VGT vs. MINT: What’s The Difference?

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

The expense ratio of VGT is 0.26 percentage points lower than MINT’s (0.1% vs. 0.36%). VGT also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VGT has provided higher returns than MINT over the past ten years.

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

Summary

VGT MINT
Name Vanguard Information Technology Index Fund ETF Shares PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Technology Ultrashort Bond
Issuer Vanguard PIMCO
AUM 54.13B 14.02B
Avg. Return 20.84% 1.52%
Div. Yield 0.66% 0.56%
Expense Ratio 0.1% 0.36%

The Vanguard Information Technology Index Fund ETF Shares (VGT) is a Technology fund that is issued by Vanguard. It currently has 54.13B total assets under management and has yielded an average annual return of 20.84% over the past 10 years. The fund has a dividend yield of 0.66% with an expense ratio of 0.1%.

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%.

VGT’s dividend yield is 0.10% higher than that of MINT (0.66% vs. 0.56%). Also, VGT yielded on average 19.31% more per year over the past decade (20.84% vs. 1.52%). The expense ratio of VGT is 0.26 percentage points lower than MINT’s (0.1% vs. 0.36%).

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Fund Composition

Holdings

VGT - Holdings

VGT Holdings Weight
Apple Inc 19.58%
Microsoft Corp 16.53%
NVIDIA Corp 4.22%
Visa Inc Class A 3.16%
PayPal Holdings Inc 2.76%
Mastercard Inc Class A 2.76%
Adobe Inc 2.39%
Intel Corp 1.94%
Salesforce.com Inc 1.91%
Cisco Systems Inc 1.9%

VGT’s Top Holdings are Apple Inc, Microsoft Corp, NVIDIA Corp, Visa Inc Class A, and PayPal Holdings Inc at 19.58%, 16.53%, 4.22%, 3.16%, and 2.76%.

Mastercard Inc Class A (2.76%), Adobe Inc (2.39%), and Intel Corp (1.94%) have a slightly smaller but still significant weight. Salesforce.com Inc and Cisco Systems Inc are also represented in the VGT’s holdings at 1.91% and 1.9%.

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.

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Risk Analysis

VGT MINT
Mean Return 1.76 0.12
R-squared 74.84 4.7
Std. Deviation 16.61 1.08
Alpha 10.41 0.62
Beta 1.02 0.08
Sharpe Ratio 1.23 0.78
Treynor Ratio 20.55 10.8

The Vanguard Information Technology Index Fund ETF Shares (VGT) has a Mean Return of 1.76 with a Beta of 1.02 and a Treynor Ratio of 20.55. Its Sharpe Ratio is 1.23 while VGT’s Alpha is 10.41. Furthermore, the fund has a Standard Deviation of 16.61 and a R-squared of 74.84.

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

VGT’s Mean Return is 1.64 points higher than that of MINT and its R-squared is 70.14 points higher. With a Standard Deviation of 16.61, VGT is slightly more volatile than MINT. The Alpha and Beta of VGT are 9.79 points higher and 0.94 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

VGT vs. MINT - Annual Returns

Year VGT MINT
2020 45.94% 1.63%
2019 48.68% 3.3%
2018 2.52% 1.72%
2017 37.07% 1.9%
2016 13.73% 1.99%
2015 5.02% 0.52%
2014 18.01% 0.53%
2013 30.91% 0.72%
2012 14.05% 2.48%
2011 0.52% 0.42%
2010 12.74% 1.72%

VGT had its best year in 2019 with an annual return of 48.68%. VGT’s worst year over the past decade yielded 0.52% and occurred in 2011. In most years the Vanguard Information Technology Index Fund ETF Shares provided moderate returns such as in 2016, 2012, and 2014 where annual returns amounted to 13.73%, 14.05%, and 18.01% 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

VGT vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VGT $10,000 $64,500 20.84%
MINT $10,000 $11,624 1.52%

A $10,000 investment in VGT would have resulted in a final balance of $64,500. This is a profit of $54,500 over 10 years and amounts to a compound annual growth rate (CAGR) of 20.84%.

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%.

VGT’s CAGR is 19.31 percentage points higher than that of MINT and as a result, would have yielded $52,876 more on a $10,000 investment. Thus, VGT outperformed MINT by 19.31% annually.


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