MSSM - ETF AI Analysis

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

Rating:63Neutral

Price Target:―

The Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has a moderate overall rating, reflecting a mix of strengths and challenges among its holdings. Strong contributors like TechnipFMC and Rambus drive the fund’s rating with their robust financial performance and strategic positioning, particularly in growth areas like AI and energy. However, weaker holdings such as Ascendis Pharma and ViaSat, which face profitability challenges and bearish momentum, have held back the ETF’s score. Investors should note the fund's exposure to companies with high leverage and valuation concerns, which could pose risks in volatile market conditions.

Positive Factors

Strong Top Holdings

Several top holdings, such as Bloom Energy and ViaSat, have delivered strong year-to-date performance, boosting the ETF's returns.

Sector Diversification

The ETF is spread across multiple sectors, including Industrials, Technology, and Health Care, reducing reliance on any single industry.

Healthy Year-to-Date Performance

The ETF has shown solid year-to-date growth, indicating strong overall momentum in its portfolio.

Negative Factors

High Geographic Concentration

With over 96% exposure to U.S. companies, the ETF lacks significant global diversification.

Moderate Expense Ratio

The expense ratio of 0.57% is higher than some low-cost ETFs, which could slightly reduce investor returns over time.

Underweight Defensive Sectors

The ETF has minimal exposure to defensive sectors like Consumer Defensive and Utilities, which could make it more sensitive to market downturns.

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

AUM689.99M

RegionNorth America

Expense Ratio0.57%

Beta0.99

IssuerMorgan Stanley

Inception DateDec 09, 2024

Dividend YieldN/A

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume20,696

30 Day Avg. Volume23,038

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

61.02

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering2247

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

MSSM Summary

The Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) focuses on small and mid-sized companies, offering investors a chance to benefit from the growth potential of businesses that are often overlooked in larger market indices. This ETF includes companies like Comfort Systems and Ascendis Pharma, which are leaders in their respective industries. MSSM is ideal for investors seeking diversification and exposure to innovative, high-growth businesses across sectors like technology, healthcare, and industrials. However, new investors should be aware that small and mid-cap stocks can be more volatile than larger companies, meaning their prices can rise and fall more dramatically.

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

The Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) is leaning heavily into industrials and technology, with names like Comfort Systems and Rambus driving the fund’s recent momentum. Comfort Systems is rising on strong earnings and growth, while Rambus benefits from its strategic positioning in AI. However, laggards like ViaSat and Bloom Energy are holding back performance, weighed down by profitability challenges and bearish technical signals. With its U.S.-focused portfolio and a tilt toward innovation-heavy sectors, MSSM offers a dynamic but uneven ride for investors seeking growth beyond the large-cap universe.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ASND	Ascendis Pharma	1.12%	$7.71M	$13.47B	69.72%	46 Neutral
FIX	Comfort Systems	1.09%	$7.51M	$34.14B	109.36%	77 Outperform
FTI	TechnipFMC	0.86%	$5.94M	$18.74B	49.42%	80 Outperform
FTAI	FTAI Aviation	0.81%	$5.58M	$18.15B	34.32%	58 Neutral
VSAT	ViaSat	0.78%	$5.39M	$4.85B	283.82%	56 Neutral
RMBS	Rambus	0.70%	$4.85M	$10.14B	64.14%	78 Outperform
ORA	Ormat Techno	0.63%	$4.34M	$6.89B	56.34%	71 Outperform
RRX	Regal Rexnord	0.60%	$4.12M	$9.97B	-11.08%	69 Neutral
AER	Aercap Holdings	0.59%	$4.10M	$24.64B	45.87%	77 Outperform
REZI	Resideo Technologies	0.59%	$4.07M	$5.42B	38.18%	51 Neutral

MSSM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

49.74

Positive

100DMA

48.83

Positive

200DMA

45.88

Positive

Market Momentum

MACD

0.64

Negative

RSI

59.38

Neutral

STOCH

51.22

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MSSM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 49.90, equal to the 50-day MA of 49.74, and equal to the 200-day MA of 45.88, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 51.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSSM.

MSSM Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
MSSM	―	―	$689.99M	0.57%	―
RSMC	―	―	$731.18M	0.75%	―
NBSM	―	―	$203.75M	0.65%	―
SMIZ	―	―	$169.54M	0.56%	―
MGMT	―	―	$158.15M	1.10%	―
SMCO	―	―	$140.64M	0.55%	―

Performance Comparison

MSSM

Morgan Stanley Pathway Small-Mid Cap Equity ETF

51.39

3.71

7.78%

RSMC

Rockefeller U.S. Small-Mid Cap ETF

―

NBSM

Neuberger Berman Small-Mid Cap ETF

―

SMIZ

Zacks Small/Mid Cap ETF

―

MGMT

Ballast Small/Mid Cap ETF

―

SMCO

Hilton Small-MidCap Opportunity 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.

Disclaimer

This 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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