MSSM vs VXUS

MSSM vs VXUS

Which is better, MSSM or VXUS?

Small Cap Blend against Large Cap Blend.

VXUS has a lower expense ratio. VXUS led over 1Y and the full window.

Lower Fees: VXUSHigher Returns: VXUS

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

MetricMSSMVXUS
Expense Ratio0.62%0.05%Best
AUM$705M$158.1B
Dividend Yield2.67%2.51%
Holdings2,2298,747
YTD Return+12.78%Best+12.57%
1Y Return+18.08%+19.71%Best
3Y Return (annualized)-+19.25%
5Y Return (annualized)-+8.59%
Volatility (annualized)15.3%11.6%Best
Max Drawdown-24.2%-13.6%Best
$10,000 over 1.8 years$12,029$14,552Best
Fund FamilyMorgan StanleyVanguard (US)
CategoryEquityEquity
StyleSmall Cap BlendLarge Cap Blend
InceptionDec 9, 2024Jan 26, 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 15, 2026 (1.8 years).

MSSM vs VXUS 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 VXUS Performance

Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is an ETF from Morgan Stanley and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year MSSM returned +18.08% while VXUS returned +19.71%. Year to date, MSSM is up 12.78% versus a gain of 12.57% for VXUS.

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 11.6% for VXUS. 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 -13.6% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

MSSM charges 0.62% per year while VXUS charges 0.05%. On a $10,000 position that is $62 vs $5 annually, a gap of $57 per year that compounds over a long holding period. On income, MSSM currently yields 2.67% against 2.51% for VXUS.

Holdings Overlap

We hold position weights for 1,406 holdings in MSSM and 8,082 in VXUS, totalling 90.4% and 88.8% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 16 positions appear in both.

The two holdings books were reported 92 days apart, MSSM as of Apr 30, 2026 and VXUS as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.

16 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 8,082 in VXUS, against full books of 2,229 and 8,747.

Top Shared Holdings

StockWeight in MSSMWeight in VXUSDifference
HBANHuntington Bancshares Inc./Oh0.32%0.05%0.27%
ABVX:PAAbivax Sa Sponsored Adr (1 Ads : 1 Ordinary)0.27%0.02%0.25%
DSGXDescartes Systems Grp/the Common Stock0.10%0.01%0.09%
NICENice Ltd0.09%0.01%0.08%
EGPEastgroup Properties Inc. Real Estate Investment Trust0.06%0.00%0.06%
JHX:AUJames Hardie Industries Plc Sponsored Adr (1 Ads : 1 Ordinary)0.02%0.03%0.01%
AMAntero Midstream Corporationam0.04%0.01%0.03%
SSRMSsr Mining Inc0.03%0.01%0.02%
BEPC:CABrookfield Renewable Corporation Class A Subordinate Voting Shares0.03%0.01%0.02%
BIPCBrookfield Infrastructure Corporation Class A Ordinary Shares - Subordinate Voting Shares0.03%0.01%0.02%

You are not choosing between two funds in isolation.

Whichever of MSSM and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

MSSMVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, MSSM or VXUS?

MSSM has an expense ratio of 0.62% while VXUS charges 0.05%. VXUS is the cheaper option, by $57 a year on a $10,000 investment.

Which performed better, MSSM or VXUS?

Over the past year MSSM returned +18.08% vs +19.71% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +10.81% vs +23.17% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MSSM or VXUS?

MSSM has been the more volatile fund at 15.3% annualized versus 11.6% for VXUS. Worst drawdown: MSSM -24.2% vs VXUS -13.6%.

Should I hold both MSSM and VXUS?

MSSM and VXUS have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, MSSM or VXUS?

MSSM yields 2.67% while VXUS yields 2.51%, so MSSM currently pays the higher dividend yield.

Is VXUS better than MSSM?

VXUS has a lower expense ratio. VXUS 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.