MSSM vs SPY
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, MSSM or SPY?
Small Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. MSSM led over 1Y, SPY over 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 | SPY |
|---|---|---|
| Expense Ratio | 0.62% | 0.09%Best |
| AUM | $705M | $804.7B |
| Dividend Yield | 2.67% | 0.98% |
| Holdings | 2,229 | 505 |
| YTD Return | +12.54%Best | +10.96% |
| 1Y Return | +17.89%Best | +15.52% |
| 3Y Return (annualized) | - | +20.73% |
| 5Y Return (annualized) | - | +12.53% |
| Volatility (annualized) | 15.3% | 12.8%Best |
| Max Drawdown | -24.2% | -18.8%Best |
| $10,000 over 1.8 years | $12,000 | $12,780Best |
| Fund Family | Morgan Stanley | State Street Investment Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Dec 9, 2024 | Jan 22, 1993 |
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 16, 2026 (1.8 years).
MSSM 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 1.8 years both funds cover.
MSSM vs SPY Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is an ETF from Morgan Stanley and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MSSM returned +17.89% while SPY returned +15.52%. Year to date, MSSM is up 12.54% versus a gain of 10.96% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSSM has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.8% 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 -24.2% for MSSM and -18.8% 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MSSM charges 0.62% per year while SPY charges 0.09%. On a $10,000 position that is $62 vs $9 annually, a gap of $53 per year that compounds over a long holding period. On income, MSSM currently yields 2.67% against 0.98% for SPY.
Holdings Overlap
At least 2.2% of SPY'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.
SPY and MSSM share little of their money.
The two holdings books were reported 124 days apart, MSSM as of Apr 30, 2026 and SPY as of Sep 1, 2026, so some of the difference between them is the time between the two reports rather than the funds.
64 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 504 in SPY, against full books of 2,229 and 505.
Top Shared Holdings
| Stock | Weight in MSSM | Weight in SPY | Difference |
|---|---|---|---|
| SNDKSandisk Corp/De | 1.24% | 0.35% | 0.89% |
| FIXComfort Systems USA Inc. | 1.38% | 0.08% | 1.30% |
| CIENCiena Corp | 0.95% | 0.08% | 0.87% |
| COHRCoherent Corp | 0.59% | 0.08% | 0.51% |
| FFIVF5 Networks Inc. | 0.44% | 0.03% | 0.41% |
| LITELumentum Holdings Inc | 0.35% | 0.10% | 0.25% |
| CHRWCH Robinson Worldwide | 0.34% | 0.03% | 0.31% |
| HBANHuntington Bancshares Inc./Oh | 0.32% | 0.05% | 0.27% |
| EGEverest Group Ltd Common Stock | 0.31% | 0.02% | 0.29% |
| DVNDevon Energy Corporation | 0.24% | 0.09% | 0.15% |
You are not choosing between two funds in isolation.
Whichever of MSSM 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, MSSM or SPY?
MSSM has an expense ratio of 0.62% while SPY charges 0.09%. SPY is the cheaper option, by $53 a year on a $10,000 investment.
Which performed better, MSSM or SPY?
Over the past year MSSM returned +17.89% vs +15.52% for SPY, so MSSM leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +10.66% vs +14.60% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSSM or SPY?
MSSM has been the more volatile fund at 15.3% annualized versus 12.8% for SPY. Worst drawdown: MSSM -24.2% vs SPY -18.8%.
Should I hold both MSSM and SPY?
MSSM and SPY have a monthly-return correlation of 0.85, 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 SPY?
At least 2.2% of SPY's money is in holdings MSSM also owns. Our book for MSSM is partial, so the real figure is this or higher. They hold 64 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 504 in SPY.
Which pays a higher dividend, MSSM or SPY?
MSSM yields 2.67% while SPY yields 0.98%, so MSSM currently pays the higher dividend yield.
Is SPY better than MSSM?
SPY has a lower expense ratio. MSSM led over 1Y, SPY over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.