VEA vs. MINT: What’s The Difference?

The Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VEA is a Vanguard Foreign Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VEA and MINT? And which fund is better?

The expense ratio of VEA is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%). VEA also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, VEA has provided higher returns than MINT over the past ten years.

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

Summary

VEA MINT
Name Vanguard FTSE Developed Markets Index Fund ETF Shares PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Foreign Large Blend Ultrashort Bond
Issuer Vanguard PIMCO
AUM 157.48B 14.02B
Avg. Return 7.05% 1.52%
Div. Yield 2.49% 0.56%
Expense Ratio 0.05% 0.36%

The Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 157.48B total assets under management and has yielded an average annual return of 7.05% over the past 10 years. The fund has a dividend yield of 2.49% 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%.

VEA’s dividend yield is 1.93% higher than that of MINT (2.49% vs. 0.56%). Also, VEA yielded on average 5.53% more per year over the past decade (7.05% vs. 1.52%). The expense ratio of VEA is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%).

Fund Composition

Holdings

VEA - Holdings

VEA Holdings Weight
Nestle SA 1.5%
Samsung Electronics Co Ltd 1.4%
ASML Holding NV 1.16%
Roche Holding AG 1.1%
Toyota Motor Corp 0.92%
LVMH Moet Hennessy Louis Vuitton SE 0.84%
Novartis AG 0.82%
Shopify Inc A 0.7%
AstraZeneca PLC 0.67%
SAP SE 0.66%

VEA’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.5%, 1.4%, 1.16%, 1.1%, and 0.92%.

LVMH Moet Hennessy Louis Vuitton SE (0.84%), Novartis AG (0.82%), and Shopify Inc A (0.7%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the VEA’s holdings at 0.67% and 0.66%.

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.

Performance

Annual Returns

VEA vs. MINT - Annual Returns

Year VEA MINT
2020 10.29% 1.63%
2019 22.08% 3.3%
2018 -14.47% 1.72%
2017 26.44% 1.9%
2016 2.51% 1.99%
2015 -0.21% 0.52%
2014 -5.71% 0.53%
2013 22.12% 0.72%
2012 18.6% 2.48%
2011 -12.57% 0.42%
2010 8.47% 1.72%

VEA had its best year in 2017 with an annual return of 26.44%. VEA’s worst year over the past decade yielded -14.47% and occurred in 2018. In most years the Vanguard FTSE Developed Markets Index Fund ETF Shares provided moderate returns such as in 2016, 2010, and 2020 where annual returns amounted to 2.51%, 8.47%, and 10.29% 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

VEA vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VEA $10,000 $17,784 7.05%
MINT $10,000 $11,624 1.52%

A $10,000 investment in VEA would have resulted in a final balance of $17,784. This is a profit of $7,784 over 10 years and amounts to a compound annual growth rate (CAGR) of 7.05%.

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%.

VEA’s CAGR is 5.53 percentage points higher than that of MINT and as a result, would have yielded $6,160 more on a $10,000 investment. Thus, VEA outperformed MINT by 5.53% annually.


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