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MSSM - ETF AI Analysis

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MSSM

Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM)

Rating:64Neutral
Price Target:
MSSM, the Morgan Stanley Pathway Small-Mid Cap Equity ETF, has a solid overall rating driven mainly by strong, diversified holdings like TechnipFMC (FTI), Dynatrace (DT), Plexus (PLXS), KBR, Regal Rexnord (RRX), and Veeco (VECO), which show healthy financial performance, positive earnings calls, and generally supportive technical trends. However, weaker names such as Ascendis Pharma (ASND), SanDisk (SNDK), FTAI, and ViaSat (VSAT) face issues like high leverage, negative cash flows, and valuation concerns that weigh on the fund’s score. The main risk factor is exposure to several companies with financial instability and profitability challenges, which could add volatility even though the overall mix of holdings is relatively strong.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and over the past month, showing solid recent momentum.
Leading Holdings With Strong Gains
Several of the top positions, including companies in technology and industrials, have posted strong year-to-date gains that support the fund’s overall results.
Broad Sector Diversification
The fund spreads its investments across many sectors such as industrials, technology, health care, and financials, which helps reduce the impact if any one industry struggles.
Negative Factors
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns go toward fees instead of staying with investors.
Heavy U.S. Concentration
With the vast majority of its holdings in U.S. companies, the ETF offers limited geographic diversification and is heavily tied to the U.S. market.
Small-Mid Cap Volatility Risk
Because the ETF focuses on small- and mid-sized companies, its share price may be more volatile and sensitive to market swings than large-cap funds.

MSSM vs. SPDR S&P 500 ETF (SPY)

MSSM Summary

The Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) focuses on smaller and mid-sized U.S. companies, aiming to tap into the growth potential of the “extended market” beyond the big, well-known large caps. It doesn’t track a set index, but instead is actively managed to pick a mix of industrial, technology, and health care names such as Bloom Energy and Ciena. Investors might consider MSSM to seek higher long-term growth and add diversification to a portfolio that’s heavy in large companies. However, small and mid-cap stocks can be more volatile, so the share price can move up and down more sharply than the overall market.
How much will it cost me?The Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has an expense ratio of 0.57%, which means you’ll pay $5.70 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on small to mid-sized companies that require more research and oversight compared to passively managed ETFs.
What would affect this ETF?The MSSM ETF, with its focus on small to mid-cap U.S. companies, could benefit from economic growth and innovation in sectors like technology and industrials, which make up a significant portion of its holdings. However, it may face challenges from rising interest rates, which can increase borrowing costs for smaller companies, and economic slowdowns that disproportionately impact less established businesses. Regulatory changes or sector-specific disruptions could also influence the performance of its top holdings.

MSSM Top 10 Holdings

MSSM leans heavily into U.S. small and mid-cap innovators, with tech and industrial names setting the tone. Rising standouts like SanDisk, Credo Technology, and Veeco are doing much of the heavy lifting, helped by upbeat earnings and solid momentum. Comfort Systems and Plexus add a steady industrial backbone, quietly supporting returns. On the flip side, Ascendis Pharma and ViaSat have been more mixed, with profitability and leverage issues occasionally tripping up the fund. Overall, the ETF’s story is a tech-tilted, domestically focused bet on emerging growth leaders.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Ascendis Pharma1.00%$7.46M$17.12B52.24%
46
Neutral
SanDisk Corp0.96%$7.19M$258.42B3678.28%
55
Neutral
FTAI Aviation0.84%$6.25M$25.45B116.65%
58
Neutral
TechnipFMC0.80%$5.96M$26.61B92.78%
80
Outperform
ViaSat0.80%$5.96M$11.34B426.05%
56
Neutral
Veeco0.65%$4.85M$3.51B150.12%
70
Neutral
Regal Rexnord0.63%$4.74M$14.54B41.54%
69
Neutral
Plexus0.58%$4.35M$7.36B87.67%
75
Outperform
Dynatrace0.57%$4.29M$13.05B-19.63%
77
Outperform
KBR0.56%$4.19M$4.62B-22.57%
73
Outperform

MSSM Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
58.98
Positive
100DMA
56.34
Positive
200DMA
53.68
Positive
Market Momentum
MACD
0.53
Positive
RSI
48.38
Neutral
STOCH
35.18
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MSSM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 60.33, equal to the 50-day MA of 58.98, and equal to the 200-day MA of 53.68, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 35.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MSSM.

MSSM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$723.18M0.62%
64
Neutral
$774.79M0.75%
69
Neutral
$496.83M0.75%
70
Outperform
$276.75M0.55%
68
Neutral
$176.04M1.10%
67
Neutral
$163.29M0.68%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MSSM
Morgan Stanley Pathway Small-Mid Cap Equity ETF
59.73
13.20
28.37%
RSMC
Rockefeller U.S. Small-Mid Cap ETF
GRNJ
Fundstrat Granny Shots US Small- & Mid-Cap ETF
SMIZ
Zacks Small/Mid Cap ETF
MGMT
Ballast Small/Mid Cap ETF
RNIN
Bushido Capital US SMID Cap Equity ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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