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XLC vs. MINT: What’s The Difference?

The Communication Services Select Sector SPDR Fund (XLC) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. XLC is a SPDR State Street Global Advisors Communications fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between XLC and MINT? And which fund is better?

The expense ratio of XLC is 0.24 percentage points lower than MINT’s (0.12% vs. 0.36%). XLC also has a high exposure to the communication services sector while MINT is mostly comprised of Others bonds. Overall, XLC has provided higher returns than MINT over the past 2 years.

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

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Summary

XLCMINT
NameCommunication Services Select Sector SPDR FundPIMCO Enhanced Short Maturity Active Exchange-Traded Fund
CategoryCommunicationsUltrashort Bond
IssuerSPDR State Street Global AdvisorsPIMCO
AUM14.09B14.02B
Avg. Return29.04%1.52%
Div. Yield0.62%0.56%
Expense Ratio0.12%0.36%

The Communication Services Select Sector SPDR Fund (XLC) is a Communications fund that is issued by SPDR State Street Global Advisors. It currently has 14.09B total assets under management and has yielded an average annual return of 29.04% over the past 10 years. The fund has a dividend yield of 0.62% with an expense ratio of 0.12%.

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%.

XLC’s dividend yield is 0.06% higher than that of MINT (0.62% vs. 0.56%). Also, XLC yielded on average 27.51% more per year over the past decade (29.04% vs. 1.52%). The expense ratio of XLC is 0.24 percentage points lower than MINT’s (0.12% vs. 0.36%).

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Fund Composition

Holdings

XLC - Holdings

XLC HoldingsWeight
Facebook Inc A23.75%
Alphabet Inc A11.49%
Alphabet Inc Class C11.16%
Netflix Inc4.78%
Charter Communications Inc A4.65%
Comcast Corp Class A4.44%
T-Mobile US Inc4.41%
The Walt Disney Co4.39%
AT&T Inc4.35%
Verizon Communications Inc4.33%

XLC’s Top Holdings are Facebook Inc A, Alphabet Inc A, Alphabet Inc Class C, Netflix Inc, and Charter Communications Inc A at 23.75%, 11.49%, 11.16%, 4.78%, and 4.65%.

Comcast Corp Class A (4.44%), T-Mobile US Inc (4.41%), and The Walt Disney Co (4.39%) have a slightly smaller but still significant weight. AT&T Inc and Verizon Communications Inc are also represented in the XLC’s holdings at 4.35% and 4.33%.

MINT - Holdings

MINT Bond SectorsWeight
Others0.0%
Below B0.0%
B0.0%
BB0.0%
BBB0.0%
A0.0%
AA0.0%
AAA0.0%
US Government0.0%

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.

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Risk Analysis

XLCMINT
Mean Return00.12
R-squared04.7
Std. Deviation01.08
Alpha00.62
Beta00.08
Sharpe Ratio00.78
Treynor Ratio010.8

The Communication Services Select Sector SPDR Fund (XLC) has a Treynor Ratio of 0 with a Standard Deviation of 0 and a Alpha of 0. Its Mean Return is 0 while XLC’s Sharpe Ratio is 0. Furthermore, the fund has a R-squared of 0 and a Beta of 0.

The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Treynor Ratio of 10.8 with a R-squared of 4.7 and a Sharpe Ratio of 0.78. Its Standard Deviation is 1.08 while MINT’s Mean Return is 0.12. Furthermore, the fund has a Beta of 0.08 and a Alpha of 0.62.

XLC’s Mean Return is 0.12 points lower than that of MINT and its R-squared is 4.70 points lower. With a Standard Deviation of 0, XLC is slightly less volatile than MINT. The Alpha and Beta of XLC are 0.62 points lower and 0.08 points lower than MINT’s Alpha and Beta.

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Performance

Annual Returns

XLC vs. MINT - Annual Returns

YearXLCMINT
202026.85%1.63%
201931.22%3.3%
20180.0%1.72%
20170.0%1.9%
20160.0%1.99%
20150.0%0.52%
20140.0%0.53%
20130.0%0.72%
20120.0%2.48%
20110.0%0.42%
20100.0%1.72%

XLC had its best year in 2019 with an annual return of 31.22%. XLC’s worst year over the past decade yielded 0.0% and occurred in 2018. In most years the Communication Services Select Sector SPDR Fund provided moderate returns such as in 2014, 2013, and 2012 where annual returns amounted to 0.0%, 0.0%, and 0.0% 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

XLC vs. MINT - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
XLC$10,000$16,64529.04%
MINT$10,000$10,4981.52%

A $10,000 investment in XLC would have resulted in a final balance of $16,645. This is a profit of $6,645 over 2 years and amounts to a compound annual growth rate (CAGR) of 29.04%.

With a $10,000 investment in MINT, the end total would have been $10,498. This equates to a $498 profit over 2 years and a compound annual growth rate (CAGR) of 1.52%.

XLC’s CAGR is 27.51 percentage points higher than that of MINT and as a result, would have yielded $6,147 more on a $10,000 investment. Thus, XLC outperformed MINT by 27.51% annually.


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