The Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VEU is a Vanguard Foreign Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VEU and MINT? And which fund is better?
The expense ratio of VEU is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%). VEU also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, VEU has provided higher returns than MINT over the past ten years.
In this article, we’ll compare VEU vs. MINT. We’ll look at fund composition and risk metrics, as well as at their annual returns and portfolio growth. Moreover, I’ll also discuss VEU’s and MINT’s holdings, industry exposure, and performance and examine how these affect their overall returns.
Summary
| VEU | MINT | |
| Name | Vanguard FTSE All-World ex-US Index Fund ETF Shares | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Foreign Large Blend | Ultrashort Bond |
| Issuer | Vanguard | PIMCO |
| AUM | 53.64B | 14.02B |
| Avg. Return | 6.64% | 1.52% |
| Div. Yield | 2.31% | 0.56% |
| Expense Ratio | 0.08% | 0.36% |
The Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 53.64B total assets under management and has yielded an average annual return of 6.64% over the past 10 years. The fund has a dividend yield of 2.31% with an expense ratio of 0.08%.
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%.
VEU’s dividend yield is 1.75% higher than that of MINT (2.31% vs. 0.56%). Also, VEU yielded on average 5.12% more per year over the past decade (6.64% vs. 1.52%). The expense ratio of VEU is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%).
Fund Composition
Holdings
| VEU Holdings | Weight |
| Tencent Holdings Ltd | 1.57% |
| Alibaba Group Holding Ltd Ordinary Shares | 1.4% |
| Nestle SA | 1.22% |
| Taiwan Semiconductor Manufacturing Co Ltd | 0.98% |
| ASML Holding NV | 0.95% |
| Taiwan Semiconductor Manufacturing Co Ltd ADR | 0.91% |
| Roche Holding AG | 0.91% |
| Toyota Motor Corp | 0.75% |
| LVMH Moet Hennessy Louis Vuitton SE | 0.68% |
| Novartis AG | 0.67% |
VEU’s Top Holdings are Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, Taiwan Semiconductor Manufacturing Co Ltd, and ASML Holding NV at 1.57%, 1.4%, 1.22%, 0.98%, and 0.95%.
Taiwan Semiconductor Manufacturing Co Ltd ADR (0.91%), Roche Holding AG (0.91%), and Toyota Motor Corp (0.75%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VEU’s holdings at 0.68% and 0.67%.
| 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
| VEU | MINT | |
| Mean Return | 0.56 | 0.12 |
| R-squared | 98.44 | 4.7 |
| Std. Deviation | 15.08 | 1.08 |
| Alpha | 0.28 | 0.62 |
| Beta | 0.99 | 0.08 |
| Sharpe Ratio | 0.4 | 0.78 |
| Treynor Ratio | 5.12 | 10.8 |
The Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU) has a Standard Deviation of 15.08 with a Alpha of 0.28 and a Sharpe Ratio of 0.4. Its Mean Return is 0.56 while VEU’s Beta is 0.99. Furthermore, the fund has a Treynor Ratio of 5.12 and a R-squared of 98.44.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Standard Deviation of 1.08 with a Treynor Ratio of 10.8 and a Beta of 0.08. 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 R-squared of 4.7.
VEU’s Mean Return is 0.44 points higher than that of MINT and its R-squared is 93.74 points higher. With a Standard Deviation of 15.08, VEU is slightly more volatile than MINT. The Alpha and Beta of VEU are 0.34 points lower and 0.91 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | VEU | MINT |
| 2020 | 11.39% | 1.63% |
| 2019 | 21.63% | 3.3% |
| 2018 | -13.97% | 1.72% |
| 2017 | 27.27% | 1.9% |
| 2016 | 4.77% | 1.99% |
| 2015 | -4.67% | 0.52% |
| 2014 | -4.05% | 0.53% |
| 2013 | 14.5% | 0.72% |
| 2012 | 18.55% | 2.48% |
| 2011 | -14.25% | 0.42% |
| 2010 | 11.85% | 1.72% |
VEU had its best year in 2017 with an annual return of 27.27%. VEU’s worst year over the past decade yielded -14.25% and occurred in 2011. In most years the Vanguard FTSE All-World ex-US Index Fund ETF Shares provided moderate returns such as in 2016, 2020, and 2010 where annual returns amounted to 4.77%, 11.39%, and 11.85% 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 |
| VEU | $10,000 | $16,546 | 6.64% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in VEU would have resulted in a final balance of $16,546. This is a profit of $6,546 over 10 years and amounts to a compound annual growth rate (CAGR) of 6.64%.
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%.
VEU’s CAGR is 5.12 percentage points higher than that of MINT and as a result, would have yielded $4,922 more on a $10,000 investment. Thus, VEU outperformed MINT by 5.12% annually.
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