The Energy Select Sector SPDR Fund (XLE) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) are both among the Top 100 ETFs. XLE is a SPDR State Street Global Advisors Equity Energy fund and MINT is a PIMCO Ultrashort Bond fund. So, what’s the difference between XLE and MINT? And which fund is better?
The expense ratio of XLE is 0.24 percentage points lower than MINT’s (0.12% vs. 0.36%). XLE also has a high exposure to the energy sector while MINT is mostly comprised of Others bonds. Overall, XLE has provided lower returns than MINT over the past 10 years.
In this article, we’ll compare XLE vs. MINT. We’ll look at portfolio growth and holdings, as well as at their risk metrics and industry exposure. Moreover, I’ll also discuss XLE’s and MINT’s annual returns, performance, and fund composition and examine how these affect their overall returns.
|Name||Energy Select Sector SPDR Fund||PIMCO Enhanced Short Maturity Active Exchange-Traded Fund|
|Category||Equity Energy||Ultrashort Bond|
|Issuer||SPDR State Street Global Advisors||PIMCO|
The Energy Select Sector SPDR Fund (XLE) is a Equity Energy fund that is issued by SPDR State Street Global Advisors. It currently has 25.55B total assets under management and has yielded an average annual return of 1.28% over the past 10 years. The fund has a dividend yield of 3.92% 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%.
XLE’s dividend yield is 3.36% higher than that of MINT (3.92% vs. 0.56%). Also, XLE yielded on average 0.24% less per year over the past decade (1.28% vs. 1.52%). The expense ratio of XLE is 0.24 percentage points lower than MINT’s (0.12% vs. 0.36%).
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|Exxon Mobil Corp||23.7%|
|EOG Resources Inc||4.46%|
|Marathon Petroleum Corp||4.17%|
|Pioneer Natural Resources Co||4.08%|
|Kinder Morgan Inc Class P||3.85%|
|Williams Companies Inc||3.5%|
XLE’s Top Holdings are Exxon Mobil Corp, Chevron Corp, ConocoPhillips, EOG Resources Inc, and Schlumberger Ltd at 23.7%, 20.03%, 4.64%, 4.46%, and 4.43%.
Marathon Petroleum Corp (4.17%), Pioneer Natural Resources Co (4.08%), and Phillips 66 (4.07%) have a slightly smaller but still significant weight. Kinder Morgan Inc Class P and Williams Companies Inc are also represented in the XLE’s holdings at 3.85% and 3.5%.
|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.
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The Energy Select Sector SPDR Fund (XLE) has a Sharpe Ratio of 0.12 with a Standard Deviation of 27.52 and a Mean Return of 0.32. Its R-squared is 61.84 while XLE’s Alpha is -11.98. Furthermore, the fund has a Treynor Ratio of -0.4 and a Beta of 1.54.
The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) has a Alpha of 0.62 with a Mean Return of 0.12 and a Beta of 0.08. Its Standard Deviation is 1.08 while MINT’s Treynor Ratio is 10.8. Furthermore, the fund has a Sharpe Ratio of 0.78 and a R-squared of 4.7.
XLE’s Mean Return is 0.20 points higher than that of MINT and its R-squared is 57.14 points higher. With a Standard Deviation of 27.52, XLE is slightly more volatile than MINT. The Alpha and Beta of XLE are 12.60 points lower and 1.46 points higher than MINT’s Alpha and Beta.
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XLE had its best year in 2016 with an annual return of 27.95%. XLE’s worst year over the past decade yielded -32.56% and occurred in 2020. In most years the Energy Select Sector SPDR Fund provided moderate returns such as in 2017, 2011, and 2012 where annual returns amounted to -1.01%, 2.98%, and 5.17% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in XLE would have resulted in a final balance of $7,674. This is a profit of $-2,326 over 10 years and amounts to a compound annual growth rate (CAGR) of 1.28%.
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%.
XLE’s CAGR is 0.24 percentage points lower than that of MINT and as a result, would have yielded $3,950 less on a $10,000 investment. Thus, XLE performed worse than MINT by 0.24% annually.
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