MSSM vs VTI
MSSM vs VTI
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. MSSM delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | MSSM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.62% | 0.03% | |
| AUM | $714M | $663.5B | |
| Dividend Yield | 2.60% | 1.07% | |
| Holdings | 2,229 | 3,543 | |
| 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 Family | Morgan Stanley | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2024 | May 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
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
| Stock | Weight in MSSM | Weight in VTI | Difference |
|---|---|---|---|
| SNDK | 1.24% | 0.46% | 0.78% |
| FIX | 1.38% | 0.10% | 1.28% |
| BE | 1.20% | 0.11% | 1.09% |
| CIEN | Pro | Pro | Pro |
| 0RMV:LN | Pro | Pro | Pro |
| VSAT | Pro | Pro | Pro |
| NXT | Pro | Pro | Pro |
| COHR | Pro | Pro | Pro |
| RMBS | Pro | Pro | Pro |
| VECO | Pro | Pro | Pro |
See all 10 holdings MSSM shares with VTI 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 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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