MSSM - ETF AI Analysis

Top Page

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

Rating:65Neutral

Price Target:―

The Morgan Stanley Pathway Small-Mid Cap Equity ETF (MSSM) has a balanced overall rating, reflecting both strengths and challenges among its holdings. Strong performers like Comfort Systems USA (FIX) and Rambus (RMBS) contribute positively with robust financial performance, strategic growth, and favorable market positioning. However, weaker holdings such as Ascendis Pharma (ASND) and Resideo Technologies (REZI), which face financial and profitability challenges, weigh on the fund's overall rating. A key risk factor is the ETF's exposure to companies with high leverage and valuation concerns, which could impact stability during market downturns.

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)

AUM714.90M

RegionNorth America

Expense Ratio0.57%

Beta1.00

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. Volume23,010

30 Day Avg. Volume29,082

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

60.80

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering2236

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) leans heavily into industrials and technology, with names like Comfort Systems and Rambus driving recent gains thanks to strong revenue growth and strategic positioning. ViaSat has also been a standout, riding positive momentum despite profitability challenges. On the flip side, Ascendis Pharma has been lagging, weighed down by financial instability and weak technical signals. While the fund’s U.S.-focused portfolio captures a diverse range of sectors, its tilt toward innovation and growth-oriented companies makes it particularly sensitive to market sentiment shifts.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ASND	Ascendis Pharma	1.10%	$7.84M	$12.75B	61.58%	46 Neutral
FTAI	FTAI Aviation	1.03%	$7.39M	$24.49B	37.22%	58 Neutral
FTI	TechnipFMC	0.90%	$6.41M	$20.00B	55.96%	80 Outperform
FIX	Comfort Systems	0.80%	$5.71M	$34.27B	120.77%	80 Outperform
VSAT	ViaSat	0.79%	$5.61M	$5.24B	337.51%	56 Neutral
BE	Bloom Energy	0.69%	$4.95M	$28.82B	416.71%	62 Neutral
ORA	Ormat Techno	0.62%	$4.40M	$6.93B	73.47%	71 Outperform
AER	Aercap Holdings	0.62%	$4.40M	$25.98B	56.36%	77 Outperform
REZI	Resideo Technologies	0.59%	$4.24M	$5.52B	67.70%	51 Neutral
WTFC	Wintrust Financial	0.58%	$4.16M	$9.91B	18.79%	78 Outperform

MSSM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

50.36

Positive

100DMA

49.68

Positive

200DMA

46.62

Positive

Market Momentum

MACD

0.57

Negative

RSI

64.81

Neutral

STOCH

93.81

Negative

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 51.53, equal to the 50-day MA of 50.36, and equal to the 200-day MA of 46.62, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 64.81 is Neutral, neither overbought nor oversold. The STOCH value of 93.81 is Negative, 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	―	―	$714.90M	0.57%	―
RSMC	―	―	$721.36M	0.75%	―
GRNJ	―	―	$249.18M	0.75%	―
NBSM	―	―	$209.22M	0.65%	―
SMIZ	―	―	$174.80M	0.56%	―
MGMT	―	―	$160.36M	1.10%	―

Performance Comparison

MSSM

Morgan Stanley Pathway Small-Mid Cap Equity ETF

52.93

7.60

16.77%

RSMC

Rockefeller U.S. Small-Mid Cap ETF

―

GRNJ

Fundstrat Granny Shots US Small- & Mid-Cap ETF

―

NBSM

Neuberger Berman Small-Mid Cap ETF

―

SMIZ

Zacks Small/Mid Cap ETF

―

MGMT

Ballast Small/Mid Cap 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: ―

Table of Contents