XLY vs. MINT: What’s The Difference?

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

The expense ratio of XLY is 0.24 percentage points lower than MINT’s (0.12% vs. 0.36%). XLY also has a high exposure to the consumer cyclical sector while MINT is mostly comprised of Others bonds. Overall, XLY has provided higher returns than MINT over the past 10 years.

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

Summary

XLY MINT
Name Consumer Discretionary Select Sector SPDR Fund PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
Category Consumer Cyclical Ultrashort Bond
Issuer SPDR State Street Global Advisors PIMCO
AUM 20.21B 14.02B
Avg. Return 18.86% 1.52%
Div. Yield 0.63% 0.56%
Expense Ratio 0.12% 0.36%

The Consumer Discretionary Select Sector SPDR Fund (XLY) is a Consumer Cyclical fund that is issued by SPDR State Street Global Advisors. It currently has 20.21B total assets under management and has yielded an average annual return of 18.86% over the past 10 years. The fund has a dividend yield of 0.63% 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%.

XLY’s dividend yield is 0.07% higher than that of MINT (0.63% vs. 0.56%). Also, XLY yielded on average 17.34% more per year over the past decade (18.86% vs. 1.52%). The expense ratio of XLY is 0.24 percentage points lower than MINT’s (0.12% vs. 0.36%).

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Fund Composition

Holdings

XLY - Holdings

XLY Holdings Weight
Amazon.com Inc 22.9%
Tesla Inc 13.5%
The Home Depot Inc 8.74%
McDonald’s Corp 4.5%
Nike Inc B 4.45%
Lowe’s Companies Inc 3.58%
Starbucks Corp 3.44%
Target Corp 3.12%
Booking Holdings Inc 2.35%
TJX Companies Inc 2.12%

XLY’s Top Holdings are Amazon.com Inc, Tesla Inc, The Home Depot Inc, McDonald’s Corp, and Nike Inc B at 22.9%, 13.5%, 8.74%, 4.5%, and 4.45%.

Lowe’s Companies Inc (3.58%), Starbucks Corp (3.44%), and Target Corp (3.12%) have a slightly smaller but still significant weight. Booking Holdings Inc and TJX Companies Inc are also represented in the XLY’s holdings at 2.35% and 2.12%.

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.

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Risk Analysis

XLY MINT
Mean Return 1.47 0.12
R-squared 80.84 4.7
Std. Deviation 15.97 1.08
Alpha 6.96 0.62
Beta 1.02 0.08
Sharpe Ratio 1.06 0.78
Treynor Ratio 16.69 10.8

The Consumer Discretionary Select Sector SPDR Fund (XLY) has a Beta of 1.02 with a Standard Deviation of 15.97 and a R-squared of 80.84. Its Mean Return is 1.47 while XLY’s Alpha is 6.96. Furthermore, the fund has a Treynor Ratio of 16.69 and a Sharpe Ratio of 1.06.

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

XLY’s Mean Return is 1.35 points higher than that of MINT and its R-squared is 76.14 points higher. With a Standard Deviation of 15.97, XLY is slightly more volatile than MINT. The Alpha and Beta of XLY are 6.34 points higher and 0.94 points higher than MINT’s Alpha and Beta.

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Performance

Annual Returns

XLY vs. MINT - Annual Returns

Year XLY MINT
2020 29.66% 1.63%
2019 28.43% 3.3%
2018 1.66% 1.72%
2017 22.77% 1.9%
2016 5.87% 1.99%
2015 9.93% 0.52%
2014 9.49% 0.53%
2013 42.74% 0.72%
2012 23.6% 2.48%
2011 5.98% 0.42%
2010 27.36% 1.72%

XLY had its best year in 2013 with an annual return of 42.74%. XLY’s worst year over the past decade yielded 1.66% and occurred in 2018. In most years the Consumer Discretionary Select Sector SPDR Fund provided moderate returns such as in 2015, 2017, and 2012 where annual returns amounted to 9.93%, 22.77%, and 23.6% 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

XLY vs. MINT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
XLY $10,000 $49,518 18.86%
MINT $10,000 $11,624 1.52%

A $10,000 investment in XLY would have resulted in a final balance of $49,518. This is a profit of $39,518 over 10 years and amounts to a compound annual growth rate (CAGR) of 18.86%.

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%.

XLY’s CAGR is 17.34 percentage points higher than that of MINT and as a result, would have yielded $37,894 more on a $10,000 investment. Thus, XLY outperformed MINT by 17.34% annually.


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