Skip to content

VTIP vs. MINT: What’s The Difference?

The Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VTIP is a Vanguard Inflation-Protected Bond fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VTIP and MINT? And which fund is better?

The expense ratio of VTIP is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%). VTIP is mostly comprised of AAA bonds and MINT has a high exposure to Others bond. Overall, VTIP has provided higher returns than MINT over the past 7 years.

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

TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

VTIPMINT
NameVanguard Short-Term Inflation-Protected Securities Index Fund ETF SharesPIMCO Enhanced Short Maturity Active Exchange-Traded Fund
CategoryInflation-Protected BondUltrashort Bond
IssuerVanguardPIMCO
AUM50.67B14.02B
Avg. Return1.79%1.52%
Div. Yield1.35%0.56%
Expense Ratio0.05%0.36%

The Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP) is a Inflation-Protected Bond fund that is issued by Vanguard. It currently has 50.67B total assets under management and has yielded an average annual return of 1.79% over the past 10 years. The fund has a dividend yield of 1.35% with an expense ratio of 0.05%.

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%.

VTIP’s dividend yield is 0.79% higher than that of MINT (1.35% vs. 0.56%). Also, VTIP yielded on average 0.27% more per year over the past decade (1.79% vs. 1.52%). The expense ratio of VTIP is 0.31 percentage points lower than MINT’s (0.05% vs. 0.36%).

FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).

Fund Composition

Holdings

VTIP - Holdings

VTIP Bond SectorsWeight
AAA99.87%
Others0.13%
Below B0.0%
B0.0%
BB0.0%
BBB0.0%
A0.0%
AA0.0%
US Government0.0%

VTIP’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 99.87%, 0.13%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.

MINT - Holdings

MINT Bond SectorsWeight
Others0.0%
Below B0.0%
B0.0%
BB0.0%
BBB0.0%
A0.0%
AA0.0%
AAA0.0%
US Government0.0%

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.

NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).

Risk Analysis

VTIPMINT
Mean Return00.12
R-squared04.7
Std. Deviation01.08
Alpha00.62
Beta00.08
Sharpe Ratio00.78
Treynor Ratio010.8

The Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP) has a Mean Return of 0 with a Beta of 0 and a Alpha of 0. Its R-squared is 0 while VTIP’s Standard Deviation is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Treynor Ratio of 0.

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

VTIP’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, VTIP is slightly less volatile than MINT. The Alpha and Beta of VTIP are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

VTIP vs. MINT - Annual Returns

YearVTIPMINT
20204.97%1.63%
20194.83%3.3%
20180.54%1.72%
20170.82%1.9%
20162.71%1.99%
2015-0.15%0.52%
2014-1.17%0.53%
2013-1.55%0.72%
20120.0%2.48%
20110.0%0.42%
20100.0%1.72%

VTIP had its best year in 2020 with an annual return of 4.97%. VTIP’s worst year over the past decade yielded -1.55% and occurred in 2013. In most years the Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares provided moderate returns such as in 2011, 2010, and 2018 where annual returns amounted to 0.0%, 0.0%, and 0.54% 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

VTIP vs. MINT - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VTIP$10,000$11,3051.79%
MINT$10,000$11,2151.52%

A $10,000 investment in VTIP would have resulted in a final balance of $11,305. This is a profit of $1,305 over 7 years and amounts to a compound annual growth rate (CAGR) of 1.79%.

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%.

VTIP’s CAGR is 0.27 percentage points higher than that of MINT and as a result, would have yielded $90 more on a $10,000 investment. Thus, VTIP outperformed MINT by 0.27% annually.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published. Required fields are marked *