The Vanguard FTSE Emerging Markets Index Fund ETF Shares (VWO) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VWO is a Vanguard Diversified Emerging Mkts fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VWO and MINT? And which fund is better?
The expense ratio of VWO is 0.26 percentage points lower than MINT’s (0.1% vs. 0.36%). VWO also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, VWO has provided higher returns than MINT over the past ten years.
In this article, we’ll compare VWO vs. MINT. We’ll look at industry exposure and risk metrics, as well as at their holdings and annual returns. Moreover, I’ll also discuss VWO’s and MINT’s performance, fund composition, and portfolio growth and examine how these affect their overall returns.
Summary
| VWO | MINT | |
| Name | Vanguard FTSE Emerging Markets Index Fund ETF Shares | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Diversified Emerging Mkts | Ultrashort Bond |
| Issuer | Vanguard | PIMCO |
| AUM | 117.28B | 14.02B |
| Avg. Return | 5.79% | 1.52% |
| Div. Yield | 1.98% | 0.56% |
| Expense Ratio | 0.1% | 0.36% |
The Vanguard FTSE Emerging Markets Index Fund ETF Shares (VWO) is a Diversified Emerging Mkts fund that is issued by Vanguard. It currently has 117.28B total assets under management and has yielded an average annual return of 5.79% over the past 10 years. The fund has a dividend yield of 1.98% with an expense ratio of 0.1%.
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%.
VWO’s dividend yield is 1.42% higher than that of MINT (1.98% vs. 0.56%). Also, VWO yielded on average 4.27% more per year over the past decade (5.79% vs. 1.52%). The expense ratio of VWO is 0.26 percentage points lower than MINT’s (0.1% vs. 0.36%).
Fund Composition
Holdings
| VWO Holdings | Weight |
| Tencent Holdings Ltd | 5.29% |
| Alibaba Group Holding Ltd Ordinary Shares | 4.73% |
| Taiwan Semiconductor Manufacturing Co Ltd | 4.58% |
| Meituan | 1.88% |
| Taiwan Semiconductor Manufacturing Co Ltd ADR | 1.7% |
| Reliance Industries Ltd Shs Dematerialised | 1.06% |
| Naspers Ltd Class N | 1.01% |
| Vale SA | 0.92% |
| Infosys Ltd | 0.91% |
| China Construction Bank Corp Class H | 0.84% |
VWO’s Top Holdings are Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Taiwan Semiconductor Manufacturing Co Ltd, Meituan, and Taiwan Semiconductor Manufacturing Co Ltd ADR at 5.29%, 4.73%, 4.58%, 1.88%, and 1.7%.
Reliance Industries Ltd Shs Dematerialised (1.06%), Naspers Ltd Class N (1.01%), and Vale SA (0.92%) have a slightly smaller but still significant weight. Infosys Ltd and China Construction Bank Corp Class H are also represented in the VWO’s holdings at 0.91% and 0.84%.
| 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
| VWO | MINT | |
| Mean Return | 0.45 | 0.12 |
| R-squared | 81.69 | 4.7 |
| Std. Deviation | 17.64 | 1.08 |
| Alpha | -1.36 | 0.62 |
| Beta | 1.06 | 0.08 |
| Sharpe Ratio | 0.27 | 0.78 |
| Treynor Ratio | 3.14 | 10.8 |
The Vanguard FTSE Emerging Markets Index Fund ETF Shares (VWO) has a Mean Return of 0.45 with a Beta of 1.06 and a Sharpe Ratio of 0.27. Its Treynor Ratio is 3.14 while VWO’s Standard Deviation is 17.64. Furthermore, the fund has a Alpha of -1.36 and a R-squared of 81.69.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Standard Deviation of 1.08 with a Treynor Ratio of 10.8 and a Beta of 0.08. Its Alpha is 0.62 while MINT’s Mean Return is 0.12. Furthermore, the fund has a R-squared of 4.7 and a Sharpe Ratio of 0.78.
VWO’s Mean Return is 0.33 points higher than that of MINT and its R-squared is 76.99 points higher. With a Standard Deviation of 17.64, VWO is slightly more volatile than MINT. The Alpha and Beta of VWO are 1.98 points lower and 0.98 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | VWO | MINT |
| 2020 | 15.32% | 1.63% |
| 2019 | 20.4% | 3.3% |
| 2018 | -14.57% | 1.72% |
| 2017 | 31.38% | 1.9% |
| 2016 | 11.75% | 1.99% |
| 2015 | -15.35% | 0.52% |
| 2014 | 0.6% | 0.53% |
| 2013 | -5.0% | 0.72% |
| 2012 | 18.84% | 2.48% |
| 2011 | -18.68% | 0.42% |
| 2010 | 18.99% | 1.72% |
VWO had its best year in 2017 with an annual return of 31.38%. VWO’s worst year over the past decade yielded -18.68% and occurred in 2011. In most years the Vanguard FTSE Emerging Markets Index Fund ETF Shares provided moderate returns such as in 2014, 2016, and 2020 where annual returns amounted to 0.6%, 11.75%, and 15.32% 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 |
| VWO | $10,000 | $13,615 | 5.79% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in VWO would have resulted in a final balance of $13,615. This is a profit of $3,615 over 10 years and amounts to a compound annual growth rate (CAGR) of 5.79%.
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%.
VWO’s CAGR is 4.27 percentage points higher than that of MINT and as a result, would have yielded $1,991 more on a $10,000 investment. Thus, VWO outperformed MINT by 4.27% annually.
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