MSSM vs. BBSC

Last updated Jun 24, 2026

MSSM (Morgan Stanley Pathway Small-Mid Cap Equity ETF) and BBSC (JPMorgan BetaBuilders U.S. Small Cap Equity ETF) are both Small Cap Blend Equities funds. MSSM is actively managed, while BBSC is passively managed. Over the past year, MSSM returned 35.27% vs 39.05% for BBSC. With a 0.97 correlation, they move nearly in lockstep. MSSM charges 0.62%/yr vs 0.09%/yr for BBSC.

Performance

MSSM vs. BBSC - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with MSSM having a 18.58% return and BBSC slightly higher at 19.47%.

MSSM

• 1D: -1.37%
• 1M: 2.61%
• YTD: 18.58%
• 6M: 16.62%
• 1Y: 35.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BBSC

• 1D: -0.56%
• 1M: 3.89%
• YTD: 19.47%
• 6M: 16.87%
• 1Y: 39.05%
• 3Y*: 19.15%
• 5Y*: 6.82%
• 10Y*: —

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

MSSM vs. BBSC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	18.58%	11.33%	-7.04%
BBSC JPMorgan BetaBuilders U.S. Small Cap Equity ETF	19.47%	10.38%	-7.84%

Correlation

The correlation between MSSM and BBSC is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (All Time) Calculated using the full available price history since Dec 9, 2024	0.97

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

Return for Risk

MSSM vs. BBSC — Risk / Return Rank

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

MSSM

MSSM Risk / Return Rank: 71
MSSM Sharpe Ratio Rank: 68
MSSM Sortino Ratio Rank: 67
MSSM Omega Ratio Rank: 60
MSSM Calmar Ratio Rank: 79
MSSM Martin Ratio Rank: 80

BBSC

BBSC Risk / Return Rank: 70
BBSC Sharpe Ratio Rank: 67
BBSC Sortino Ratio Rank: 67
BBSC Omega Ratio Rank: 59
BBSC Calmar Ratio Rank: 83
BBSC Martin Ratio Rank: 76

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.

MSSM vs. BBSC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) and JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC). 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.

	MSSM	BBSC	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.03	-0.03
Sortino ratio: Return per unit of downside risk	2.78	2.85	-0.07
Omega ratio: Gain probability vs. loss probability	1.34	1.34	0.00
Calmar ratio: Return relative to maximum drawdown	3.73	4.11	-0.38
Martin ratio: Return relative to average drawdown	14.28	13.44	+0.84

MSSM vs. BBSC - Sharpe Ratio Comparison

The current MSSM Sharpe Ratio is 1.99, which is comparable to the BBSC Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of MSSM and BBSC, 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

MSSM vs. BBSC - Drawdown Comparison

The maximum MSSM drawdown since its inception was -25.16%, smaller than the maximum BBSC drawdown of -30.96%. Use the drawdown chart below to compare losses from any high point for MSSM and BBSC.

Drawdown Indicators

	MSSM	BBSC	Difference
Max Drawdown Largest peak-to-trough decline	-25.16%	-30.96%	+5.80%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-9.54%	+0.04%
Max Drawdown (3Y) Largest decline over 3 years	—	-29.32%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-30.96%	—
Current Drawdown Current decline from peak	-1.37%	-0.56%	-0.81%
Average Drawdown Average peak-to-trough decline	-5.10%	-11.39%	+6.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.48%	2.91%	-0.43%

Volatility

MSSM vs. BBSC - Volatility Comparison

Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has a higher volatility of 5.93% compared to JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC) at 5.51%. This indicates that MSSM's price experiences larger fluctuations and is considered to be riskier than BBSC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSSM	BBSC	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.93%	5.51%	+0.42%
Volatility (6M) Calculated over the trailing 6-month period	13.39%	13.41%	-0.02%
Volatility (1Y) Calculated over the trailing 1-year period	17.79%	19.38%	-1.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.99%	22.97%	-1.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.99%	22.84%	-1.85%

MSSM vs. BBSC - Expense Ratio Comparison

MSSM has a 0.62% expense ratio, which is higher than BBSC's 0.09% expense ratio.

Dividends

MSSM vs. BBSC - Dividend Comparison

MSSM's dividend yield for the trailing twelve months is around 2.66%, more than BBSC's 1.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
BBSC JPMorgan BetaBuilders U.S. Small Cap Equity ETF	1.00%	1.13%	1.29%	1.58%	1.37%	1.06%	0.18%
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	2.66%	3.15%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSSM and BBSC in my portfolio?

With a correlation of 0.97, MSSM and BBSC 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, MSSM or BBSC?

MSSM has higher volatility (5.93%) compared to BBSC (5.51%). In terms of maximum drawdown, MSSM dropped -25.16% vs BBSC's -30.96%.

Which ETF is better, MSSM or BBSC?

On 1-year performance, BBSC leads with 39.05% vs 35.27% for MSSM. On fees, BBSC is cheaper at 0.09% per year. On volatility, BBSC has been the lower-risk option at 5.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSSM or BBSC?

Over the 1-year period, BBSC has performed better with a 39.05% return vs 35.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSSM or BBSC?

BBSC is cheaper with a 0.09% expense ratio, compared with 0.62% for MSSM.

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

MSSM has the higher dividend yield at 2.66%, compared with 1.00% for BBSC.

What is the main difference between MSSM and BBSC?

They also come from different issuers: Morgan Stanley and JPMorgan. Their fees differ too: 0.62% for MSSM and 0.09% for BBSC.

Which has better risk-adjusted returns?

BBSC currently has the higher Sharpe Ratio (2.03 vs 1.99), 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.