The Vanguard Total World Stock Index Fund ETF Shares (VT) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VT is a Vanguard N/A fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VT and MINT? And which fund is better?
The expense ratio of VT is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%). VT also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VT has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare VT vs. MINT. We’ll look at holdings and fund composition, as well as at their annual returns and portfolio growth. Moreover, I’ll also discuss VT’s and MINT’s industry exposure, risk metrics, and performance and examine how these affect their overall returns.
Summary
| VT | MINT | |
| Name | Vanguard Total World Stock Index Fund ETF Shares | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | N/A | Ultrashort Bond |
| Issuer | Vanguard | PIMCO |
| AUM | 30.44B | 14.02B |
| Avg. Return | 10.42% | 1.52% |
| Div. Yield | 1.65% | 0.56% |
| Expense Ratio | 0.08% | 0.36% |
The Vanguard Total World Stock Index Fund ETF Shares (VT) is a N/A fund that is issued by Vanguard. It currently has 30.44B total assets under management and has yielded an average annual return of 10.42% over the past 10 years. The fund has a dividend yield of 1.65% with an expense ratio of 0.08%.
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%.
VT’s dividend yield is 1.09% higher than that of MINT (1.65% vs. 0.56%). Also, VT yielded on average 8.89% more per year over the past decade (10.42% vs. 1.52%). The expense ratio of VT is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%).
Fund Composition
Holdings
| VT Holdings | Weight |
| Apple Inc | 2.85% |
| Microsoft Corp | 2.71% |
| Amazon.com Inc | 1.98% |
| Facebook Inc Class A | 1.1% |
| Alphabet Inc Class A | 0.97% |
| Alphabet Inc Class C | 0.95% |
| Tesla Inc | 0.7% |
| NVIDIA Corp | 0.64% |
| JPMorgan Chase & Co | 0.62% |
| Tencent Holdings Ltd | 0.6% |
VT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 2.85%, 2.71%, 1.98%, 1.1%, and 0.97%.
Alphabet Inc Class C (0.95%), Tesla Inc (0.7%), and NVIDIA Corp (0.64%) have a slightly smaller but still significant weight. JPMorgan Chase & Co and Tencent Holdings Ltd are also represented in the VT’s holdings at 0.62% and 0.6%.
| 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
| VT | MINT | |
| Mean Return | 0.9 | 0.12 |
| R-squared | 99.35 | 4.7 |
| Std. Deviation | 14.19 | 1.08 |
| Alpha | 0.2 | 0.62 |
| Beta | 1.01 | 0.08 |
| Sharpe Ratio | 0.71 | 0.78 |
| Treynor Ratio | 9.5 | 10.8 |
The Vanguard Total World Stock Index Fund ETF Shares (VT) has a Sharpe Ratio of 0.71 with a Alpha of 0.2 and a Standard Deviation of 14.19. Its Treynor Ratio is 9.5 while VT’s Mean Return is 0.9. Furthermore, the fund has a R-squared of 99.35 and a Beta of 1.01.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Sharpe Ratio of 0.78 with a Standard Deviation of 1.08 and a Treynor Ratio of 10.8. Its Alpha is 0.62 while MINT’s Mean Return is 0.12. Furthermore, the fund has a Beta of 0.08 and a R-squared of 4.7.
VT’s Mean Return is 0.78 points higher than that of MINT and its R-squared is 94.65 points higher. With a Standard Deviation of 14.19, VT is slightly more volatile than MINT. The Alpha and Beta of VT are 0.42 points lower and 0.93 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | VT | MINT |
| 2020 | 16.74% | 1.63% |
| 2019 | 26.8% | 3.3% |
| 2018 | -9.67% | 1.72% |
| 2017 | 24.19% | 1.9% |
| 2016 | 8.77% | 1.99% |
| 2015 | -1.88% | 0.52% |
| 2014 | 3.97% | 0.53% |
| 2013 | 22.98% | 0.72% |
| 2012 | 17.33% | 2.48% |
| 2011 | -7.71% | 0.42% |
| 2010 | 13.05% | 1.72% |
VT had its best year in 2019 with an annual return of 26.8%. VT’s worst year over the past decade yielded -9.67% and occurred in 2018. In most years the Vanguard Total World Stock Index Fund ETF Shares provided moderate returns such as in 2016, 2010, and 2020 where annual returns amounted to 8.77%, 13.05%, and 16.74% 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 |
| VT | $10,000 | $24,537 | 10.42% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in VT would have resulted in a final balance of $24,537. This is a profit of $14,537 over 10 years and amounts to a compound annual growth rate (CAGR) of 10.42%.
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%.
VT’s CAGR is 8.89 percentage points higher than that of MINT and as a result, would have yielded $12,913 more on a $10,000 investment. Thus, VT outperformed MINT by 8.89% annually.
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