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.
|Name||Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Inflation-Protected Bond||Ultrashort Bond|
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%).
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|VTIP Bond Sectors||Weight|
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 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 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.
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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.
|Fund||Initial Balance||Final Balance||CAGR|
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.
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