OVS vs. MSSM

Last updated Jun 19, 2026

OVS (Overlay Shares Small Cap Equity ETF) and MSSM (Morgan Stanley Pathway Small-Mid Cap Equity ETF) are both Small Cap Blend Equities funds. Both are actively managed. Over the past year, OVS returned 40.98% vs 37.31% for MSSM. Their correlation of 0.95 suggests significant overlap in exposure. OVS charges 0.83%/yr vs 0.62%/yr for MSSM.

Performance

OVS vs. MSSM - Performance Comparison

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

Returns By Period

In the year-to-date period, OVS achieves a 21.64% return, which is significantly higher than MSSM's 19.53% return.

OVS

• 1D: 2.01%
• 1M: 7.82%
• YTD: 21.64%
• 6M: 20.11%
• 1Y: 40.98%
• 3Y*: 16.51%
• 5Y*: 7.56%
• 10Y*: —

MSSM

• 1D: 1.54%
• 1M: 7.62%
• YTD: 19.53%
• 6M: 19.50%
• 1Y: 37.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

OVS vs. MSSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
OVS Overlay Shares Small Cap Equity ETF	21.64%	6.15%	-7.68%
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	19.53%	11.33%	-7.04%

Correlation

The correlation between OVS and MSSM is 0.94, 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	0.94
Correlation (All Time) Calculated using the full available price history since Dec 9, 2024	0.95

The correlation between OVS and MSSM has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.

Return for Risk

OVS vs. MSSM — Risk / Return Rank

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

OVS

OVS Risk / Return Rank: 75
OVS Sharpe Ratio Rank: 70
OVS Sortino Ratio Rank: 70
OVS Omega Ratio Rank: 63
OVS Calmar Ratio Rank: 88
OVS Martin Ratio Rank: 83

MSSM

MSSM Risk / Return Rank: 72
MSSM Sharpe Ratio Rank: 69
MSSM Sortino Ratio Rank: 69
MSSM Omega Ratio Rank: 62
MSSM Calmar Ratio Rank: 80
MSSM Martin Ratio Rank: 81

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.

OVS vs. MSSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Small Cap Equity ETF (OVS) and Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM). 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.

	OVS	MSSM	Difference
Sharpe ratio: Return per unit of total volatility	2.12	2.11	0.00
Sortino ratio: Return per unit of downside risk	2.97	2.93	+0.04
Omega ratio: Gain probability vs. loss probability	1.36	1.36	0.00
Calmar ratio: Return relative to maximum drawdown	4.84	3.95	+0.89
Martin ratio: Return relative to average drawdown	15.72	15.12	+0.60

OVS vs. MSSM - Sharpe Ratio Comparison

The current OVS Sharpe Ratio is 2.12, which is comparable to the MSSM Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of OVS and MSSM, 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

OVS vs. MSSM - Drawdown Comparison

The maximum OVS drawdown since its inception was -45.09%, which is greater than MSSM's maximum drawdown of -25.16%. Use the drawdown chart below to compare losses from any high point for OVS and MSSM.

Drawdown Indicators

	OVS	MSSM	Difference
Max Drawdown Largest peak-to-trough decline	-45.09%	-25.16%	-19.93%
Max Drawdown (1Y) Largest decline over 1 year	-8.51%	-9.50%	+0.99%
Max Drawdown (3Y) Largest decline over 3 years	-30.49%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-30.49%	—	—
Current Drawdown Current decline from peak	-0.02%	-0.22%	+0.20%
Average Drawdown Average peak-to-trough decline	-11.29%	-5.12%	-6.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.61%	2.47%	+0.14%

Volatility

OVS vs. MSSM - Volatility Comparison

The current volatility for Overlay Shares Small Cap Equity ETF (OVS) is 5.52%, while Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has a volatility of 6.05%. This indicates that OVS experiences smaller price fluctuations and is considered to be less risky than MSSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OVS	MSSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.52%	6.05%	-0.53%
Volatility (6M) Calculated over the trailing 6-month period	13.44%	13.36%	+0.08%
Volatility (1Y) Calculated over the trailing 1-year period	19.46%	17.73%	+1.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.25%	21.01%	+2.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.44%	21.01%	+6.43%

OVS vs. MSSM - Expense Ratio Comparison

OVS has a 0.83% expense ratio, which is higher than MSSM's 0.62% expense ratio.

Dividends

OVS vs. MSSM - Dividend Comparison

OVS's dividend yield for the trailing twelve months is around 6.60%, more than MSSM's 2.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	2.64%	3.15%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
OVS Overlay Shares Small Cap Equity ETF	6.60%	3.69%	4.08%	3.19%	3.43%	4.05%	1.74%	0.54%

Frequently Asked Questions

Can I hold both OVS and MSSM in my portfolio?

With a correlation of 0.94, OVS and MSSM 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, OVS or MSSM?

MSSM has higher volatility (6.05%) compared to OVS (5.52%). In terms of maximum drawdown, OVS dropped -45.09% vs MSSM's -25.16%.

Which ETF is better, OVS or MSSM?

On 1-year performance, OVS leads with 40.98% vs 37.31% for MSSM. On fees, MSSM is cheaper at 0.62% per year. On volatility, OVS has been the lower-risk option at 5.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVS or MSSM?

Over the 1-year period, OVS has performed better with a 40.98% return vs 37.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVS or MSSM?

MSSM is cheaper with a 0.62% expense ratio, compared with 0.83% for OVS.

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

OVS has the higher dividend yield at 6.60%, compared with 2.64% for MSSM.

What is the main difference between OVS and MSSM?

They also come from different issuers: Liquid Strategies and Morgan Stanley. Their fees differ too: 0.83% for OVS and 0.62% for MSSM.

Which has better risk-adjusted returns?

OVS currently has the higher Sharpe Ratio (2.12 vs 2.11), 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.