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MSSM vs PHEQ

Morgan Stanley Pathway Small-Mid Cap Equity ETF vs Parametric Hedged Equity ETF

MSSM

Morgan Stanley Pathway Small-Mid Cap Equity ETF

Annual cost

0.62%

Fund size

$756M

PHEQ

Parametric Hedged Equity ETF

Annual cost

0.29%

Fund size

$138M

Key differences

MSSM is an equity ETF, while PHEQ is an alternative ETF. MSSM charges 0.62% a year and PHEQ 0.29%.

  • MSSM is an equity fund, while PHEQ is an alternative fund. They carry different risk/return profiles.
  • MSSM follows a index tracking strategy; PHEQ uses option income.
  • MSSM covers global markets; PHEQ covers North America.
  • PHEQ costs 0.33% less per year.
  • MSSM is much larger than PHEQ. Larger funds are usually more liquid and less likely to close.
  • MSSM has a longer track record, which may reduce uncertainty around long-term behavior.

Side-by-side comparison

MSSMPHEQ
Annual cost (TER)0.62%0.29%
Fund size (AUM)$756M$138M
Since19912023
Dividend yield0.53%1.03%
Asset classequityalternative
Regionglobalnorth america
Strategyindex trackingoption income
CAGR 1Y+32.8%+15.5%
CAGR 3YN/AN/A
CAGR 5YN/AN/A
Sharpe 3YN/AN/A
Volatility 1Y17.51%6.19%
Max drawdown-24.09%-12.55%

Similar to MSSM and PHEQ