At a glance
MSLC charges 0.39% a year, above the 0.06% average of the 8 funds most like it (the most expensive of 9). It has $4.07B in assets, the 7th largest of that group; it paid 1.93% of its price in distributions over the past 12 months, annual. Over the past year it returned +10.9% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds. Its ten largest positions make up 35.1% of the fund, out of 787 in all.
The short version
Morgan Stanley Pathway Large Cap Equity ETF (MSLC) is an actively managed fund that splits its money among several outside managers who pick stocks of large US companies, holding 787 of them as of August 31, 2026. Its net expense ratio of 0.39% is far above the 0.06% average of similar index funds, and its 1-year return trailed all eight of them as of October 27, 2026.
Price history
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MSLC +10.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MSLC official prospectus, to Dec 31, 2024 | — | +21.85% | — | +12.23% | +11.25% | — |
| MSLC price data to Oct 27, 2026 | +11.4% | +10.9% | — | — | — | +12.4% |
- Over the year to Oct 27, 2026, MSLC returned +10.9%, 9th of 9 among similar funds.
- Its worst full calendar year was 2025 (+15.7%); its best was 2025 (+15.7%).
- The deepest fall in its price history was 17.9% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 26, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.4% | — |
| 2025 | +15.7% | — |
| 2024 | — | +21.85% |
| 2023 | — | +24.67% |
| 2022 | — | -20.15% |
| 2021 | — | +23.66% |
| 2020 | — | +18.68% |
| 2019 | — | +29.08% |
| 2018 | — | -4.83% |
| 2017 | — | +20.49% |
| 2016 | — | +6.19% |
| 2015 | — | +3.75% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $1.1700 |
What's inside
As of Aug 31, 2026, the fund held 787 securities; the ten largest made up 35.07% of assets.
| Holding | Weight | |
|---|---|---|
| NVIDIA CORP | 6.99% | |
| MICROSOFT CORP | 5.73% | |
| APPLE INC | 5.49% | |
| AMAZON.COM INC | 4.06% | |
| ALPHABET INC-CL A | 3.21% | |
| BROADCOM INC | 2.48% | |
| META PLATFORMS INC-CLASS A | 2.02% | |
| ALPHABET INC-CL C | 1.93% | |
| JPMORGAN CHASE & CO | 1.60% | |
| MICRON TECHNOLOGY INC | 1.56% | |
| VISA INC-CLASS A SHARES | 1.23% | |
| BERKSHIRE HATHAWAY INC-CL B | 1.14% | |
| ELI LILLY & CO | 1.09% | |
| EXXONMOBIL HOLDINGS CORP | 1.03% | |
| TESLA INC | 0.99% |
By country
United States 96.68%Canada 0.85%Ireland 0.58%Denmark 0.25%Sweden 0.2%By asset type
Stocks 97.48%Real estate 1.65%Other 0%By sector
Sectors of the companies held, for the 86.1% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $18.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.01%, +0.66%, +2.54%.
How it works
MSLC does not track an index. Its goal is capital appreciation, meaning growth in the value of the investment. Under normal conditions, it puts at least 80% of its net assets in stocks of large companies. It defines large companies as those whose market value falls within the range of the Russell 1000 Index, a benchmark of about the 1,000 largest US stocks.
Morgan Stanley, as manager, uses a "multi-manager" approach. It divides the fund's assets among several professional money managers, called sub-advisers, and each one picks stocks for its own slice. The prospectus sets no fixed weighting formula, so how much the fund holds of each company depends on those managers' choices. As of August 31, 2026, the result looked a lot like the broad market. NVIDIA (7.0%), Microsoft (5.7%), Apple (5.5%), Alphabet (5.1% across two share classes) and Amazon (4.1%) were the largest positions, and the top 10 made up 35% of assets.
Trading is modest. Portfolio turnover was 13%, so the fund replaced roughly that share of its holdings over a year. It may put up to 10% of assets in foreign stocks that don't trade in the US. It may also lend its securities to other investors for extra income, which carries a small risk if a borrower fails. It held no derivatives as of August 31, 2026.
What it really costs
- MSLC charges 0.39% a year, versus an average of 0.06% for the similar funds below (9th of 9, cheapest first).
- Of that, 0.55% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.24% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $242 in the first year and $2,946 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MSLC | $242 | $795 | $1,374 | $2,946 |
In a retirement portfolio
It holds 787 large US companies across every major sector, so it could serve as a portfolio's main US stock position, though it costs more than index alternatives.
