VLUE vs. MINT: What’s The Difference?

The iShares MSCI USA Value Factor ETF (VLUE) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VLUE is a iShares Large Value fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VLUE and MINT? And which fund is better?

The expense ratio of VLUE is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%). VLUE also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VLUE has provided higher returns than MINT over the past 7 years.

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

Summary

VLUE MINT
Name iShares MSCI USA Value Factor ETF PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Value Ultrashort Bond
Issuer iShares PIMCO
AUM 15.95B 14.02B
Avg. Return 8.91% 1.52%
Div. Yield 1.89% 0.56%
Expense Ratio 0.15% 0.36%

The iShares MSCI USA Value Factor ETF (VLUE) is a Large Value fund that is issued by iShares. It currently has 15.95B total assets under management and has yielded an average annual return of 8.91% over the past 10 years. The fund has a dividend yield of 1.89% with an expense ratio of 0.15%.

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%.

VLUE’s dividend yield is 1.33% higher than that of MINT (1.89% vs. 0.56%). Also, VLUE yielded on average 7.39% more per year over the past decade (8.91% vs. 1.52%). The expense ratio of VLUE is 0.21 percentage points lower than MINT’s (0.15% vs. 0.36%).

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Fund Composition

Holdings

VLUE - Holdings

VLUE Holdings Weight
AT&T Inc 7.13%
Intel Corp 6.14%
General Motors Co 3.19%
Micron Technology Inc 3.14%
Cisco Systems Inc 3.05%
International Business Machines Corp 2.76%
Target Corp 2.38%
Citigroup Inc 2.32%
Ford Motor Co 2.23%
Pfizer Inc 2.17%

VLUE’s Top Holdings are AT&T Inc, Intel Corp, General Motors Co, Micron Technology Inc, and Cisco Systems Inc at 7.13%, 6.14%, 3.19%, 3.14%, and 3.05%.

International Business Machines Corp (2.76%), Target Corp (2.38%), and Citigroup Inc (2.32%) have a slightly smaller but still significant weight. Ford Motor Co and Pfizer Inc are also represented in the VLUE’s holdings at 2.23% and 2.17%.

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

VLUE MINT
Mean Return 0 0.12
R-squared 0 4.7
Std. Deviation 0 1.08
Alpha 0 0.62
Beta 0 0.08
Sharpe Ratio 0 0.78
Treynor Ratio 0 10.8

The iShares MSCI USA Value Factor ETF (VLUE) has a R-squared of 0 with a Alpha of 0 and a Beta of 0. Its Sharpe Ratio is 0 while VLUE’s Standard Deviation is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Mean Return of 0.

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

VLUE’s Mean Return is 0.12 points lower than that of MINT and its R-squared is 4.70 points lower. With a Standard Deviation of 0, VLUE is slightly less volatile than MINT. The Alpha and Beta of VLUE are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.

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Performance

Annual Returns

VLUE vs. MINT - Annual Returns

Year VLUE MINT
2020 -0.32% 1.63%
2019 27.47% 3.3%
2018 -11.18% 1.72%
2017 21.97% 1.9%
2016 15.68% 1.99%
2015 -3.54% 0.52%
2014 12.29% 0.53%
2013 0.0% 0.72%
2012 0.0% 2.48%
2011 0.0% 0.42%
2010 0.0% 1.72%

VLUE had its best year in 2019 with an annual return of 27.47%. VLUE’s worst year over the past decade yielded -11.18% and occurred in 2018. In most years the iShares MSCI USA Value Factor ETF provided moderate returns such as in 2012, 2011, and 2010 where annual returns amounted to 0.0%, 0.0%, and 0.0% 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

VLUE vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VLUE $10,000 $17,247 8.91%
MINT $10,000 $11,215 1.52%

A $10,000 investment in VLUE would have resulted in a final balance of $17,247. This is a profit of $7,247 over 7 years and amounts to a compound annual growth rate (CAGR) of 8.91%.

With a $10,000 investment in MINT, the end total would have been $11,215. This equates to a $1,215 profit over 7 years and a compound annual growth rate (CAGR) of 1.52%.

VLUE’s CAGR is 7.39 percentage points higher than that of MINT and as a result, would have yielded $6,032 more on a $10,000 investment. Thus, VLUE outperformed MINT by 7.39% annually.


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