The Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VIG is a Vanguard Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VIG and MINT? And which fund is better?
The expense ratio of VIG is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%). VIG also has a high exposure to the industrials sector while MINT is mostly comprised of Others bonds. Overall, VIG has provided higher returns than MINT over the past ten years.
In this article, we’ll compare VIG vs. MINT. We’ll look at portfolio growth and risk metrics, as well as at their performance and holdings. Moreover, I’ll also discuss VIG’s and MINT’s annual returns, fund composition, and industry exposure and examine how these affect their overall returns.
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Summary
| VIG | MINT | |
| NameVanguard Dividend Appreciation Index Fund ETF SharesPIMCO Enhanced Short Maturity Active Exchange-Traded Fund | ||
| Category | Large Blend | Ultrashort Bond |
| Issuer | Vanguard | PIMCO |
| AUM | 71.92B | 14.02B |
| Avg. Return | 13.35% | 1.52% |
| Div. Yield | 1.56% | 0.56% |
| Expense Ratio | 0.06% | 0.36% |
The Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is a Large Blend fund that is issued by Vanguard. It currently has 71.92B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.56% with an expense ratio of 0.06%.
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%.
VIG’s dividend yield is 1.00% higher than that of MINT (1.56% vs. 0.56%). Also, VIG yielded on average 11.82% more per year over the past decade (13.35% vs. 1.52%). The expense ratio of VIG is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%).
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Fund Composition
Holdings
| VIG Holdings | Weight |
| Microsoft Corp | 4.19% |
| JPMorgan Chase & Co | 3.8% |
| Johnson & Johnson | 3.67% |
| Walmart Inc | 3.38% |
| Visa Inc Class A | 3.22% |
| UnitedHealth Group Inc | 3.22% |
| The Home Depot Inc | 2.91% |
| Procter & Gamble Co | 2.82% |
| Comcast Corp Class A | 2.21% |
| Coca-Cola Co | 1.98% |
VIG’s Top Holdings are Microsoft Corp, JPMorgan Chase & Co, Johnson & Johnson, Walmart Inc, and Visa Inc Class A at 4.19%, 3.8%, 3.67%, 3.38%, and 3.22%.
UnitedHealth Group Inc (3.22%), The Home Depot Inc (2.91%), and Procter & Gamble Co (2.82%) have a slightly smaller but still significant weight. Comcast Corp Class A and Coca-Cola Co are also represented in the VIG’s holdings at 2.21% and 1.98%.
| 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
| VIG | MINT | |
| Mean Return | 1.09 | 0.12 |
| R-squared | 92.2 | 4.7 |
| Std. Deviation | 12.25 | 1.08 |
| Alpha | 0.12 | 0.62 |
| Beta | 0.86 | 0.08 |
| Sharpe Ratio | 1.01 | 0.78 |
| Treynor Ratio | 14.33 | 10.8 |
The Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) has a Standard Deviation of 12.25 with a Treynor Ratio of 14.33 and a Alpha of 0.12. Its Mean Return is 1.09 while VIG’s R-squared is 92.2. Furthermore, the fund has a Beta of 0.86 and a Sharpe Ratio of 1.01.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Standard Deviation of 1.08 with a Beta of 0.08 and a Alpha of 0.62. Its Sharpe Ratio is 0.78 while MINT’s R-squared is 4.7. Furthermore, the fund has a Mean Return of 0.12 and a Treynor Ratio of 10.8.
VIG’s Mean Return is 0.97 points higher than that of MINT and its R-squared is 87.50 points higher. With a Standard Deviation of 12.25, VIG is slightly more volatile than MINT. The Alpha and Beta of VIG are 0.50 points lower and 0.78 points higher than MINT’s Alpha and Beta.
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Performance
Annual Returns
| Year | VIG | MINT |
| 2020 | 15.46% | 1.63% |
| 2019 | 29.71% | 3.3% |
| 2018 | -2.02% | 1.72% |
| 2017 | 22.22% | 1.9% |
| 2016 | 11.84% | 1.99% |
| 2015 | -1.95% | 0.52% |
| 2014 | 10.06% | 0.53% |
| 2013 | 28.99% | 0.72% |
| 2012 | 11.61% | 2.48% |
| 2011 | 6.21% | 0.42% |
| 2010 | 14.67% | 1.72% |
VIG had its best year in 2019 with an annual return of 29.71%. VIG’s worst year over the past decade yielded -2.02% and occurred in 2018. In most years the Vanguard Dividend Appreciation Index Fund ETF Shares provided moderate returns such as in 2012, 2016, and 2010 where annual returns amounted to 11.61%, 11.84%, and 14.67% 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 |
| VIG | $10,000 | $33,096 | 13.35% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in VIG would have resulted in a final balance of $33,096. This is a profit of $23,096 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.35%.
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%.
VIG’s CAGR is 11.82 percentage points higher than that of MINT and as a result, would have yielded $21,472 more on a $10,000 investment. Thus, VIG outperformed MINT by 11.82% annually.
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