MSLC vs SPY
Morgan Stanley Pathway Large Cap Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. MSLC offers more diversification with 789 holdings.
Side-by-Side Comparison
| Metric | MSLC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.09% | |
| AUM | $3.9B | $821.1B | |
| Dividend Yield | 1.97% | 1.01% | |
| Holdings | 789 | 505 | |
| YTD Return | +11.28% | +12.71% | |
| 1Y Return | +17.23% | +20.53% | |
| 3Y Return (annualized) | - | +21.60% | |
| 5Y Return (annualized) | - | +12.79% | |
| Volatility (annualized) | 12.4% | 15.3% | |
| Max Drawdown | -17.9% | -56.5% | |
| Fund Family | Morgan Stanley | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2024 | Jan 22, 1993 |
MSLC vs SPY Performance
Morgan Stanley Pathway Large Cap Equity ETF (MSLC) is a ETF from Morgan Stanley and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MSLC returned +17.23% while SPY returned +20.53%. Year to date, MSLC is up 11.28% versus a gain of 12.71% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.4% for MSLC. 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 -17.9% for MSLC and -56.5% for SPY. 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
MSLC charges 0.39% per year while SPY charges 0.09%. On a $10,000 position that is $39 vs $9 annually, a gap of $30 per year that compounds over a long holding period. On income, MSLC currently yields 1.97% against 1.01% for SPY.
Holdings Overlap
MSLC and SPY share 434 holdings out of 803 unique holdings combined, representing a 79.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, MSLC or SPY?
MSLC has an expense ratio of 0.39% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, MSLC or SPY?
Over the past year MSLC returned +17.23% vs +20.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), MSLC annualized +13.83% vs +8.80% for SPY. Past performance does not guarantee future results.
Which is riskier, MSLC or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.4% for MSLC. Worst drawdown: MSLC -17.9% vs SPY -56.5%.
Should I hold both MSLC and SPY?
MSLC and SPY have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between MSLC and SPY?
MSLC and SPY share 434 common holdings with a 79.6% weight overlap. Combined, they hold 803 unique securities.
Which pays a higher dividend, MSLC or SPY?
MSLC yields 1.97% while SPY yields 1.01%, so MSLC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.