MSSM vs. SFLO

Last updated Aug 4, 2026

MSSM (Morgan Stanley Pathway Small-Mid Cap Equity ETF) and SFLO (Victoryshares Small Cap Free Cash Flow ETF) are both Small Cap Blend Equities funds. MSSM is actively managed, while SFLO is passively managed. Over the past year, MSSM returned 32.79% vs 47.01% for SFLO. Their 0.70 correlation means they have sometimes moved together and sometimes differently. MSSM charges 0.62%/yr vs 0.49%/yr for SFLO.

Performance

MSSM vs. SFLO - 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 Victoryshares Small Cap Free Cash Flow ETF (SFLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSSM achieves a 18.94% return, which is significantly lower than SFLO's 30.25% return.

MSSM

• 1D: 1.64%
• 1M: -1.00%
• 6M: 11.70%
• YTD: 18.94%
• 1Y: 32.79%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 13.43%

SFLO

• 1D: 1.87%
• 1M: 8.45%
• 6M: 27.60%
• YTD: 30.25%
• 1Y: 47.01%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 18.43%

*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)
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	$647.03K	$624.37K	$1.39M
SFLO Victoryshares Small Cap Free Cash Flow ETF	$5.65M	$4.19M	$2.65M

MSSM vs. SFLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	18.94%	11.33%	-7.04%
SFLO Victoryshares Small Cap Free Cash Flow ETF	30.25%	11.88%	-3.76%

Correlation

The correlation between MSSM and SFLO is 0.60, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.60
Correlation (All Time) Calculated using the full available price history since Dec 9, 2024	0.70

The correlation between MSSM and SFLO has been stable across timeframes, ranging from 0.60 to 0.70 - a consistent structural relationship.

Return for Risk

MSSM vs. SFLO — Risk / Return Rank

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

MSSM

MSSM Risk / Return Rank: 77
MSSM Sharpe Ratio Rank: 74
MSSM Sortino Ratio Rank: 75
MSSM Omega Ratio Rank: 69
MSSM Calmar Ratio Rank: 84
MSSM Martin Ratio Rank: 84

SFLO

SFLO Risk / Return Rank: 94
SFLO Sharpe Ratio Rank: 94
SFLO Sortino Ratio Rank: 94
SFLO Omega Ratio Rank: 92
SFLO Calmar Ratio Rank: 96
SFLO Martin Ratio Rank: 95

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.

MSSM vs. SFLO - 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 Victoryshares Small Cap Free Cash Flow ETF (SFLO). 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	SFLO	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.69	-0.83
Sortino ratio: Return per unit of downside risk	2.63	3.78	-1.15
Omega ratio: Gain probability vs. loss probability	1.32	1.46	-0.14
Calmar ratio: Return relative to maximum drawdown	3.47	6.05	-2.59
Martin ratio: Return relative to average drawdown	12.51	20.29	-7.78

MSSM vs. SFLO - Sharpe Ratio Comparison

The current MSSM Sharpe Ratio is 1.86, which is lower than the SFLO Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of MSSM and SFLO, 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. SFLO - Drawdown Comparison

The maximum MSSM drawdown since its inception was -25.16%, smaller than the maximum SFLO drawdown of -26.63%. Use the drawdown chart below to compare losses from any high point for MSSM and SFLO.

Drawdown Indicators

	MSSM	SFLO	Difference
Max Drawdown Largest peak-to-trough decline	-25.16%	-26.63%	+1.47%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-7.80%	-1.70%
Current Drawdown Current decline from peak	-2.87%	0.00%	-2.87%
Average Drawdown Average peak-to-trough decline	-4.93%	-4.15%	-0.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	2.32%	+0.31%

Volatility

MSSM vs. SFLO - Volatility Comparison

The current volatility for Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is 4.16%, while Victoryshares Small Cap Free Cash Flow ETF (SFLO) has a volatility of 5.72%. This indicates that MSSM experiences smaller price fluctuations and is considered to be less risky than SFLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSSM	SFLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.16%	5.72%	-1.56%
Volatility (6M) Calculated over the trailing 6-month period	13.40%	13.12%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	17.78%	17.58%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.59%	20.51%	+0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.59%	20.51%	+0.08%

MSSM vs. SFLO - Expense Ratio Comparison

MSSM has a 0.62% expense ratio, which is higher than SFLO's 0.49% expense ratio.

Dividends

MSSM vs. SFLO - Dividend Comparison

MSSM's dividend yield for the trailing twelve months is around 2.65%, more than SFLO's 0.71% yield.

Position	TTM	2025	2024
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	2.65%	3.15%	0.00%
SFLO Victoryshares Small Cap Free Cash Flow ETF	0.71%	1.04%	1.28%

Frequently Asked Questions

Can I hold both MSSM and SFLO in my portfolio?

MSSM and SFLO have a correlation of 0.60, 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 SFLO?

SFLO has higher volatility (5.72%) compared to MSSM (4.16%). In terms of maximum drawdown, MSSM dropped -25.16% vs SFLO's -26.63%.

Which ETF is better, MSSM or SFLO?

On 1-year performance, SFLO leads with 47.01% vs 32.79% for MSSM. On fees, SFLO is cheaper at 0.49% per year. On volatility, MSSM has been the lower-risk option at 4.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSSM or SFLO?

Over the 1-year period, SFLO has performed better with a 47.01% return vs 32.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSSM or SFLO?

SFLO is cheaper with a 0.49% expense ratio, compared with 0.62% for MSSM.

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

MSSM has the higher dividend yield at 2.65%, compared with 0.71% for SFLO.

What is the main difference between MSSM and SFLO?

They also come from different issuers: Morgan Stanley and Victory. Their fees differ too: 0.62% for MSSM and 0.49% for SFLO.

Which has better risk-adjusted returns?

SFLO currently has the higher Sharpe Ratio (2.69 vs 1.86), 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.