MSSM vs VYM
MSSM vs VYM
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. MSSM delivered stronger 1-year returns. MSSM offers more diversification with 1406 holdings.
Side-by-Side Comparison
| Metric | MSSM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.62% | 0.04% | |
| AUM | $714M | $79.0B | |
| Dividend Yield | 2.60% | 2.86% | |
| Holdings | 2,229 | 568 | |
| YTD Return | +19.55% | +15.80% | |
| 1Y Return | +33.81% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 15.4% | 14.6% | |
| Max Drawdown | -24.2% | -58.8% | |
| Fund Family | Morgan Stanley | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2024 | Nov 10, 2006 |
MSSM vs VYM Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is a ETF from Morgan Stanley and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MSSM returned +33.81% while VYM returned +26.12%. Year to date, MSSM is up 19.55% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
MSSM has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.6% for VYM. 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 -58.8% for VYM. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MSSM charges 0.62% per year while VYM charges 0.04%. On a $10,000 position that is $62 vs $4 annually, a gap of $58 per year that compounds over a long holding period. On income, MSSM currently yields 2.60% against 2.86% for VYM.
Holdings Overlap
MSSM and VYM share 246 holdings out of 1718 unique holdings combined, representing a 7.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MSSM | Weight in VYM | Difference |
|---|---|---|---|
| FTAI | 0.94% | 0.14% | 0.80% |
| RS | 0.43% | 0.07% | 0.36% |
| HBAN | 0.32% | 0.15% | 0.17% |
| CHRW | Pro | Pro | Pro |
| EWBC | Pro | Pro | Pro |
| FCFS | Pro | Pro | Pro |
| BWA | Pro | Pro | Pro |
| ATO | Pro | Pro | Pro |
| PR | Pro | Pro | Pro |
| AVNT | Pro | Pro | Pro |
See all 10 holdings MSSM shares with VYM 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 VYM?
MSSM has an expense ratio of 0.62% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $58 per year of difference.
Which performed better, MSSM or VYM?
Over the past year MSSM returned +33.81% vs +26.12% for VYM, so MSSM leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +15.53% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MSSM or VYM?
MSSM has been the more volatile fund at 15.4% annualized versus 14.6% for VYM. Worst drawdown: MSSM -24.2% vs VYM -58.8%.
Should I hold both MSSM and VYM?
MSSM and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSSM and VYM?
MSSM and VYM share 246 common holdings with a 7.1% weight overlap. Combined, they hold 1718 unique securities.
Which pays a higher dividend, MSSM or VYM?
MSSM yields 2.60% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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