MSSM vs VYM
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Vanguard High Dividend Yield ETF
Which is better, MSSM or VYM?
Small Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y and the full window. MSSM is less concentrated, with 6.2% of the fund in its ten largest positions against 25.8%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.62% | 0.04%Best |
| AUM | $688M | $78.9B |
| Dividend Yield | 2.81% | 2.37% |
| Holdings | 2,229 | 608 |
| YTD Return | +9.46% | +11.83%Best |
| 1Y Return | +13.05% | +15.96%Best |
| 3Y Return (annualized) | - | +18.60% |
| 5Y Return (annualized) | - | +11.51% |
| Volatility (annualized) | 15.4% | 10.3%Best |
| Max Drawdown | -24.2% | -14.5%Best |
| $10,000 over 1.8 years | $11,591 | $12,616Best |
| Top 10 Weight | 6.2%Best | 25.8% |
| Fund Family | Morgan Stanley | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Dec 9, 2024 | Nov 10, 2006 |
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 VYM 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 VYM Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is an ETF from Morgan Stanley and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year MSSM returned +13.05% while VYM returned +15.96%. Year to date, MSSM is up 9.46% versus a gain of 11.83% for VYM.
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 10.3% 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 -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 2.81% against 2.37% for VYM.
Holdings Overlap
24.0% of MSSM's money is in holdings VYM also owns. 9.2% of VYM's money is in holdings MSSM also owns.
MSSM and VYM share little of their money.
348 positions in common, counted across the 1,822 positions we hold weights for in MSSM and 602 in VYM, against full books of 2,229 and 608.
What only one of them owns
Our book lists 238 positions for VYM that do not appear in our book for MSSM (88.7% of the fund), and 1,081 for MSSM that do not appear in VYM (69.7%).
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 VYM | Difference |
|---|---|---|---|
| KBRKbr Inc | 0.59% | 0.02% | 0.57% |
| AVNTAvient Corp | 0.51% | 0.02% | 0.49% |
| WTFCWintrust Financial Corp | 0.44% | 0.04% | 0.40% |
| FCFSFirstcash Inc | 0.45% | 0.03% | 0.42% |
| RSReliance Steel & Aluminum Co. | 0.37% | 0.08% | 0.29% |
| HBANHuntington Bancshares Inc./Oh | 0.31% | 0.14% | 0.17% |
| DVNDevon Energy Corp. | 0.22% | 0.22% | 0.00% |
| EGEverest Group, Ltd. | 0.37% | 0.06% | 0.31% |
| AVYAvery Dennison Corp. | 0.35% | 0.05% | 0.30% |
| PRPermian Resources Corp Class A | 0.32% | 0.07% | 0.25% |
24.0% of MSSM is already inside VYM.
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 VYM?
MSSM has an expense ratio of 0.62% while VYM charges 0.04%. VYM is the cheaper option, by $58 a year on a $10,000 investment.
Which performed better, MSSM or VYM?
Over the past year MSSM returned +13.05% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +8.55% vs +13.78% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSSM or VYM?
MSSM has been the more volatile fund at 15.4% annualized versus 10.3% for VYM. Worst drawdown: MSSM -24.2% vs VYM -14.5%.
Should I hold both MSSM and VYM?
MSSM and VYM have a monthly-return correlation of 0.76, 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 VYM?
24.0% of MSSM's money is in holdings VYM also owns. 9.2% of VYM's is in holdings MSSM also owns. They hold 348 positions in common, counted across the 1,822 positions we hold weights for in MSSM and 602 in VYM.
Which pays a higher dividend, MSSM or VYM?
MSSM yields 2.81% while VYM yields 2.37%, so MSSM currently pays the higher dividend yield.
Is VYM better than MSSM?
VYM has a lower expense ratio. VYM led over 1Y and the full window. MSSM is less concentrated, with 6.2% of the fund in its ten largest positions against 25.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.