MSSM vs. OUSM

Last updated Jun 4, 2026

MSSM (Morgan Stanley Pathway Small-Mid Cap Equity ETF) and OUSM (OShares U.S. Small-Cap Quality Dividend ETF) are both Small Cap Blend Equities funds. MSSM is actively managed, while OUSM is passively managed. Over the past year, MSSM returned 35.45% vs 10.89% for OUSM. Their correlation of 0.81 suggests significant overlap in exposure. MSSM charges 0.62%/yr vs 0.48%/yr for OUSM.

Performance

MSSM vs. OUSM - 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 OShares U.S. Small-Cap Quality Dividend ETF (OUSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSSM achieves a 17.34% return, which is significantly higher than OUSM's 6.80% return.

MSSM

• 1D: -0.79%
• 1M: 3.77%
• YTD: 17.34%
• 6M: 17.18%
• 1Y: 35.45%
• 3Y*: —
• 5Y*: —
• 10Y*: —

OUSM

• 1D: -0.06%
• 1M: 1.69%
• YTD: 6.80%
• 6M: 6.94%
• 1Y: 10.89%
• 3Y*: 11.71%
• 5Y*: 7.39%
• 10Y*: —

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

MSSM vs. OUSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	17.34%	11.33%	-5.83%
OUSM OShares U.S. Small-Cap Quality Dividend ETF	6.80%	2.17%	-4.85%

Correlation

The correlation between MSSM and OUSM is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (All Time) Calculated using the full available price history since Dec 10, 2024	0.81

The correlation between MSSM and OUSM has been stable across timeframes, ranging from 0.79 to 0.81 - a consistent structural relationship.

Return for Risk

MSSM vs. OUSM — Risk / Return Rank

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

MSSM

MSSM Risk / Return Rank: 67
MSSM Sharpe Ratio Rank: 63
MSSM Sortino Ratio Rank: 63
MSSM Omega Ratio Rank: 58
MSSM Calmar Ratio Rank: 75
MSSM Martin Ratio Rank: 76

OUSM

OUSM Risk / Return Rank: 24
OUSM Sharpe Ratio Rank: 23
OUSM Sortino Ratio Rank: 24
OUSM Omega Ratio Rank: 22
OUSM Calmar Ratio Rank: 25
OUSM Martin Ratio Rank: 25

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. OUSM - 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 OShares U.S. Small-Cap Quality Dividend ETF (OUSM). 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	OUSM	Difference
Sharpe ratio: Return per unit of total volatility	2.07	0.83	+1.24
Sortino ratio: Return per unit of downside risk	2.90	1.34	+1.57
Omega ratio: Gain probability vs. loss probability	1.35	1.15	+0.20
Calmar ratio: Return relative to maximum drawdown	3.75	1.19	+2.56
Martin ratio: Return relative to average drawdown	14.47	3.47	+11.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSSM vs. OUSM - Sharpe Ratio Comparison

The current MSSM Sharpe Ratio is 2.07, which is higher than the OUSM Sharpe Ratio of 0.83. The chart below compares the historical Sharpe Ratios of MSSM and OUSM, 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

	MSSM	OUSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.07	0.83	+1.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.46	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.73	0.48	+0.25

Drawdowns

MSSM vs. OUSM - Drawdown Comparison

The maximum MSSM drawdown since its inception was -24.18%, smaller than the maximum OUSM drawdown of -39.84%. Use the drawdown chart below to compare losses from any high point for MSSM and OUSM.

Drawdown Indicators

	MSSM	OUSM	Difference
Max Drawdown Largest peak-to-trough decline	-24.18%	-39.84%	+15.66%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-9.21%	-0.29%
Max Drawdown (3Y) Largest decline over 3 years	—	-19.44%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-19.44%	—
Current Drawdown Current decline from peak	-0.79%	-1.67%	+0.88%
Average Drawdown Average peak-to-trough decline	-4.67%	-5.22%	+0.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.46%	3.14%	-0.68%

Volatility

MSSM vs. OUSM - Volatility Comparison

Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has a higher volatility of 5.05% compared to OShares U.S. Small-Cap Quality Dividend ETF (OUSM) at 3.66%. This indicates that MSSM's price experiences larger fluctuations and is considered to be riskier than OUSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSSM	OUSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.05%	3.66%	+1.39%
Volatility (6M) Calculated over the trailing 6-month period	12.76%	9.25%	+3.51%
Volatility (1Y) Calculated over the trailing 1-year period	17.27%	13.15%	+4.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.91%	16.30%	+4.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.91%	18.94%	+1.97%

MSSM vs. OUSM - Expense Ratio Comparison

MSSM has a 0.62% expense ratio, which is higher than OUSM's 0.48% expense ratio.

Dividends

MSSM vs. OUSM - Dividend Comparison

MSSM's dividend yield for the trailing twelve months is around 2.69%, more than OUSM's 2.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
OUSM OShares U.S. Small-Cap Quality Dividend ETF	2.07%	2.09%	1.62%	1.64%	1.98%	1.55%	2.02%	1.99%	2.63%	2.17%

Frequently Asked Questions

Can I hold both MSSM and OUSM in my portfolio?

MSSM and OUSM have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSSM or OUSM?

MSSM has higher volatility (5.05%) compared to OUSM (3.66%). In terms of maximum drawdown, MSSM dropped -24.18% vs OUSM's -39.84%.

Which ETF is better, MSSM or OUSM?

On 1-year performance, MSSM leads with 35.45% vs 10.89% for OUSM. On fees, OUSM is cheaper at 0.48% per year. On volatility, OUSM has been the lower-risk option at 3.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSSM or OUSM?

Over the 1-year period, MSSM has performed better with a 35.45% return vs 10.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSSM or OUSM?

OUSM is cheaper with a 0.48% expense ratio, compared with 0.62% for MSSM.

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

MSSM has the higher dividend yield at 2.69%, compared with 2.07% for OUSM.

What is the main difference between MSSM and OUSM?

They also come from different issuers: Morgan Stanley and O'Shares Investments. Their fees differ too: 0.62% for MSSM and 0.48% for OUSM.

Which has better risk-adjusted returns?

MSSM currently has the higher Sharpe Ratio (2.07 vs 0.83), 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.