MSLC's ETF shares have traded only since December 9, 2024, so they missed the 2008, 2020 and 2022 sell-offs. The prospectus record, which goes back to 2015, shows a 20.15% loss in 2022 and a 21.39% drop in the first quarter of 2020. The ETF's own deepest decline was 17.9%, from February 19 to April 8, 2025. It recovered by June 26, 2025, about 2.6 months later. Anyone who had to sell during a drop like that would lock in the loss.
Income is modest: the yield was 1.93% as of October 27, 2026, paid once a year. Over decades, the 0.39% expense ratio adds up compared with the 0.06% average of similar funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want broad large-cap US stock exposure (787 holdings as of August 31, 2026) chosen by several active managers rather than by an index.
- Those who prefer spreading stock-picking across multiple sub-advisers with different styles instead of relying on a single manager's judgment.
- Long-term holders who can ride out stock swings: the prospectus shows a 20.15% loss in 2022, and the ETF fell 17.9% in early 2025.
Look elsewhere if
- Cost-focused investors: the 0.39% net expense ratio compares with 0.03% for VOO and IVV, and MSLC's 1-year return trailed all eight similar funds.
- People who need regular income: the 1.93% yield as of October 27, 2026, is paid only once a year.
- Investors wanting a long ETF trading record or fixed costs: the ETF launched in December 2024, and its 0.39% cost relies on a 0.24% fee waiver.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| MSLC this fund | — | 0.39% | $4.07B | +10.9% | — |
| BKLC BNY Mellon US Large Cap Core Equity ETF | 82% | 0% | $5.47B | +13.4% | +25.4% |
| VTHR Vanguard Russell 3000 ETF | 80% | 0.07% | $6.41B | +13.1% | +24.5% |
| USPX Franklin U.S. Equity Index ETF | 79% | 0.03% | $1.98B | +12.9% | +24.9% |
| SPY SPDR S&P 500 ETF Trust | 79% | 0.0945% | $781.19B | +11.5% | +21.9% |
| IVV iShares Core S&P 500 ETF | 79% | 0.03% | $888.13B | +11.5% | +22.0% |
| VOO Vanguard S&P 500 ETF | 79% | 0.03% | $1.67T | +12.4% | +23.6% |
| SPYX SPDR S&P 500 Fossil Fuel Reserves Free ETF | 78% | 0.2% | $2.74B | +12.6% | +24.8% |
Questions investors ask
Is MSLC an index fund?
No. MSLC is actively managed. Morgan Stanley divides the fund's assets among several outside managers, called sub-advisers, and each picks stocks for its own portion. The fund uses the Russell 1000 Index only to define what counts as a large company, not as a list to copy. In practice, its holdings overlap heavily with index funds: 79% with VOO and 82% with BNY Mellon US Large Cap Core Equity ETF (BKLC), based on the latest holdings reports.
What is the expense ratio of MSLC?
MSLC's net expense ratio is 0.39%, according to its prospectus filed December 29, 2025. That figure comes after a fee waiver of 0.24%; the management fee alone is 0.55%. If the waiver ended, costs would rise. The average expense ratio of eight similar funds is 0.06%, and MSLC ranks ninth of nine on cost. For comparison, VOO, IVV and ITOT each charge 0.03%, and BKLC charges 0%.
MSLC vs VOO: what's the difference?
VOO tracks the S&P 500 index for 0.03% a year. MSLC is actively run by several sub-advisers for 0.39%. Their holdings overlap by 79%, so they often move alike. Over the past year, MSLC returned 10.9% as of October 27, 2026, while VOO returned 13.2% as of October 29, 2026. The fund with the most overlap is BKLC, at 82%. BKLC charges 0% and returned 13.4% over one year as of October 27, 2026.
Does MSLC pay dividends?
Yes, but only once a year. Over the 12 months to October 27, 2026, MSLC paid $1.17 per share, a trailing yield of 1.93%. Because the fund owns large US companies, much of that income comes from stock dividends. The fund may also earn a little extra by lending its securities. Investors who want monthly or quarterly payments would need to look at other funds or set up their own withdrawals.
How has MSLC performed over the long term?
The prospectus reports average annual returns of 21.85% over one year, 12.23% over five years and 11.25% over 10 years, as of December 31, 2024. That record is longer than the ETF's own trading history, which began December 9, 2024. As an ETF, it returned 15.67% in 2025 and 11.4% in 2026 through October 27. Over the year to October 27, 2026, it returned 10.9%, the lowest of nine similar funds.