The Vanguard Large-Cap Index Fund ETF Shares (VV) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VV is a Vanguard Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VV and MINT? And which fund is better?
The expense ratio of VV is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%). VV also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VV has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare VV vs. MINT. We’ll look at annual returns and holdings, as well as at their performance and fund composition. Moreover, I’ll also discuss VV’s and MINT’s industry exposure, portfolio growth, and risk metrics and examine how these affect their overall returns.
|Name||Vanguard Large-Cap Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Large Blend||Ultrashort Bond|
The Vanguard Large-Cap Index Fund ETF Shares (VV) is a Large Blend fund that is issued by Vanguard. It currently has 37.65B total assets under management and has yielded an average annual return of 14.75% over the past 10 years. The fund has a dividend yield of 1.26% 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%.
VV’s dividend yield is 0.70% higher than that of MINT (1.26% vs. 0.56%). Also, VV yielded on average 13.23% more per year over the past decade (14.75% vs. 1.52%). The expense ratio of VV is 0.32 percentage points lower than MINT’s (0.04% vs. 0.36%).
|Facebook Inc Class A||2.19%|
|Alphabet Inc Class A||1.93%|
|Alphabet Inc Class C||1.81%|
|Berkshire Hathaway Inc Class B||1.3%|
|JPMorgan Chase & Co||1.24%|
VV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.7%, 5.35%, 3.87%, 2.19%, and 1.93%.
Alphabet Inc Class C (1.81%), Tesla Inc (1.37%), and Berkshire Hathaway Inc Class B (1.3%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VV’s holdings at 1.24% and 1.24%.
|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.
The Vanguard Large-Cap Index Fund ETF Shares (VV) has a R-squared of 99.86 with a Beta of 1.01 and a Alpha of -0.08. Its Sharpe Ratio is 1.04 while VV’s Mean Return is 1.24. Furthermore, the fund has a Treynor Ratio of 14.14 and a Standard Deviation of 13.75.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a R-squared of 4.7 with a Treynor Ratio of 10.8 and a Alpha of 0.62. Its Sharpe Ratio is 0.78 while MINT’s Mean Return is 0.12. Furthermore, the fund has a Beta of 0.08 and a Standard Deviation of 1.08.
VV’s Mean Return is 1.12 points higher than that of MINT and its R-squared is 95.16 points higher. With a Standard Deviation of 13.75, VV is slightly more volatile than MINT. The Alpha and Beta of VV are 0.70 points lower and 0.93 points higher than MINT’s Alpha and Beta.
VV had its best year in 2013 with an annual return of 32.65%. VV’s worst year over the past decade yielded -4.44% and occurred in 2018. In most years the Vanguard Large-Cap Index Fund ETF Shares provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.39%, 15.81%, and 16.09% 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 VV would have resulted in a final balance of $37,103. This is a profit of $27,103 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.75%.
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%.
VV’s CAGR is 13.23 percentage points higher than that of MINT and as a result, would have yielded $25,479 more on a $10,000 investment. Thus, VV outperformed MINT by 13.23% annually.
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