MSSM vs. IWC
MSSM (Morgan Stanley Pathway Small-Mid Cap Equity ETF) and IWC (iShares Micro-Cap ETF) are both Small Cap Blend Equities funds. MSSM is actively managed, while IWC is passively managed. Over the past year, MSSM returned 35.45% vs 55.24% for IWC. Their correlation of 0.91 suggests significant overlap in exposure. MSSM charges 0.62%/yr vs 0.60%/yr for IWC.
Performance
MSSM vs. IWC - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, MSSM achieves a 17.34% return, which is significantly lower than IWC's 18.97% return.
MSSM
- 1D
- -0.79%
- 1M
- 3.77%
- YTD
- 17.34%
- 6M
- 17.18%
- 1Y
- 35.45%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
IWC
- 1D
- -2.09%
- 1M
- 2.88%
- YTD
- 18.97%
- 6M
- 18.63%
- 1Y
- 55.24%
- 3Y*
- 21.73%
- 5Y*
- 5.45%
- 10Y*
- 11.35%
MSSM vs. IWC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF | 17.34% | 11.33% | -5.83% |
IWC iShares Micro-Cap ETF | 18.97% | 22.45% | -4.94% |
Correlation
The correlation between MSSM and IWC is 0.89, 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 | 0.89 |
Correlation (All Time) Calculated using the full available price history since Dec 10, 2024 | 0.91 |
The correlation between MSSM and IWC has been stable across timeframes, ranging from 0.89 to 0.91 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
MSSM vs. IWC — Risk / Return Rank
MSSM
IWC
MSSM vs. IWC - 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 iShares Micro-Cap ETF (IWC). 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.
| MSSM | IWC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.29 | ||
| Sortino ratioReturn per unit of downside risk | -0.20 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.37 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 3.75 | 4.47 | -0.72 |
| Martin ratioReturn relative to average drawdown | 14.47 | 14.76 | -0.29 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| MSSM | IWC | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.07 | 2.36 | -0.29 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.22 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.47 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.73 | 0.31 | +0.41 |
Drawdowns
MSSM vs. IWC - Drawdown Comparison
The maximum MSSM drawdown since its inception was -24.18%, smaller than the maximum IWC drawdown of -64.61%. Use the drawdown chart below to compare losses from any high point for MSSM and IWC.
Loading charts...
Drawdown Indicators
| MSSM | IWC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.18% | -64.61% | +40.43% |
Max Drawdown (1Y)Largest decline over 1 year | -9.50% | -12.43% | +2.93% |
Max Drawdown (3Y)Largest decline over 3 years | — | -29.46% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -40.68% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -47.21% | — |
Current DrawdownCurrent decline from peak | -0.79% | -2.90% | +2.11% |
Average DrawdownAverage peak-to-trough decline | -4.67% | -15.28% | +10.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.46% | 3.75% | -1.29% |
Volatility
MSSM vs. IWC - Volatility Comparison
The current volatility for Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is 5.05%, while iShares Micro-Cap ETF (IWC) has a volatility of 7.29%. This indicates that MSSM experiences smaller price fluctuations and is considered to be less risky than IWC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| MSSM | IWC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.05% | 7.29% | -2.24% |
Volatility (6M)Calculated over the trailing 6-month period | 12.76% | 17.26% | -4.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.27% | 23.63% | -6.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.91% | 24.42% | -3.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.91% | 24.42% | -3.51% |
MSSM vs. IWC - Expense Ratio Comparison
MSSM has a 0.62% expense ratio, which is higher than IWC's 0.60% expense ratio.
Dividends
MSSM vs. IWC - Dividend Comparison
MSSM's dividend yield for the trailing twelve months is around 2.69%, more than IWC's 0.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWC iShares Micro-Cap ETF | 0.91% | 1.10% | 1.06% | 1.17% | 1.18% | 0.78% | 0.98% | 1.19% | 1.01% | 1.09% | 1.16% | 1.49% |
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF | 2.69% | 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
MSSM and IWC have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IWC has higher volatility (7.29%) compared to MSSM (5.05%). In terms of maximum drawdown, MSSM dropped -24.18% vs IWC's -64.61%.
On 1-year performance, IWC leads with 55.24% vs 35.45% for MSSM. On fees, IWC is cheaper at 0.60% per year. On volatility, MSSM has been the lower-risk option at 5.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, IWC has performed better with a 55.24% return vs 35.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IWC is cheaper with a 0.60% expense ratio, compared with 0.62% for MSSM.
MSSM has the higher dividend yield at 2.69%, compared with 0.91% for IWC.
They also come from different issuers: Morgan Stanley and iShares. Their fees differ too: 0.62% for MSSM and 0.60% for IWC.
IWC currently has the higher Sharpe Ratio (2.36 vs 2.07), 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.
Find the right allocation for MSSM and IWC
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer