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

Mutual Fund · Currency in USD · Last updated Aug 1, 2026
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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 historically moved differently from SWCAX, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.

Best Diversifiers for SWCAX

16 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 0.04, down from 0.23 over 5 years.

How candidates are selected
SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
DCARX
DFA California Municipal Real Return Portfolio0.040.180.23
91
Municipal BondsSWCAX vs DCARX
DMREX
DFA Municipal Real Return Portfolio0.070.220.26
94
Municipal BondsSWCAX vs DMREX
SFLNX
Schwab Fundamental US Large Company Index Fund0.190.130.09
96
Large Cap Value EquitiesSWCAX vs SFLNX
SWPPX
Schwab S&P 500 Index Fund0.190.130.11
63
Large Cap Blend Equities, S&P 500SWCAX vs SWPPX
SNXFX
Schwab 1000 Index Fund0.210.130.11
60
Large Cap Blend EquitiesSWCAX vs SNXFX
See all 39 diversifiers for SWCAX

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Low-Correlation Stock Ideas

The table shows companies with at least $1B in market capitalization, historical correlation data for SWCAX, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is NVIDIA Corporation (NVDA) (Technology) with a 1Y correlation of -0.04, roughly unchanged from 0.03 over 5 years.

How candidates are selected
SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankSector
NVDA
NVIDIA Corporation-0.04-0.010.03
56
Technology
AAPL
Apple Inc0.090.070.08
89
Technology

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Diversification Analysis

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