VPC vs. MSSM

Last updated Jun 4, 2026

VPC (Virtus Private Credit ETF) and MSSM (Morgan Stanley Pathway Small-Mid Cap Equity ETF) are both exchange-traded funds - VPC is a Nontraditional Bonds fund tracking the Indxx Private Credit Index, while MSSM is a Small Cap Blend Equities fund actively managed by Morgan Stanley. VPC is passively managed, while MSSM is actively managed. Over the past year, VPC returned -12.88% vs 35.45% for MSSM. A 0.51 correlation means they provide meaningful diversification when combined. VPC charges 0.75%/yr vs 0.62%/yr for MSSM.

Performance

VPC vs. MSSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Private Credit ETF (VPC) 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, VPC achieves a -9.26% return, which is significantly lower than MSSM's 17.34% return.

VPC

• 1D: -1.89%
• 1M: -5.24%
• YTD: -9.26%
• 6M: -10.18%
• 1Y: -12.88%
• 3Y*: 2.85%
• 5Y*: 1.17%
• 10Y*: —

MSSM

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

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

VPC vs. MSSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VPC Virtus Private Credit ETF	-9.26%	-6.75%	-1.45%
MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF	17.34%	11.33%	-5.83%

Correlation

The correlation between VPC and MSSM is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (All Time) Calculated using the full available price history since Dec 10, 2024	0.51

The correlation between VPC and MSSM has been stable across timeframes, ranging from 0.48 to 0.51 - a consistent structural relationship.

Return for Risk

VPC vs. MSSM — Risk / Return Rank

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

VPC

VPC Risk / Return Rank: 3
VPC Sharpe Ratio Rank: 1
VPC Sortino Ratio Rank: 2
VPC Omega Ratio Rank: 2
VPC Calmar Ratio Rank: 4
VPC Martin Ratio Rank: 3

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

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.

VPC vs. MSSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Private Credit ETF (VPC) 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.

	VPC	MSSM	Difference
Sharpe ratio: Return per unit of total volatility	-0.98	2.07	-3.05
Sortino ratio: Return per unit of downside risk	-1.33	2.90	-4.23
Omega ratio: Gain probability vs. loss probability	0.85	1.35	-0.50
Calmar ratio: Return relative to maximum drawdown	-0.57	3.75	-4.32
Martin ratio: Return relative to average drawdown	-1.13	14.47	-15.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VPC vs. MSSM - Sharpe Ratio Comparison

The current VPC Sharpe Ratio is -0.98, which is lower than the MSSM Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of VPC 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.

Sharpe Ratios by Period

	VPC	MSSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.98	2.07	-3.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.09	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.20	0.73	-0.53

Drawdowns

VPC vs. MSSM - Drawdown Comparison

The maximum VPC drawdown since its inception was -53.45%, which is greater than MSSM's maximum drawdown of -24.18%. Use the drawdown chart below to compare losses from any high point for VPC and MSSM.

Drawdown Indicators

	VPC	MSSM	Difference
Max Drawdown Largest peak-to-trough decline	-53.45%	-24.18%	-29.27%
Max Drawdown (1Y) Largest decline over 1 year	-22.76%	-9.50%	-13.26%
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	-19.63%	-0.79%	-18.84%
Average Drawdown Average peak-to-trough decline	-7.67%	-4.67%	-3.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.45%	2.46%	+8.99%

Volatility

VPC vs. MSSM - Volatility Comparison

The current volatility for Virtus Private Credit ETF (VPC) is 3.27%, while Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has a volatility of 5.05%. This indicates that VPC 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

	VPC	MSSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.27%	5.05%	-1.78%
Volatility (6M) Calculated over the trailing 6-month period	10.85%	12.76%	-1.91%
Volatility (1Y) Calculated over the trailing 1-year period	13.17%	17.27%	-4.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.50%	20.91%	-7.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.56%	20.91%	-0.35%

VPC vs. MSSM - Expense Ratio Comparison

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

Dividends

VPC vs. MSSM - Dividend Comparison

VPC's dividend yield for the trailing twelve months is around 17.30%, more than MSSM's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
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%
VPC Virtus Private Credit ETF	17.30%	14.33%	11.26%	11.71%	10.74%	6.31%	10.06%	8.19%

Frequently Asked Questions

Can I hold both VPC and MSSM in my portfolio?

VPC and MSSM have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPC or MSSM?

MSSM has higher volatility (5.05%) compared to VPC (3.27%). In terms of maximum drawdown, VPC dropped -53.45% vs MSSM's -24.18%.

Which ETF is better, VPC or MSSM?

On 1-year performance, MSSM leads with 35.45% vs -12.88% for VPC. On fees, MSSM is cheaper at 0.62% per year. On volatility, VPC has been the lower-risk option at 3.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPC or MSSM?

Over the 1-year period, MSSM has performed better with a 35.45% return vs -12.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPC or MSSM?

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

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

VPC has the higher dividend yield at 17.30%, compared with 2.69% for MSSM.

What is the main difference between VPC and MSSM?

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

Which has better risk-adjusted returns?

MSSM currently has the higher Sharpe Ratio (2.07 vs -0.98), 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.