Expense Ratio | 0.05% | 0.36% |
The Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) is a Short-Term Bond fund that is issued by Vanguard. It currently has 47.88B total assets under management and has yielded an average annual return of 3.12% over the past 10 years. The fund has a dividend yield of 1.89% 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%.
VCSH’s dividend yield is 1.33% higher than that of MINT (1.89% vs. 0.56%). Also, VCSH yielded on average 1.60% more per year over the past decade (3.12% vs. 1.52%). The expense ratio of VCSH is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%).
Fund Composition
Holdings
| VCSH Bond Sectors | Weight |
| BBB | 47.49% |
| A | 43.06% |
| AA | 8.45% |
| AAA | 0.95% |
| Below B | 0.03% |
| Others | 0.02% |
| B | 0.0% |
| BB | 0.0% |
| US Government | 0.0% |
VCSH’s Top Bond Sectors are ratings of BBB, A, AA, AAA, and Below B at 47.49%, 43.06%, 8.45%, 0.95%, and 0.03%. The fund is less weighted towards Others (0.02%), B (0.0%), and BB (0.0%) rated bonds.
| 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
| VCSH | MINT | |
| Mean Return | 0.24 | 0.12 |
| R-squared | 37.53 | 4.7 |
| Std. Deviation | 2.34 | 1.08 |
| Alpha | 0.93 | 0.62 |
| Beta | 0.48 | 0.08 |
| Sharpe Ratio | 0.97 | 0.78 |
| Treynor Ratio | 4.75 | 10.8 |
The Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) has a Standard Deviation of 2.34 with a Treynor Ratio of 4.75 and a Sharpe Ratio of 0.97. Its Mean Return is 0.24 while VCSH’s Alpha is 0.93. Furthermore, the fund has a R-squared of 37.53 and a Beta of 0.48.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Standard Deviation of 1.08 with a Sharpe Ratio of 0.78 and a Mean Return of 0.12. Its Alpha is 0.62 while MINT’s Treynor Ratio is 10.8. Furthermore, the fund has a Beta of 0.08 and a R-squared of 4.7.
VCSH’s Mean Return is 0.12 points higher than that of MINT and its R-squared is 32.83 points higher. With a Standard Deviation of 2.34, VCSH is slightly more volatile than MINT. The Alpha and Beta of VCSH are 0.31 points higher and 0.40 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | VCSH | MINT |
| 2020 | 5.08% | 1.63% |
| 2019 | 6.85% | 3.3% |
| 2018 | 0.91% | 1.72% |
| 2017 | 2.45% | 1.9% |
| 2016 | 2.63% | 1.99% |
| 2015 | 1.25% | 0.52% |
| 2014 | 1.96% | 0.53% |
| 2013 | 1.37% | 0.72% |
| 2012 | 5.74% | 2.48% |
| 2011 | 2.94% | 0.42% |
| 2010 | 5.51% | 1.72% |
VCSH had its best year in 2019 with an annual return of 6.85%. VCSH’s worst year over the past decade yielded 0.91% and occurred in 2018. In most years the Vanguard Short-Term Corporate Bond Index Fund ETF Shares provided moderate returns such as in 2017, 2016, and 2011 where annual returns amounted to 2.45%, 2.63%, and 2.94% 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
| Fund | Initial Balance | Final Balance | CAGR |
| VCSH | $10,000 | $13,569 | 3.12% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in VCSH would have resulted in a final balance of $13,569. This is a profit of $3,569 over 10 years and amounts to a compound annual growth rate (CAGR) of 3.12%.
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%.
VCSH’s CAGR is 1.60 percentage points higher than that of MINT and as a result, would have yielded $1,945 more on a $10,000 investment. Thus, VCSH outperformed MINT by 1.60% annually.
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