DES vs. MSSM

Last updated Jun 3, 2026

DES (WisdomTree U.S. SmallCap Dividend Fund) and MSSM (Morgan Stanley Pathway Small-Mid Cap Equity ETF) are both Small Cap Blend Equities funds. DES is passively managed, while MSSM is actively managed. Over the past year, DES returned 28.87% vs 38.71% for MSSM. Their correlation of 0.84 suggests significant overlap in exposure. DES charges 0.38%/yr vs 0.62%/yr for MSSM.

Performance

DES vs. MSSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree U.S. SmallCap Dividend Fund (DES) and Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DES achieves a 16.63% return, which is significantly lower than MSSM's 18.28% return.

DES

• 1D: 0.99%
• 1M: 0.53%
• YTD: 16.63%
• 6M: 17.07%
• 1Y: 28.87%
• 3Y*: 14.65%
• 5Y*: 6.21%
• 10Y*: 8.17%

MSSM

• 1D: 1.14%
• 1M: 4.12%
• YTD: 18.28%
• 6M: 19.49%
• 1Y: 38.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

DES vs. MSSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
DES WisdomTree U.S. SmallCap Dividend Fund	16.63%	0.25%	-5.77%
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	18.28%	11.33%	-5.83%

Correlation

The correlation between DES and MSSM is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (All Time) Calculated using the full available price history since Dec 10, 2024	0.84

The correlation between DES and MSSM has been stable across timeframes, ranging from 0.83 to 0.84 - a consistent structural relationship.

Return for Risk

DES vs. MSSM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DES

DES Risk / Return Rank: 57
DES Sharpe Ratio Rank: 51
DES Sortino Ratio Rank: 54
DES Omega Ratio Rank: 49
DES Calmar Ratio Rank: 72
DES Martin Ratio Rank: 59

MSSM

MSSM Risk / Return Rank: 70
MSSM Sharpe Ratio Rank: 66
MSSM Sortino Ratio Rank: 66
MSSM Omega Ratio Rank: 61
MSSM Calmar Ratio Rank: 79
MSSM Martin Ratio Rank: 79

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DES vs. MSSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree U.S. SmallCap Dividend Fund (DES) and Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	DES	MSSM	Difference
Sharpe ratio Return per unit of total volatility	1.77	2.26	-0.49
Sortino ratio Return per unit of downside risk	2.64	3.13	-0.49
Omega ratio Gain probability vs. loss probability	1.31	1.38	-0.07
Calmar ratio Return relative to maximum drawdown	3.67	4.10	-0.43
Martin ratio Return relative to average drawdown	10.48	15.85	-5.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DES vs. MSSM - Sharpe Ratio Comparison

The current DES Sharpe Ratio is 1.77, which is comparable to the MSSM Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of DES and MSSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DES	MSSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.77	2.26	-0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.37	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.76	-0.44

Drawdowns

DES vs. MSSM - Drawdown Comparison

The maximum DES drawdown since its inception was -65.48%, which is greater than MSSM's maximum drawdown of -24.18%. Use the drawdown chart below to compare losses from any high point for DES and MSSM.

Drawdown Indicators

	DES	MSSM	Difference
Max Drawdown Largest peak-to-trough decline	-65.48%	-24.18%	-41.30%
Max Drawdown (1Y) Largest decline over 1 year	-7.64%	-9.50%	+1.86%
Max Drawdown (3Y) Largest decline over 3 years	-25.16%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.16%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.65%	—	—
Current Drawdown Current decline from peak	-0.28%	0.00%	-0.28%
Average Drawdown Average peak-to-trough decline	-9.68%	-4.68%	-5.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	2.46%	+0.22%

Volatility

DES vs. MSSM - Volatility Comparison

The current volatility for WisdomTree U.S. SmallCap Dividend Fund (DES) is 4.24%, while Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has a volatility of 4.99%. This indicates that DES experiences smaller price fluctuations and is considered to be less risky than MSSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DES	MSSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.24%	4.99%	-0.75%
Volatility (6M) Calculated over the trailing 6-month period	10.94%	12.75%	-1.81%
Volatility (1Y) Calculated over the trailing 1-year period	16.42%	17.25%	-0.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.56%	20.92%	-1.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.97%	20.92%	+1.05%

DES vs. MSSM - Expense Ratio Comparison

DES has a 0.38% expense ratio, which is lower than MSSM's 0.62% expense ratio.

Dividends

DES vs. MSSM - Dividend Comparison

DES's dividend yield for the trailing twelve months is around 2.37%, less than MSSM's 2.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DES WisdomTree U.S. SmallCap Dividend Fund	2.37%	2.85%	2.81%	2.65%	2.89%	2.31%	2.75%	2.68%	3.65%	2.89%	2.70%	3.09%
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	2.66%	3.15%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DES and MSSM in my portfolio?

DES and MSSM have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DES or MSSM?

MSSM has higher volatility (4.99%) compared to DES (4.24%). In terms of maximum drawdown, DES dropped -65.48% vs MSSM's -24.18%.

Which ETF is better, DES or MSSM?

On 1-year performance, MSSM leads with 38.71% vs 28.87% for DES. On fees, DES is cheaper at 0.38% per year. On volatility, DES has been the lower-risk option at 4.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DES or MSSM?

Over the 1-year period, MSSM has performed better with a 38.71% return vs 28.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DES or MSSM?

DES is cheaper with a 0.38% expense ratio, compared with 0.62% for MSSM.

Which ETF pays a higher dividend yield, DES or MSSM?

MSSM has the higher dividend yield at 2.66%, compared with 2.37% for DES.

What is the main difference between DES and MSSM?

They also come from different issuers: WisdomTree and Morgan Stanley. Their fees differ too: 0.38% for DES and 0.62% for MSSM.

Which has better risk-adjusted returns?

MSSM currently has the higher Sharpe Ratio (2.26 vs 1.77), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.