The Vanguard Total International Stock Index Fund ETF Shares (VXUS) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. VXUS is a Vanguard Foreign Large Blend fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between VXUS and MINT? And which fund is better?
The expense ratio of VXUS is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%). VXUS also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, VXUS has provided higher returns than MINT over the past ten years.
In this article, we’ll compare VXUS vs. MINT. We’ll look at risk metrics and performance, as well as at their portfolio growth and industry exposure. Moreover, I’ll also discuss VXUS’s and MINT’s annual returns, holdings, and fund composition and examine how these affect their overall returns.
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|Name||Vanguard Total International Stock Index Fund ETF Shares||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Foreign Large Blend||Ultrashort Bond|
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 404.73B total assets under management and has yielded an average annual return of 8.41% over the past 10 years. The fund has a dividend yield of 2.44% with an expense ratio of 0.08%.
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%.
VXUS’s dividend yield is 1.88% higher than that of MINT (2.44% vs. 0.56%). Also, VXUS yielded on average 6.88% more per year over the past decade (8.41% vs. 1.52%). The expense ratio of VXUS is 0.28 percentage points lower than MINT’s (0.08% vs. 0.36%).
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|Taiwan Semiconductor Manufacturing Co Ltd||1.62%|
|Tencent Holdings Ltd||1.41%|
|Alibaba Group Holding Ltd Ordinary Shares||1.26%|
|Samsung Electronics Co Ltd||1.05%|
|ASML Holding NV||0.86%|
|Roche Holding AG||0.81%|
|Toyota Motor Corp||0.67%|
|LVMH Moet Hennessy Louis Vuitton SE||0.61%|
VXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.62%, 1.41%, 1.26%, 1.1%, and 1.05%.
ASML Holding NV (0.86%), Roche Holding AG (0.81%), and Toyota Motor Corp (0.67%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VXUS’s holdings at 0.61% and 0.6%.
|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 Total International Stock Index Fund ETF Shares (VXUS) has a Standard Deviation of 15.12 with a Beta of 0.99 and a Sharpe Ratio of 0.4. Its R-squared is 98.39 while VXUS’s Alpha is 0.31. Furthermore, the fund has a Treynor Ratio of 5.14 and a Mean Return of 0.56.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Treynor Ratio of 10.8 with a Beta of 0.08 and a Alpha of 0.62. Its Mean Return is 0.12 while MINT’s R-squared is 4.7. Furthermore, the fund has a Standard Deviation of 1.08 and a Sharpe Ratio of 0.78.
VXUS’s Mean Return is 0.44 points higher than that of MINT and its R-squared is 93.69 points higher. With a Standard Deviation of 15.12, VXUS is slightly more volatile than MINT. The Alpha and Beta of VXUS are 0.31 points lower and 0.91 points higher than MINT’s Alpha and Beta.
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VXUS had its best year in 2017 with an annual return of 27.52%. VXUS’s worst year over the past decade yielded -14.42% and occurred in 2018. In most years the Vanguard Total International Stock Index Fund ETF Shares provided moderate returns such as in 2010, 2016, and 2020 where annual returns amounted to 0.0%, 4.72%, and 11.32% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in VXUS would have resulted in a final balance of $19,315. This is a profit of $9,315 over 9 years and amounts to a compound annual growth rate (CAGR) of 8.41%.
With a $10,000 investment in MINT, the end total would have been $11,576. This equates to a $1,576 profit over 9 years and a compound annual growth rate (CAGR) of 1.52%.
VXUS’s CAGR is 6.88 percentage points higher than that of MINT and as a result, would have yielded $7,739 more on a $10,000 investment. Thus, VXUS outperformed MINT by 6.88% annually.
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