MSSM vs. VPC

Last updated Jul 21, 2026

MSSM (Morgan Stanley Pathway Small-Mid Cap Equity ETF) and VPC (Virtus Private Credit ETF) are both exchange-traded funds - MSSM is a Small Cap Blend Equities fund actively managed by Morgan Stanley, while VPC is a Nontraditional Bonds fund tracking the Indxx Private Credit Index. MSSM is actively managed, while VPC is passively managed. Over the past year, MSSM returned 28.25% vs -19.01% for VPC. At a 0.49 correlation, their price movements are largely independent. MSSM charges 0.62%/yr vs 0.75%/yr for VPC.

Performance

MSSM vs. VPC - 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 Virtus Private Credit ETF (VPC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSSM achieves a 17.37% return, which is significantly higher than VPC's -11.47% return.

MSSM

• 1D: -0.86%
• 1M: -1.81%
• 6M: 9.15%
• YTD: 17.37%
• 1Y: 28.25%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 12.84%

VPC

• 1D: -0.74%
• 1M: 0.45%
• 6M: -13.89%
• YTD: -11.47%
• 1Y: -19.01%
• 3Y*: -0.94%
• 5Y*: 0.73%
• 10Y*: —
• ALL TIME*: 3.65%

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

MSSM vs. VPC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	17.37%	11.33%	-7.04%
VPC Virtus Private Credit ETF	-11.47%	-6.75%	-0.98%

Correlation

The correlation between MSSM and VPC is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (All Time) Calculated using the full available price history since Dec 9, 2024	0.49

Return for Risk

MSSM vs. VPC — Risk / Return Rank

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

MSSM

MSSM Risk / Return Rank: 70
MSSM Sharpe Ratio Rank: 66
MSSM Sortino Ratio Rank: 68
MSSM Omega Ratio Rank: 61
MSSM Calmar Ratio Rank: 78
MSSM Martin Ratio Rank: 80

VPC

VPC Risk / Return Rank: 1
VPC Sharpe Ratio Rank: 0
VPC Sortino Ratio Rank: 1
VPC Omega Ratio Rank: 1
VPC Calmar Ratio Rank: 2
VPC Martin Ratio Rank: 1

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. VPC - 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 Virtus Private Credit ETF (VPC). 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	VPC	Difference
Sharpe ratio: Return per unit of total volatility	1.60	-1.40	+3.00
Sortino ratio: Return per unit of downside risk	2.32	-1.96	+4.28
Omega ratio: Gain probability vs. loss probability	1.28	0.79	+0.49
Calmar ratio: Return relative to maximum drawdown	2.99	-0.85	+3.84
Martin ratio: Return relative to average drawdown	11.13	-1.49	+12.62

MSSM vs. VPC - Sharpe Ratio Comparison

The current MSSM Sharpe Ratio is 1.60, which is higher than the VPC Sharpe Ratio of -1.40. The chart below compares the historical Sharpe Ratios of MSSM and VPC, 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. VPC - Drawdown Comparison

The maximum MSSM drawdown since its inception was -25.16%, smaller than the maximum VPC drawdown of -53.45%. Use the drawdown chart below to compare losses from any high point for MSSM and VPC.

Drawdown Indicators

	MSSM	VPC	Difference
Max Drawdown Largest peak-to-trough decline	-25.16%	-53.45%	+28.29%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-22.37%	+12.87%
Max Drawdown (3Y) Largest decline over 3 years	—	-24.86%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.86%	—
Current Drawdown Current decline from peak	-4.14%	-21.59%	+17.45%
Average Drawdown Average peak-to-trough decline	-4.96%	-7.89%	+2.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.54%	12.84%	-10.30%

Volatility

MSSM vs. VPC - Volatility Comparison

Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has a higher volatility of 4.14% compared to Virtus Private Credit ETF (VPC) at 3.54%. This indicates that MSSM's price experiences larger fluctuations and is considered to be riskier than VPC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSSM	VPC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.14%	3.54%	+0.60%
Volatility (6M) Calculated over the trailing 6-month period	13.38%	11.03%	+2.35%
Volatility (1Y) Calculated over the trailing 1-year period	17.72%	13.68%	+4.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.69%	13.56%	+7.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.69%	20.45%	+0.24%

MSSM vs. VPC - Expense Ratio Comparison

MSSM has a 0.62% expense ratio, which is lower than VPC's 0.75% expense ratio.

Dividends

MSSM vs. VPC - Dividend Comparison

MSSM's dividend yield for the trailing twelve months is around 2.68%, less than VPC's 16.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	2.68%	3.15%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VPC Virtus Private Credit ETF	16.45%	14.33%	11.26%	11.71%	10.74%	6.31%	10.06%	8.19%

Frequently Asked Questions

Can I hold both MSSM and VPC in my portfolio?

MSSM and VPC have a correlation of 0.46, 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 VPC?

MSSM has higher volatility (4.14%) compared to VPC (3.54%). In terms of maximum drawdown, MSSM dropped -25.16% vs VPC's -53.45%.

Which ETF is better, MSSM or VPC?

On 1-year performance, MSSM leads with 28.25% vs -19.01% for VPC. On fees, MSSM is cheaper at 0.62% per year. On volatility, VPC has been the lower-risk option at 3.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSSM or VPC?

Over the 1-year period, MSSM has performed better with a 28.25% return vs -19.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSSM or VPC?

MSSM is cheaper with a 0.62% expense ratio, compared with 0.75% for VPC.

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

VPC has the higher dividend yield at 16.45%, compared with 2.68% for MSSM.

What is the main difference between MSSM and VPC?

MSSM is categorized as Small Cap Blend Equities, while VPC is Nontraditional Bonds. They also come from different issuers: Morgan Stanley and Virtus Investment Partners. Their fees differ too: 0.62% for MSSM and 0.75% for VPC.

Which has better risk-adjusted returns?

MSSM currently has the higher Sharpe Ratio (1.60 vs -1.40), 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.