MSSM vs SCHD
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Schwab US Dividend Equity ETF
Which is better, MSSM or SCHD?
Small Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y and the full window. MSSM is less concentrated, with 6.2% of the fund in its ten largest positions against 41.6%.
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 | SCHD |
|---|---|---|
| Expense Ratio | 0.62% | 0.06%Best |
| AUM | $688M | $111.6B |
| Dividend Yield | 2.81% | 3.24% |
| Holdings | 2,229 | 206 |
| YTD Return | +9.46% | +24.55%Best |
| 1Y Return | +13.05% | +29.85%Best |
| 3Y Return (annualized) | - | +16.64% |
| 5Y Return (annualized) | - | +9.54% |
| Volatility (annualized) | 15.4% | 13.8%Best |
| Max Drawdown | -24.2% | -14.0%Best |
| $10,000 over 1.8 years | $11,591 | $12,512Best |
| Top 10 Weight | 6.2%Best | 41.6% |
| Fund Family | Morgan Stanley | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Dec 9, 2024 | Oct 20, 2011 |
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 SCHD 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 SCHD Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is an ETF from Morgan Stanley and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year MSSM returned +13.05% while SCHD returned +29.85%. Year to date, MSSM is up 9.46% versus a gain of 24.55% for SCHD.
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 13.8% for SCHD. 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 -14.0% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.44. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MSSM charges 0.62% per year while SCHD charges 0.06%. On a $10,000 position that is $62 vs $6 annually, a gap of $56 per year that compounds over a long holding period. On income, MSSM currently yields 2.81% against 3.24% for SCHD.
Holdings Overlap
2.0% of MSSM's money is in holdings SCHD also owns. 7.5% of SCHD's money is in holdings MSSM also owns.
SCHD and MSSM share little of their money.
51 positions in common, counted across the 1,822 positions we hold weights for in MSSM and 98 in SCHD, against full books of 2,229 and 206.
What only one of them owns
Our book lists 47 positions for SCHD that do not appear in our book for MSSM (92.3% of the fund), and 1,371 for MSSM that do not appear in SCHD (91.5%).
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 SCHD | Difference |
|---|---|---|---|
| DVNDevon Energy Corp. | 0.22% | 1.35% | 1.13% |
| EWBCEast West Bancorp, Inc. | 0.30% | 0.44% | 0.14% |
| SNASnap-On Inc. | 0.08% | 0.49% | 0.41% |
| BBYBest Buy Co Inc | 0.10% | 0.45% | 0.35% |
| DINOHollyfrontier | 0.10% | 0.45% | 0.35% |
| APAApa Corp | 0.08% | 0.39% | 0.31% |
| FNFFidelity Nationa | 0.06% | 0.26% | 0.20% |
| WSOWatsco Inc | 0.04% | 0.27% | 0.23% |
| AFGAmerican Financial Group Inc/Oh | 0.05% | 0.25% | 0.20% |
| ORIOld Republic International Corp | 0.05% | 0.22% | 0.17% |
You are not choosing between two funds in isolation.
Whichever of MSSM and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MSSM or SCHD?
MSSM has an expense ratio of 0.62% while SCHD charges 0.06%. SCHD is the cheaper option, by $56 a year on a $10,000 investment.
Which performed better, MSSM or SCHD?
Over the past year MSSM returned +13.05% vs +29.85% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +8.55% vs +13.26% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSSM or SCHD?
MSSM has been the more volatile fund at 15.4% annualized versus 13.8% for SCHD. Worst drawdown: MSSM -24.2% vs SCHD -14.0%.
Should I hold both MSSM and SCHD?
MSSM and SCHD have a monthly-return correlation of 0.44, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between MSSM and SCHD?
7.5% of SCHD's money is in holdings MSSM also owns. 7.5% of SCHD's is in holdings MSSM also owns. They hold 51 positions in common, counted across the 1,822 positions we hold weights for in MSSM and 98 in SCHD.
Which pays a higher dividend, MSSM or SCHD?
MSSM yields 2.81% while SCHD yields 3.24%, so SCHD currently pays the higher dividend yield.
Is SCHD better than MSSM?
SCHD has a lower expense ratio. SCHD led over 1Y and the full window. MSSM is less concentrated, with 6.2% of the fund in its ten largest positions against 41.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.