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.
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 | $705M | $112.1B |
| Dividend Yield | 2.67% | 3.00% |
| Holdings | 2,229 | 103 |
| YTD Return | +12.43% | +23.46%Best |
| 1Y Return | +15.71% | +27.20%Best |
| 3Y Return (annualized) | - | +15.41% |
| 5Y Return (annualized) | - | +10.16% |
| Volatility (annualized) | 15.4% | 13.3%Best |
| Max Drawdown | -24.2% | -14.0%Best |
| $10,000 over 1.8 years | $11,982 | $12,512Best |
| 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 |
Not shown on this pair: Top 10 Weight.
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 Sep 18, 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 +15.71% while SCHD returned +27.20%. Year to date, MSSM is up 12.43% versus a gain of 23.46% 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 13.3% 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 0.43. 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 2.67% against 3.00% for SCHD.
Holdings Overlap
At least 5.3% of SCHD's money is in holdings MSSM also owns.
Stated as a floor: for MSSM, our book for it covers 90.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SCHD and MSSM share little of their money.
The two holdings books were reported 123 days apart, MSSM as of Apr 30, 2026 and SCHD as of Aug 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
30 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 100 in SCHD, against full books of 2,229 and 103.
Top Shared Holdings
| Stock | Weight in MSSM | Weight in SCHD | Difference |
|---|---|---|---|
| DVNDevon Energy Corporation | 0.24% | 1.36% | 1.12% |
| EWBCEast West Bancorp, Inc. | 0.37% | 0.42% | 0.05% |
| APAApa Corp | 0.18% | 0.37% | 0.19% |
| DINOHF Sinclair Corp | 0.06% | 0.38% | 0.32% |
| WSOWatsco Inc | 0.08% | 0.26% | 0.18% |
| SWKSSkyworks Solutions Inc. | 0.06% | 0.25% | 0.19% |
| RHIRobert Half International Inc. | 0.18% | 0.11% | 0.07% |
| AFGAmerican Financial Group Inc/Oh | 0.05% | 0.24% | 0.19% |
| ORIOld Republic International Corp | 0.05% | 0.23% | 0.18% |
| COLBColumbia Banking System Inc Common Stock | 0.05% | 0.21% | 0.16% |
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 +15.71% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +10.57% 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 13.3% 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 0.43, 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?
At least 5.3% of SCHD's money is in holdings MSSM also owns. Our book for MSSM is partial, so the real figure is this or higher. They hold 30 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 100 in SCHD.
Which pays a higher dividend, MSSM or SCHD?
MSSM yields 2.67% while SCHD yields 3.00%, 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. Which one suits a particular account depends on what it is for. This is information, not a recommendation.