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Schwab California Tax-Free Bond Fund™ (SWCAX) Diversifiers

Mutual Fund · Currency in USD · Last updated Jun 23, 2026

The investment seeks high current income exempt from federal and California personal income tax that is consistent with capital preservation. To pursue its goal, the fund primarily invests in investment-grade municipal securities - those in the four highest credit rating categories (rated AAA to BBB- or the unrated equivalent as determined by the investment adviser) from California issuers. The fund normally invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in municipal securities the interest from which is exempt from federal and California personal income tax and federal alternative minimum tax.

Looking to diversify beyond SWCAX? The mutual funds below have the lowest correlation with SWCAX — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from SWCAX.

Best Diversifiers for SWCAX

17 mutual funds have low correlation with SWCAX (below 0.3), 0 of which are negatively correlated. The least correlated is DFA California Municipal Real Return Portfolio (DCARX) (Municipal Bonds) with a 1Y correlation of 0.02, down from 0.23 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
DCARX
DFA California Municipal Real Return Portfolio0.020.200.23
95
Municipal BondsSWCAX vs DCARX
DMREX
DFA Municipal Real Return Portfolio0.070.230.25
94
Municipal BondsSWCAX vs DMREX
SWPPX
Schwab S&P 500 Index Fund0.170.130.10
66
Large Cap Blend Equities, S&P 500SWCAX vs SWPPX
SNXFX
Schwab 1000 Index Fund0.180.130.10
63
Large Cap Blend EquitiesSWCAX vs SNXFX
SWSSX
Schwab Small-Cap Index Fund-Select Shares0.180.130.11
69
Small Cap Blend EquitiesSWCAX vs SWSSX
See all 36 diversifiers for SWCAX

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Low-Correlation Stock Ideas

If you're looking for individual stocks that move independently from SWCAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SWCAX and solid risk/return profiles. The least correlated is NVIDIA Corporation (NVDA) (Technology) with a 1Y correlation of -0.03, roughly unchanged from 0.04 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankSector
NVDA
NVIDIA Corporation-0.03-0.000.04
76
Technology
AAPL
Apple Inc0.080.070.07
88
Technology

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Diversification Analysis

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