The Vanguard S&P 500 ETF (VOO) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VOO is a Vanguard Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VOO and MINT? And which fund is better?
The expense ratio of VOO is 0.33 percentage points lower than MINT’s (0.03% vs. 0.36%). VOO also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VOO has provided higher returns than MINT over the past ten years.
In this article, we’ll compare VOO vs. MINT. We’ll look at industry exposure and fund composition, as well as at their risk metrics and holdings. Moreover, I’ll also discuss VOO’s and MINT’s performance, portfolio growth, and annual returns and examine how these affect their overall returns.
|Name||Vanguard S&P 500 ETF||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Large Blend||Ultrashort Bond|
The Vanguard S&P 500 ETF (VOO) is a Large Blend fund that is issued by Vanguard. It currently has 753.41B total assets under management and has yielded an average annual return of 14.45% over the past 10 years. The fund has a dividend yield of 1.34% with an expense ratio of 0.03%.
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%.
VOO’s dividend yield is 0.78% higher than that of MINT (1.34% vs. 0.56%). Also, VOO yielded on average 12.93% more per year over the past decade (14.45% vs. 1.52%). The expense ratio of VOO is 0.33 percentage points lower than MINT’s (0.03% vs. 0.36%).
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|Facebook Inc Class A||2.29%|
|Alphabet Inc Class A||2.02%|
|Alphabet Inc Class C||1.97%|
|Berkshire Hathaway Inc Class B||1.44%|
|JPMorgan Chase & Co||1.3%|
VOO’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.92%, 5.62%, 4.06%, 2.29%, and 2.02%.
Alphabet Inc Class C (1.97%), Tesla Inc (1.44%), and Berkshire Hathaway Inc Class B (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VOO’s holdings at 1.37% and 1.3%.
|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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VOO had its best year in 2013 with an annual return of 32.33%. VOO’s worst year over the past decade yielded -4.42% and occurred in 2018. In most years the Vanguard S&P 500 ETF provided moderate returns such as in 2016, 2014, and 2012 where annual returns amounted to 11.93%, 13.63%, and 15.98% 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 VOO would have resulted in a final balance of $36,575. This is a profit of $26,575 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.45%.
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%.
VOO’s CAGR is 12.93 percentage points higher than that of MINT and as a result, would have yielded $24,951 more on a $10,000 investment. Thus, VOO outperformed MINT by 12.93% annually.
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