MSSM vs SCHD
MSSM vs SCHD
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. MSSM delivered stronger 1-year returns. MSSM offers more diversification with 1406 holdings.
Side-by-Side Comparison
| Metric | MSSM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.62% | 0.06% | |
| AUM | $714M | $103.7B | |
| Dividend Yield | 2.60% | 3.31% | |
| Holdings | 2,229 | 104 | |
| YTD Return | +18.35% | +23.53% | |
| 1Y Return | +32.20% | +30.95% | |
| 3Y Return (annualized) | - | +14.72% | |
| 5Y Return (annualized) | - | +9.56% | |
| Volatility (annualized) | 15.3% | 13.6% | |
| Max Drawdown | -24.2% | -33.4% | |
| Fund Family | Morgan Stanley | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2024 | Oct 20, 2011 |
MSSM vs SCHD Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is a ETF from Morgan Stanley and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MSSM returned +32.20% while SCHD returned +30.95%. Year to date, MSSM is up 18.35% versus a gain of 23.53% for SCHD.
Risk: Volatility and Drawdowns
MSSM has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -24.2% for MSSM and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSSM charges 0.62% per year while SCHD charges 0.06%. On a $10,000 position that is $62 vs $6 annually, a gap of $56 per year that compounds over a long holding period. On income, MSSM currently yields 2.60% against 3.31% for SCHD.
Holdings Overlap
MSSM and SCHD share 30 holdings out of 1476 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MSSM | Weight in SCHD | Difference |
|---|---|---|---|
| DVN | 0.24% | 1.31% | 1.07% |
| EWBC | 0.37% | 0.47% | 0.10% |
| APA | 0.18% | 0.33% | 0.15% |
| WSO | Pro | Pro | Pro |
| DINO | Pro | Pro | Pro |
| AFG | Pro | Pro | Pro |
| COLB | Pro | Pro | Pro |
| SWKS | Pro | Pro | Pro |
| RHI | Pro | Pro | Pro |
| ORI | Pro | Pro | Pro |
See all 10 holdings MSSM shares with SCHD Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, MSSM or SCHD?
MSSM has an expense ratio of 0.62% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, MSSM or SCHD?
Over the past year MSSM returned +32.20% vs +30.95% for SCHD, so MSSM leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +14.86% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, MSSM or SCHD?
MSSM has been the more volatile fund at 15.3% annualized versus 13.6% for SCHD. Worst drawdown: MSSM -24.2% vs SCHD -33.4%.
Should I hold both MSSM and SCHD?
MSSM and SCHD have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSSM and SCHD?
MSSM and SCHD share 30 common holdings with a 1.6% weight overlap. Combined, they hold 1476 unique securities.
Which pays a higher dividend, MSSM or SCHD?
MSSM yields 2.60% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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