VUG vs. MINT: What’s The Difference?

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

The expense ratio of VUG is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%). VUG also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VUG has provided higher returns than MINT over the past ten years.

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

Summary

VUG MINT
Name Vanguard Growth Index Fund ETF Shares PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Growth Ultrashort Bond
Issuer Vanguard PIMCO
AUM 165.53B 14.02B
Avg. Return 17.58% 1.52%
Div. Yield 0.57% 0.56%
Expense Ratio 0.04% 0.36%

The Vanguard Growth Index Fund ETF Shares (VUG) is a Large Growth fund that is issued by Vanguard. It currently has 165.53B total assets under management and has yielded an average annual return of 17.58% over the past 10 years. The fund has a dividend yield of 0.57% 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%.

VUG’s dividend yield is 0.01% higher than that of MINT (0.57% vs. 0.56%). Also, VUG yielded on average 16.06% more per year over the past decade (17.58% vs. 1.52%). The expense ratio of VUG is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%).

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Fund Composition

Holdings

VUG - Holdings

VUG Holdings Weight
Apple Inc 10.13%
Microsoft Corp 9.52%
Amazon.com Inc 6.88%
Facebook Inc Class A 3.89%
Alphabet Inc Class A 3.43%
Alphabet Inc Class C 3.22%
Tesla Inc 2.44%
NVIDIA Corp 2.21%
Visa Inc Class A 1.78%
PayPal Holdings Inc 1.6%

VUG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 10.13%, 9.52%, 6.88%, 3.89%, and 3.43%.

Alphabet Inc Class C (3.22%), Tesla Inc (2.44%), and NVIDIA Corp (2.21%) have a slightly smaller but still significant weight. Visa Inc Class A and PayPal Holdings Inc are also represented in the VUG’s holdings at 1.78% and 1.6%.

MINT - Holdings

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.

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Risk Analysis

VUG MINT
Mean Return 1.44 0.12
R-squared 92.48 4.7
Std. Deviation 14.76 1.08
Alpha 1.81 0.62
Beta 1.04 0.08
Sharpe Ratio 1.13 0.78
Treynor Ratio 16.13 10.8

The Vanguard Growth Index Fund ETF Shares (VUG) has a Mean Return of 1.44 with a Beta of 1.04 and a Sharpe Ratio of 1.13. Its Treynor Ratio is 16.13 while VUG’s R-squared is 92.48. Furthermore, the fund has a Alpha of 1.81 and a Standard Deviation of 14.76.

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

VUG’s Mean Return is 1.32 points higher than that of MINT and its R-squared is 87.78 points higher. With a Standard Deviation of 14.76, VUG is slightly more volatile than MINT. The Alpha and Beta of VUG are 1.19 points higher and 0.96 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

VUG vs. MINT - Annual Returns

Year VUG MINT
2020 40.16% 1.63%
2019 37.26% 3.3%
2018 -3.32% 1.72%
2017 27.8% 1.9%
2016 6.13% 1.99%
2015 3.32% 0.52%
2014 13.62% 0.53%
2013 32.38% 0.72%
2012 17.03% 2.48%
2011 1.87% 0.42%
2010 17.11% 1.72%

VUG had its best year in 2020 with an annual return of 40.16%. VUG’s worst year over the past decade yielded -3.32% and occurred in 2018. In most years the Vanguard Growth Index Fund ETF Shares provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 13.62%, 17.03%, and 17.11% 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

VUG vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VUG $10,000 $46,738 17.58%
MINT $10,000 $11,624 1.52%

A $10,000 investment in VUG would have resulted in a final balance of $46,738. This is a profit of $36,738 over 10 years and amounts to a compound annual growth rate (CAGR) of 17.58%.

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%.

VUG’s CAGR is 16.06 percentage points higher than that of MINT and as a result, would have yielded $35,114 more on a $10,000 investment. Thus, VUG outperformed MINT by 16.06% annually.


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