XLF vs. MINT: What’s The Difference?

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

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

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

Summary

XLF MINT
Name Financial Select Sector SPDR Fund PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Financial Ultrashort Bond
Issuer SPDR State Street Global Advisors PIMCO
AUM 40.81B 14.02B
Avg. Return 12.17% 1.52%
Div. Yield 1.57% 0.56%
Expense Ratio 0.12% 0.36%

The Financial Select Sector SPDR Fund (XLF) is a Financial fund that is issued by SPDR State Street Global Advisors. It currently has 40.81B total assets under management and has yielded an average annual return of 12.17% over the past 10 years. The fund has a dividend yield of 1.57% 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%.

XLF’s dividend yield is 1.01% higher than that of MINT (1.57% vs. 0.56%). Also, XLF yielded on average 10.64% more per year over the past decade (12.17% vs. 1.52%). The expense ratio of XLF is 0.24 percentage points lower than MINT’s (0.12% vs. 0.36%).

Fund Composition

Holdings

XLF - Holdings

XLF Holdings Weight
Berkshire Hathaway Inc Class B 12.83%
JPMorgan Chase & Co 11.47%
Bank of America Corp 7.57%
Wells Fargo & Co 4.56%
Citigroup Inc 3.56%
Morgan Stanley 3.32%
Goldman Sachs Group Inc 3.15%
BlackRock Inc 3.02%
Charles Schwab Corp 2.66%
American Express Co 2.62%

XLF’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Bank of America Corp, Wells Fargo & Co, and Citigroup Inc at 12.83%, 11.47%, 7.57%, 4.56%, and 3.56%.

Morgan Stanley (3.32%), Goldman Sachs Group Inc (3.15%), and BlackRock Inc (3.02%) have a slightly smaller but still significant weight. Charles Schwab Corp and American Express Co are also represented in the XLF’s holdings at 2.66% and 2.62%.

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

XLF MINT
Mean Return 1.21 0.12
R-squared 73.26 4.7
Std. Deviation 18.86 1.08
Alpha 2.63 0.62
Beta 1.15 0.08
Sharpe Ratio 0.74 0.78
Treynor Ratio 11.25 10.8

The Financial Select Sector SPDR Fund (XLF) has a Alpha of 2.63 with a Sharpe Ratio of 0.74 and a Mean Return of 1.21. Its R-squared is 73.26 while XLF’s Treynor Ratio is 11.25. Furthermore, the fund has a Standard Deviation of 18.86 and a Beta of 1.15.

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

XLF’s Mean Return is 1.09 points higher than that of MINT and its R-squared is 68.56 points higher. With a Standard Deviation of 18.86, XLF is slightly more volatile than MINT. The Alpha and Beta of XLF are 2.01 points higher and 1.07 points higher than MINT’s Alpha and Beta.

Performance

Annual Returns

XLF vs. MINT - Annual Returns

Year XLF MINT
2020 -1.68% 1.63%
2019 31.88% 3.3%
2018 -13.09% 1.72%
2017 22.03% 1.9%
2016 22.55% 1.99%
2015 -1.6% 0.52%
2014 15.02% 0.53%
2013 35.37% 0.72%
2012 28.53% 2.48%
2011 -17.16% 0.42%
2010 11.97% 1.72%

XLF had its best year in 2013 with an annual return of 35.37%. XLF’s worst year over the past decade yielded -17.16% and occurred in 2011. In most years the Financial Select Sector SPDR Fund provided moderate returns such as in 2010, 2014, and 2017 where annual returns amounted to 11.97%, 15.02%, and 22.03% 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

XLF vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
XLF $10,000 $27,491 12.17%
MINT $10,000 $11,624 1.52%

A $10,000 investment in XLF would have resulted in a final balance of $27,491. This is a profit of $17,491 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.17%.

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%.

XLF’s CAGR is 10.64 percentage points higher than that of MINT and as a result, would have yielded $15,867 more on a $10,000 investment. Thus, XLF outperformed MINT by 10.64% annually.


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