The Vanguard Mid-Cap Index Fund ETF Shares (VO) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VO is a Vanguard Mid-Cap Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VO and MINT? And which fund is better?
The expense ratio of VO is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%). VO also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VO has provided higher returns than MINT over the past ten years.
In this article, we’ll compare VO vs. MINT. We’ll look at annual returns and risk metrics, as well as at their industry exposure and holdings. Moreover, I’ll also discuss VO’s and MINT’s portfolio growth, performance, and fund composition and examine how these affect their overall returns.
|Name||Vanguard Mid-Cap Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Mid-Cap Blend||Ultrashort Bond|
The Vanguard Mid-Cap Index Fund ETF Shares (VO) is a Mid-Cap Blend fund that is issued by Vanguard. It currently has 154.08B total assets under management and has yielded an average annual return of 14.34% over the past 10 years. The fund has a dividend yield of 1.23% with an expense ratio of 0.04%.
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%.
VO’s dividend yield is 0.67% higher than that of MINT (1.23% vs. 0.56%). Also, VO yielded on average 12.81% more per year over the past decade (14.34% vs. 1.52%). The expense ratio of VO is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%).
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|IDEXX Laboratories Inc||0.78%|
|Marvell Technology Inc||0.68%|
|IQVIA Holdings Inc||0.68%|
|Chipotle Mexican Grill Inc||0.63%|
|Veeva Systems Inc Class A||0.62%|
|Digital Realty Trust Inc||0.62%|
|Carrier Global Corp Ordinary Shares||0.61%|
VO’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Marvell Technology Inc, IQVIA Holdings Inc, and Chipotle Mexican Grill Inc at 0.78%, 0.75%, 0.68%, 0.68%, and 0.63%.
Veeva Systems Inc Class A (0.62%), Digital Realty Trust Inc (0.62%), and Centene Corp (0.62%) have a slightly smaller but still significant weight. Aptiv PLC and Carrier Global Corp Ordinary Shares are also represented in the VO’s holdings at 0.62% and 0.61%.
|MINT Bond Sectors||Weight|
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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The Vanguard Mid-Cap Index Fund ETF Shares (VO) has a Beta of 1.11 with a Sharpe Ratio of 0.83 and a Treynor Ratio of 11.32. Its Mean Return is 1.14 while VO’s Alpha is -2.71. Furthermore, the fund has a R-squared of 92.22 and a Standard Deviation of 15.65.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Treynor Ratio of 10.8 with a Standard Deviation of 1.08 and a Alpha of 0.62. Its Beta is 0.08 while MINT’s R-squared is 4.7. Furthermore, the fund has a Mean Return of 0.12 and a Sharpe Ratio of 0.78.
VO’s Mean Return is 1.02 points higher than that of MINT and its R-squared is 87.52 points higher. With a Standard Deviation of 15.65, VO is slightly more volatile than MINT. The Alpha and Beta of VO are 3.33 points lower and 1.03 points higher than MINT’s Alpha and Beta.
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VO had its best year in 2013 with an annual return of 35.15%. VO’s worst year over the past decade yielded -9.21% and occurred in 2018. In most years the Vanguard Mid-Cap Index Fund ETF Shares provided moderate returns such as in 2014, 2012, and 2020 where annual returns amounted to 13.76%, 15.98%, and 18.22% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in VO would have resulted in a final balance of $32,177. This is a profit of $22,177 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.34%.
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%.
VO’s CAGR is 12.81 percentage points higher than that of MINT and as a result, would have yielded $20,553 more on a $10,000 investment. Thus, VO outperformed MINT by 12.81% annually.
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