MSSM vs PSC
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Principal U.S. Small-Cap Multi-Factor ETF
Which is better, MSSM or PSC?
Nearly the same fund. PSC costs less.
PSC has a lower expense ratio. PSC led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. MSSM is less concentrated, with 6.2% of the fund in its ten largest positions against 9.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MSSM | PSC |
|---|---|---|
| Expense Ratio | 0.62% | 0.38%Best |
| AUM | $688M | $2.7B |
| Dividend Yield | 2.81% | 0.54% |
| Holdings | 2,229 | 986 |
| YTD Return | +9.46% | +15.67%Best |
| 1Y Return | +13.05% | +18.73%Best |
| 3Y Return (annualized) | - | +19.35% |
| 5Y Return (annualized) | - | +8.60% |
| Volatility (annualized) | 15.4% | 14.5%Best |
| Max Drawdown | -24.2% | -21.3%Best |
| $10,000 over 1.8 years | $11,591 | $12,296Best |
| Top 10 Weight | 6.2%Best | 9.2% |
| Fund Family | Morgan Stanley | Principal Funds |
| Category | Equity | Equity |
| Style | Small Cap Blend | Small Cap Blend |
| Inception | Dec 9, 2024 | Sep 21, 2016 |
Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Dec 9, 2024 to Oct 14, 2026 (1.8 years).
MSSM vs PSC growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.8 years both funds cover.
MSSM vs PSC Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is an ETF from Morgan Stanley and Principal U.S. Small-Cap Multi-Factor ETF (PSC) is an ETF from Principal Funds. Over the past year MSSM returned +13.05% while PSC returned +18.73%. Year to date, MSSM is up 9.46% versus a gain of 15.67% for PSC.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSSM has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.5% for PSC. 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 -21.3% for PSC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
MSSM charges 0.62% per year while PSC charges 0.38%. On a $10,000 position that is $62 vs $38 annually, a gap of $24 per year that compounds over a long holding period. On income, MSSM currently yields 2.81% against 0.54% for PSC.
Holdings Overlap
18.5% of MSSM's money is in holdings PSC also owns. 92.1% of PSC's money is in holdings MSSM also owns.
Most of PSC is already inside MSSM. Owning both mostly buys the same companies twice.
421 positions in common, counted across the 1,822 positions we hold weights for in MSSM and 489 in PSC, against full books of 2,229 and 986.
What only one of them owns
Our book lists 62 positions for PSC that do not appear in our book for MSSM (7.1% of the fund), and 1,069 for MSSM that do not appear in PSC (76.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in MSSM | Weight in PSC | Difference |
|---|---|---|---|
| TWSTTwist Bioscience Corp. | 0.09% | 1.28% | 1.19% |
| TXG10x Genomics Inc Com Usd 1 Cl A | 0.04% | 1.29% | 1.25% |
| EATBrinker Intl Inc | 0.49% | 0.79% | 0.30% |
| MRX:LNMarex Group Plc | 0.36% | 0.81% | 0.45% |
| ZETAZeta Global Holdings Corp-A | 0.04% | 1.11% | 1.07% |
| FCFSFirstcash Inc | 0.45% | 0.69% | 0.24% |
| VSATViasat Inc | 0.67% | 0.40% | 0.27% |
| BTSGBrightspring Health | 0.47% | 0.60% | 0.13% |
| HAEHaemonetics Corp | 0.52% | 0.54% | 0.02% |
| TCBITexas Capital Bancshares Inc | 0.47% | 0.57% | 0.10% |
92.1% of PSC is already inside MSSM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MSSM or PSC?
MSSM has an expense ratio of 0.62% while PSC charges 0.38%. PSC is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, MSSM or PSC?
Over the past year MSSM returned +13.05% vs +18.73% for PSC, so PSC leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +8.55% vs +12.17% for PSC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSSM or PSC?
MSSM has been the more volatile fund at 15.4% annualized versus 14.5% for PSC. Worst drawdown: MSSM -24.2% vs PSC -21.3%.
Should I hold both MSSM and PSC?
MSSM and PSC have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between MSSM and PSC?
92.1% of PSC's money is in holdings MSSM also owns. 92.1% of PSC's is in holdings MSSM also owns. They hold 421 positions in common, counted across the 1,822 positions we hold weights for in MSSM and 489 in PSC.
Which pays a higher dividend, MSSM or PSC?
MSSM yields 2.81% while PSC yields 0.54%, so MSSM currently pays the higher dividend yield.
Is PSC better than MSSM?
PSC has a lower expense ratio. PSC led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. MSSM is less concentrated, with 6.2% of the fund in its ten largest positions against 9.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.