MSSM vs VXUS
MSSM vs VXUS
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. MSSM delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | MSSM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.62% | 0.05% | |
| AUM | $714M | $156.5B | |
| Dividend Yield | 2.60% | 2.60% | |
| Holdings | 2,229 | 8,747 | |
| YTD Return | +19.55% | +14.57% | |
| 1Y Return | +33.81% | +27.82% | |
| 3Y Return (annualized) | - | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 15.4% | 15.1% | |
| Max Drawdown | -24.2% | -39.9% | |
| Fund Family | Morgan Stanley | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2024 | Jan 26, 2011 |
MSSM vs VXUS Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is a ETF from Morgan Stanley and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MSSM returned +33.81% while VXUS returned +27.82%. Year to date, MSSM is up 19.55% versus a gain of 14.57% for VXUS.
Risk: Volatility and Drawdowns
MSSM has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MSSM charges 0.62% per year while VXUS charges 0.05%. On a $10,000 position that is $62 vs $5 annually, a gap of $57 per year that compounds over a long holding period. On income, MSSM currently yields 2.60% against 2.60% for VXUS.
Holdings Overlap
MSSM and VXUS share 14 holdings out of 9253 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MSSM | Weight in VXUS | Difference |
|---|---|---|---|
| HBAN | 0.32% | 0.05% | 0.27% |
| CNHI:AS | 0.13% | 0.00% | 0.13% |
| NICE:IL | 0.09% | 0.02% | 0.07% |
| DSG:CA | Pro | Pro | Pro |
| EGP | Pro | Pro | Pro |
| AM | Pro | Pro | Pro |
| JHX:AU | Pro | Pro | Pro |
| SIG | Pro | Pro | Pro |
| ESE | Pro | Pro | Pro |
| SSRM:CA | Pro | Pro | Pro |
See all 10 holdings MSSM shares with VXUS 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 VXUS?
MSSM has an expense ratio of 0.62% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, MSSM or VXUS?
Over the past year MSSM returned +33.81% vs +27.82% for VXUS, so MSSM leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +15.53% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, MSSM or VXUS?
MSSM has been the more volatile fund at 15.4% annualized versus 15.1% for VXUS. Worst drawdown: MSSM -24.2% vs VXUS -39.9%.
Should I hold both MSSM and VXUS?
MSSM and VXUS have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSSM and VXUS?
MSSM and VXUS share 14 common holdings with a 0.1% weight overlap. Combined, they hold 9253 unique securities.
Which pays a higher dividend, MSSM or VXUS?
MSSM yields 2.60% while VXUS yields 2.60%, so MSSM currently pays the higher dividend yield.
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