VYM vs. MINT: What’s The Difference?

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

The expense ratio of VYM is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%). VYM also has a high exposure to the financial services sector while MINT is mostly comprised of Others bonds. Overall, VYM has provided higher returns than MINT over the past ten years.

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

Summary

VYM MINT
Name Vanguard High Dividend Yield Index Fund ETF Shares PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Large Value Ultrashort Bond
Issuer Vanguard PIMCO
AUM 48.5B 14.02B
Avg. Return 12.20% 1.52%
Div. Yield 2.79% 0.56%
Expense Ratio 0.06% 0.36%

The Vanguard High Dividend Yield Index Fund ETF Shares (VYM) is a Large Value fund that is issued by Vanguard. It currently has 48.5B total assets under management and has yielded an average annual return of 12.20% over the past 10 years. The fund has a dividend yield of 2.79% 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%.

VYM’s dividend yield is 2.23% higher than that of MINT (2.79% vs. 0.56%). Also, VYM yielded on average 10.68% more per year over the past decade (12.20% vs. 1.52%). The expense ratio of VYM is 0.30 percentage points lower than MINT’s (0.06% vs. 0.36%).

Fund Composition

Holdings

VYM - Holdings

VYM Holdings Weight
JPMorgan Chase & Co 3.53%
Johnson & Johnson 3.28%
The Home Depot Inc 2.59%
Procter & Gamble Co 2.48%
Bank of America Corp 2.35%
Exxon Mobil Corp 2.02%
Comcast Corp Class A 1.96%
Verizon Communications Inc 1.75%
Intel Corp 1.71%
Cisco Systems Inc 1.69%

VYM’s Top Holdings are JPMorgan Chase & Co, Johnson & Johnson, The Home Depot Inc, Procter & Gamble Co, and Bank of America Corp at 3.53%, 3.28%, 2.59%, 2.48%, and 2.35%.

Exxon Mobil Corp (2.02%), Comcast Corp Class A (1.96%), and Verizon Communications Inc (1.75%) have a slightly smaller but still significant weight. Intel Corp and Cisco Systems Inc are also represented in the VYM’s holdings at 1.71% and 1.69%.

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.

Risk Analysis

VYM MINT
Mean Return 1.04 0.12
R-squared 88.88 4.7
Std. Deviation 12.69 1.08
Alpha -0.7 0.62
Beta 0.88 0.08
Sharpe Ratio 0.93 0.78
Treynor Ratio 13.24 10.8

The Vanguard High Dividend Yield Index Fund ETF Shares (VYM) has a Standard Deviation of 12.69 with a R-squared of 88.88 and a Treynor Ratio of 13.24. Its Mean Return is 1.04 while VYM’s Sharpe Ratio is 0.93. Furthermore, the fund has a Beta of 0.88 and a Alpha of -0.7.

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 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 R-squared of 4.7.

VYM’s Mean Return is 0.92 points higher than that of MINT and its R-squared is 84.18 points higher. With a Standard Deviation of 12.69, VYM is slightly more volatile than MINT. The Alpha and Beta of VYM are 1.32 points lower and 0.80 points higher than MINT’s Alpha and Beta.

Performance

Annual Returns

VYM vs. MINT - Annual Returns

Year VYM MINT
2020 1.14% 1.63%
2019 24.2% 3.3%
2018 -5.87% 1.72%
2017 16.42% 1.9%
2016 16.87% 1.99%
2015 0.33% 0.52%
2014 13.47% 0.53%
2013 30.26% 0.72%
2012 12.68% 2.48%
2011 10.5% 0.42%
2010 14.17% 1.72%

VYM had its best year in 2013 with an annual return of 30.26%. VYM’s worst year over the past decade yielded -5.87% and occurred in 2018. In most years the Vanguard High Dividend Yield Index Fund ETF Shares provided moderate returns such as in 2012, 2014, and 2010 where annual returns amounted to 12.68%, 13.47%, and 14.17% 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

VYM vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VYM $10,000 $29,705 12.20%
MINT $10,000 $11,624 1.52%

A $10,000 investment in VYM would have resulted in a final balance of $29,705. This is a profit of $19,705 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.20%.

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%.

VYM’s CAGR is 10.68 percentage points higher than that of MINT and as a result, would have yielded $18,081 more on a $10,000 investment. Thus, VYM outperformed MINT by 10.68% annually.


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