The Vanguard Extended Market Index Fund ETF Shares (VXF) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VXF is a Vanguard Mid-Cap Growth fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VXF and MINT? And which fund is better?
The expense ratio of VXF is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%). VXF also has a high exposure to the technology sector while MINT is mostly comprised of Others bonds. Overall, VXF has provided higher returns than MINT over the past 10 years.
In this article, we’ll compare VXF vs. MINT. We’ll look at performance and risk metrics, as well as at their fund composition and holdings. Moreover, I’ll also discuss VXF’s and MINT’s portfolio growth, annual returns, and industry exposure and examine how these affect their overall returns.
Summary
| VXF | MINT | |
| Name | Vanguard Extended Market Index Fund ETF Shares | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund |
| Category | Mid-Cap Growth | Ultrashort Bond |
| Issuer | Vanguard | PIMCO |
| AUM | 114.53B | 14.02B |
| Avg. Return | 15.47% | 1.52% |
| Div. Yield | 1.19% | 0.56% |
| Expense Ratio | 0.06% | 0.36% |
The Vanguard Extended Market Index Fund ETF Shares (VXF) is a Mid-Cap Growth fund that is issued by Vanguard. It currently has 114.53B total assets under management and has yielded an average annual return of 15.47% over the past 10 years. The fund has a dividend yield of 1.19% with an expense ratio of 0.06%.
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%.
VXF’s dividend yield is 0.63% higher than that of MINT (1.19% vs. 0.56%). Also, VXF yielded on average 13.95% more per year over the past decade (15.47% vs. 1.52%). The expense ratio of VXF is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%).
Fund Composition
Holdings
| VXF Holdings | Weight |
| Square Inc A | 1.2% |
| Zoom Video Communications Inc | 1.04% |
| Uber Technologies Inc | 0.93% |
| Moderna Inc | 0.9% |
| Blackstone Group Inc | 0.83% |
| Snap Inc Class A | 0.8% |
| Twilio Inc A | 0.73% |
| DocuSign Inc | 0.68% |
| CrowdStrike Holdings Inc Class A | 0.63% |
| Marvell Technology Inc | 0.6% |
VXF’s Top Holdings are Square Inc A, Zoom Video Communications Inc, Uber Technologies Inc, Moderna Inc, and Blackstone Group Inc at 1.2%, 1.04%, 0.93%, 0.9%, and 0.83%.
Snap Inc Class A (0.8%), Twilio Inc A (0.73%), and DocuSign Inc (0.68%) have a slightly smaller but still significant weight. CrowdStrike Holdings Inc Class A and Marvell Technology Inc are also represented in the VXF’s holdings at 0.63% and 0.6%.
| 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
| VXF | MINT | |
| Mean Return | 1.24 | 0.12 |
| R-squared | 85.73 | 4.7 |
| Std. Deviation | 18.04 | 1.08 |
| Alpha | -3.26 | 0.62 |
| Beta | 1.23 | 0.08 |
| Sharpe Ratio | 0.79 | 0.78 |
| Treynor Ratio | 10.92 | 10.8 |
The Vanguard Extended Market Index Fund ETF Shares (VXF) has a Alpha of -3.26 with a Treynor Ratio of 10.92 and a Standard Deviation of 18.04. Its Beta is 1.23 while VXF’s Sharpe Ratio is 0.79. Furthermore, the fund has a R-squared of 85.73 and a Mean Return of 1.24.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Treynor Ratio of 10.8 with a Mean Return of 0.12 and a Sharpe Ratio of 0.78. Its R-squared is 4.7 while MINT’s Beta is 0.08. Furthermore, the fund has a Standard Deviation of 1.08 and a Alpha of 0.62.
VXF’s Mean Return is 1.12 points higher than that of MINT and its R-squared is 81.03 points higher. With a Standard Deviation of 18.04, VXF is slightly more volatile than MINT. The Alpha and Beta of VXF are 3.88 points lower and 1.15 points higher than MINT’s Alpha and Beta.
Performance
Annual Returns
| Year | VXF | MINT |
| 2020 | 32.19% | 1.63% |
| 2019 | 28.04% | 3.3% |
| 2018 | -9.37% | 1.72% |
| 2017 | 18.1% | 1.9% |
| 2016 | 16.16% | 1.99% |
| 2015 | -3.26% | 0.52% |
| 2014 | 7.55% | 0.53% |
| 2013 | 38.37% | 0.72% |
| 2012 | 18.48% | 2.48% |
| 2011 | -3.61% | 0.42% |
| 2010 | 27.55% | 1.72% |
VXF had its best year in 2013 with an annual return of 38.37%. VXF’s worst year over the past decade yielded -9.37% and occurred in 2018. In most years the Vanguard Extended Market Index Fund ETF Shares provided moderate returns such as in 2016, 2017, and 2012 where annual returns amounted to 16.16%, 18.1%, and 18.48% 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 |
| VXF | $10,000 | $34,598 | 15.47% |
| MINT | $10,000 | $11,624 | 1.52% |
A $10,000 investment in VXF would have resulted in a final balance of $34,598. This is a profit of $24,598 over 10 years and amounts to a compound annual growth rate (CAGR) of 15.47%.
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%.
VXF’s CAGR is 13.95 percentage points higher than that of MINT and as a result, would have yielded $22,974 more on a $10,000 investment. Thus, VXF outperformed MINT by 13.95% annually.
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