MSSM vs VYM
Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Vanguard High Dividend Yield ETF
Which is better, MSSM or VYM?
Small Cap Blend against Large Cap Value.
VYM has a lower expense ratio. MSSM led over 1Y, VYM 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 | VYM |
|---|---|---|
| Expense Ratio | 0.62% | 0.04%Best |
| AUM | $705M | $81.6B |
| Dividend Yield | 2.67% | 2.22% |
| Holdings | 2,229 | 613 |
| YTD Return | +12.54%Best | +11.71% |
| 1Y Return | +17.89%Best | +16.24% |
| 3Y Return (annualized) | - | +17.24% |
| 5Y Return (annualized) | - | +11.86% |
| Volatility (annualized) | 15.3% | 9.9%Best |
| Max Drawdown | -24.2% | -14.5%Best |
| $10,000 over 1.8 years | $12,000 | $12,730Best |
| Fund Family | Morgan Stanley | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Dec 9, 2024 | Nov 10, 2006 |
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 VYM 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 VYM Performance
Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is an ETF from Morgan Stanley and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year MSSM returned +17.89% while VYM returned +16.24%. Year to date, MSSM is up 12.54% versus a gain of 11.71% for VYM.
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 9.9% for VYM. 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 -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MSSM charges 0.62% per year while VYM charges 0.04%. On a $10,000 position that is $62 vs $4 annually, a gap of $58 per year that compounds over a long holding period. On income, MSSM currently yields 2.67% against 2.22% for VYM.
Holdings Overlap
At least 7.3% of VYM'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.
VYM and MSSM share little of their money.
The two holdings books were reported 92 days apart, MSSM as of Apr 30, 2026 and VYM as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
243 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 557 in VYM, against full books of 2,229 and 613.
Top Shared Holdings
| Stock | Weight in MSSM | Weight in VYM | Difference |
|---|---|---|---|
| WTFCWintrust Financial Corp | 0.48% | 0.04% | 0.44% |
| RSReliance Steel & Aluminum Co. | 0.43% | 0.08% | 0.35% |
| HBANHuntington Bancshares Inc./Oh | 0.32% | 0.14% | 0.18% |
| DVNDevon Energy Corporation | 0.24% | 0.21% | 0.03% |
| EWBCEast West Bancorp, Inc. | 0.37% | 0.07% | 0.30% |
| FCFSFirstcash Inc | 0.40% | 0.03% | 0.37% |
| BWABorgWarner Inc | 0.37% | 0.05% | 0.32% |
| CHRWCH Robinson Worldwide | 0.34% | 0.07% | 0.27% |
| KBRKbr Inc | 0.39% | 0.02% | 0.37% |
| PRPermian Resource | 0.33% | 0.07% | 0.26% |
You are not choosing between two funds in isolation.
Whichever of MSSM and VYM 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 VYM?
MSSM has an expense ratio of 0.62% while VYM charges 0.04%. VYM is the cheaper option, by $58 a year on a $10,000 investment.
Which performed better, MSSM or VYM?
Over the past year MSSM returned +17.89% vs +16.24% for VYM, so MSSM leads on 1-year performance. Over the longest common window we track (2 years), MSSM annualized +10.66% vs +14.35% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSSM or VYM?
MSSM has been the more volatile fund at 15.3% annualized versus 9.9% for VYM. Worst drawdown: MSSM -24.2% vs VYM -14.5%.
Should I hold both MSSM and VYM?
MSSM and VYM have a monthly-return correlation of 0.77, 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 VYM?
At least 7.3% of VYM's money is in holdings MSSM also owns. Our book for MSSM is partial, so the real figure is this or higher. They hold 243 positions in common, counted across the 1,406 positions we hold weights for in MSSM and 557 in VYM.
Which pays a higher dividend, MSSM or VYM?
MSSM yields 2.67% while VYM yields 2.22%, so MSSM currently pays the higher dividend yield.
Is VYM better than MSSM?
VYM has a lower expense ratio. MSSM led over 1Y, VYM over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.