MSML vs SPY
iShares MSCI USA Small-Cap ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, MSML or SPY?
Small Cap Blend against Large Cap Blend.
MSML has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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 | MSML | SPY |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.09% |
| AUM | $272M | $823.2B |
| Dividend Yield | 1.37% | 0.99% |
| Holdings | 1,571 | 1,515 |
| YTD Return | +8.71% | +12.59%Best |
| 1Y Return | +12.98% | +16.78%Best |
| 3Y Return (annualized) | +16.38% | +22.00%Best |
| 5Y Return (annualized) | +5.65% | +12.80%Best |
| Volatility (annualized) | 19.7% | 14.7%Best |
| Max Drawdown | -61.9% | -56.5%Best |
| $10,000 over 5 years | $13,163 | $18,262Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Jun 28, 2004 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 2, 2004 to Oct 16, 2026 (22.3 years).
MSML vs SPY 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 22.3 years both funds cover.
MSML vs SPY Performance
iShares MSCI USA Small-Cap ETF (MSML) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MSML returned +12.98% while SPY returned +16.78%. Year to date, MSML is up 8.71% versus a gain of 12.59% for SPY.
Over three years, MSML compounded at +16.38% per year against +22.00% for SPY; over five years the annualized figures are +5.65% and +12.80% respectively. Across the full 22-year window we track, SPY has the edge at +9.33% annualized vs +7.60%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSML has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 14.7% for SPY. 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 -61.9% for MSML and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MSML charges 0.04% per year while SPY charges 0.09%. On a $10,000 position that is $4 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, MSML currently yields 1.37% against 0.99% for SPY.
Holdings Overlap
At least 1.4% of SPY's money is in holdings MSML also owns.
Stated as a floor: for MSML, our book for it covers 93.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SPY and MSML share little of their money.
64 positions in common, counted across the 1,359 positions we hold weights for in MSML and 504 in SPY, against full books of 1,571 and 1,515.
Top Shared Holdings
| Stock | Weight in MSML | Weight in SPY | Difference |
|---|---|---|---|
| ZBRAZebra Technologies Corp | 0.30% | 0.03% | 0.27% |
| BBYBest Buy Co Inc | 0.28% | 0.03% | 0.25% |
| RVTYRevvity Inc | 0.28% | 0.02% | 0.26% |
| IEXIdex Corp Common Stock Usd 0.01 | 0.26% | 0.03% | 0.23% |
| NDSNNordson Corp | 0.27% | 0.02% | 0.25% |
| GILDGilead Sciences | 0.00% | 0.28% | 0.28% |
| AKAMAkamai Technologies Inc. | 0.25% | 0.02% | 0.23% |
| HSTHost Hotels & Resorts Inc | 0.25% | 0.02% | 0.23% |
| APAApa Corp | 0.24% | 0.02% | 0.22% |
| MASMasco Corp. | 0.23% | 0.02% | 0.21% |
You are not choosing between two funds in isolation.
Whichever of MSML and SPY 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, MSML or SPY?
MSML has an expense ratio of 0.04% while SPY charges 0.09%. MSML is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, MSML or SPY?
Over the past year MSML returned +12.98% vs +16.78% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (22 years), MSML annualized +7.60% vs +9.33% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSML or SPY?
MSML has been the more volatile fund at 19.7% annualized versus 14.7% for SPY. Worst drawdown: MSML -61.9% vs SPY -56.5%.
Should I hold both MSML and SPY?
MSML and SPY have a monthly-return correlation of 0.89, 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 MSML and SPY?
At least 1.4% of SPY's money is in holdings MSML also owns. Our book for MSML is partial, so the real figure is this or higher. They hold 64 positions in common, counted across the 1,359 positions we hold weights for in MSML and 504 in SPY.
Which pays a higher dividend, MSML or SPY?
MSML yields 1.37% while SPY yields 0.99%, so MSML currently pays the higher dividend yield.
Is SPY better than MSML?
MSML has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.