MSLC vs. MGC

Last updated Aug 4, 2026

MSLC (Morgan Stanley Pathway Large Cap Equity ETF) and MGC (Vanguard Mega Cap ETF) are both Large Cap Blend Equities funds. MSLC is actively managed, while MGC is passively managed. Over the past year, MSLC returned 19.80% vs 23.77% for MGC. Their 0.96 correlation means they have historically moved very closely together. MSLC charges 0.39%/yr vs 0.05%/yr for MGC.

Performance

MSLC vs. MGC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Pathway Large Cap Equity ETF (MSLC) and Vanguard Mega Cap ETF (MGC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSLC achieves a 10.46% return, which is significantly lower than MGC's 10.99% return.

MSLC

• 1D: 1.66%
• 1M: 2.02%
• 6M: 8.56%
• YTD: 10.46%
• 1Y: 19.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 13.71%

MGC

• 1D: 1.55%
• 1M: 1.66%
• 6M: 9.37%
• YTD: 10.99%
• 1Y: 23.77%
• 3Y*: 22.08%
• 5Y*: 13.59%
• 10Y*: 15.89%
• ALL TIME*: 11.55%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MGC Vanguard Mega Cap ETF	$21.42M	$23.07M	$28.62M
MSLC Morgan Stanley Pathway Large Cap Equity ETF	$3.52M	$3.51M	$4.69M

MSLC vs. MGC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSLC Morgan Stanley Pathway Large Cap Equity ETF	10.46%	15.68%	-3.29%
MGC Vanguard Mega Cap ETF	10.99%	19.31%	-2.87%

Correlation

The correlation between MSLC and MGC is 0.97 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.97
Correlation (All Time) Calculated using the full available price history since Dec 9, 2024	0.96

The correlation between MSLC and MGC has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

Return for Risk

MSLC vs. MGC — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MSLC

MSLC Risk / Return Rank: 61
MSLC Sharpe Ratio Rank: 62
MSLC Sortino Ratio Rank: 60
MSLC Omega Ratio Rank: 60
MSLC Calmar Ratio Rank: 55
MSLC Martin Ratio Rank: 68

MGC

MGC Risk / Return Rank: 74
MGC Sharpe Ratio Rank: 76
MGC Sortino Ratio Rank: 74
MGC Omega Ratio Rank: 74
MGC Calmar Ratio Rank: 68
MGC Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MSLC vs. MGC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Pathway Large Cap Equity ETF (MSLC) and Vanguard Mega Cap ETF (MGC). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MSLC	MGC	Difference
Sharpe ratio: Return per unit of total volatility	1.59	1.76	-0.18
Sortino ratio: Return per unit of downside risk	2.22	2.44	-0.23
Omega ratio: Gain probability vs. loss probability	1.28	1.31	-0.03
Calmar ratio: Return relative to maximum drawdown	2.14	2.42	-0.29
Martin ratio: Return relative to average drawdown	8.94	9.79	-0.85

MSLC vs. MGC - Sharpe Ratio Comparison

The current MSLC Sharpe Ratio is 1.59, which is comparable to the MGC Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of MSLC and MGC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MSLC vs. MGC - Drawdown Comparison

The maximum MSLC drawdown since its inception was -17.86%, smaller than the maximum MGC drawdown of -52.26%. Use the drawdown chart below to compare losses from any high point for MSLC and MGC.

Drawdown Indicators

	MSLC	MGC	Difference
Max Drawdown Largest peak-to-trough decline	-17.86%	-52.26%	+34.40%
Max Drawdown (1Y) Largest decline over 1 year	-9.31%	-9.85%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	—	-19.28%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-25.74%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.07%	—
Current Drawdown Current decline from peak	0.00%	-0.62%	+0.62%
Average Drawdown Average peak-to-trough decline	-2.36%	-7.14%	+4.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	2.43%	-0.21%

Volatility

MSLC vs. MGC - Volatility Comparison

The current volatility for Morgan Stanley Pathway Large Cap Equity ETF (MSLC) is 3.73%, while Vanguard Mega Cap ETF (MGC) has a volatility of 4.33%. This indicates that MSLC experiences smaller price fluctuations and is considered to be less risky than MGC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSLC	MGC	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.73%	4.33%	-0.60%
Volatility (6M) Calculated over the trailing 6-month period	9.90%	10.84%	-0.94%
Volatility (1Y) Calculated over the trailing 1-year period	12.54%	13.55%	-1.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.84%	17.45%	-0.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.84%	18.26%	-1.42%

MSLC vs. MGC - Expense Ratio Comparison

MSLC has a 0.39% expense ratio, which is higher than MGC's 0.05% expense ratio.

Dividends

MSLC vs. MGC - Dividend Comparison

MSLC's dividend yield for the trailing twelve months is around 1.94%, more than MGC's 0.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGC Vanguard Mega Cap ETF	0.91%	0.93%	1.15%	1.35%	1.65%	1.17%	1.45%	1.81%	2.10%	1.83%	2.14%	2.11%
MSLC Morgan Stanley Pathway Large Cap Equity ETF	1.94%	2.15%	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 MSLC and MGC in my portfolio?

With a correlation of 0.97, MSLC and MGC move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MSLC or MGC?

MGC has higher volatility (4.33%) compared to MSLC (3.73%). In terms of maximum drawdown, MSLC dropped -17.86% vs MGC's -52.26%.

Which ETF is better, MSLC or MGC?

On 1-year performance, MGC leads with 23.77% vs 19.80% for MSLC. On fees, MGC is cheaper at 0.05% per year. On volatility, MSLC has been the lower-risk option at 3.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSLC or MGC?

Over the 1-year period, MGC has performed better with a 23.77% return vs 19.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSLC or MGC?

MGC is cheaper with a 0.05% expense ratio, compared with 0.39% for MSLC.

Which ETF pays a higher dividend yield, MSLC or MGC?

MSLC has the higher dividend yield at 1.94%, compared with 0.91% for MGC.

What is the main difference between MSLC and MGC?

They also come from different issuers: Morgan Stanley and Vanguard. Their fees differ too: 0.39% for MSLC and 0.05% for MGC.

Which has better risk-adjusted returns?

MGC currently has the higher Sharpe Ratio (1.76 vs 1.59), 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.