MSSM vs VTI

Quick Verdict

VTI has a lower expense ratio. MSSM delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: MSSMMore Diversified: VTI

Side-by-Side Comparison

MetricMSSMVTIWinner
Expense Ratio0.62%0.03%
AUM$714M$663.5B
Dividend Yield2.60%1.07%
Holdings2,2293,543
YTD Return+18.35%+13.39%
1Y Return+32.20%+23.21%
3Y Return (annualized)-+20.65%
5Y Return (annualized)-+12.18%
Volatility (annualized)15.3%15.3%
Max Drawdown-24.2%-56.6%
Fund FamilyMorgan StanleyVanguard (US)
CategoryEquityEquity
InceptionDec 9, 2024May 24, 2001

MSSM vs VTI Performance

Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is a ETF from Morgan Stanley and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MSSM returned +32.20% while VTI returned +23.21%. Year to date, MSSM is up 18.35% versus a gain of 13.39% for VTI.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.3% for MSSM. 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 -56.6% for VTI. 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

MSSM charges 0.62% per year while VTI charges 0.03%. On a $10,000 position that is $62 vs $3 annually, a gap of $59 per year that compounds over a long holding period. On income, MSSM currently yields 2.60% against 1.07% for VTI.

Holdings Overlap

5.5%overlap

MSSM and VTI share 1010 holdings out of 3179 unique holdings combined, representing a 5.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MSSMWeight in VTIDifference
SNDK1.24%0.46%0.78%
FIX1.38%0.10%1.28%
BE1.20%0.11%1.09%
CIENProProPro
0RMV:LNProProPro
VSATProProPro
NXTProProPro
COHRProProPro
RMBSProProPro
VECOProProPro
See all 10 holdings MSSM shares with VTI
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, MSSM or VTI?

MSSM has an expense ratio of 0.62% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $59 per year of difference.

Which performed better, MSSM or VTI?

Over the past year MSSM returned +32.20% vs +23.21% for VTI, so MSSM leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +14.86% vs +8.11% for VTI. Past performance does not guarantee future results.

Which is riskier, MSSM or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 15.3% for MSSM. Worst drawdown: MSSM -24.2% vs VTI -56.6%.

Should I hold both MSSM and VTI?

MSSM and VTI have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MSSM and VTI?

MSSM and VTI share 1010 common holdings with a 5.5% weight overlap. Combined, they hold 3179 unique securities.

Which pays a higher dividend, MSSM or VTI?

MSSM yields 2.60% while VTI yields 1.07%, so MSSM currently pays the higher dividend yield.

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