LMSIX vs. SWSSX

Last updated Jun 4, 2026

LMSIX (Franklin U.S. Small Cap Equity Fund) and SWSSX (Schwab Small-Cap Index Fund-Select Shares) are both Small Cap Blend Equities funds. Over the past 10 years, LMSIX returned 11.23%/yr vs 11.20%/yr for SWSSX. With a 0.97 correlation, they move nearly in lockstep. LMSIX charges 1.03%/yr vs 0.04%/yr for SWSSX.

Performance

LMSIX vs. SWSSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin U.S. Small Cap Equity Fund (LMSIX) and Schwab Small-Cap Index Fund-Select Shares (SWSSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LMSIX achieves a 16.18% return, which is significantly lower than SWSSX's 18.71% return. Both investments have delivered pretty close results over the past 10 years, with LMSIX having a 11.23% annualized return and SWSSX not far behind at 11.20%.

LMSIX

• 1D: 1.17%
• 1M: 3.36%
• YTD: 16.18%
• 6M: 15.04%
• 1Y: 41.69%
• 3Y*: 21.49%
• 5Y*: 9.34%
• 10Y*: 11.23%

SWSSX

• 1D: 0.92%
• 1M: 5.00%
• YTD: 18.71%
• 6M: 17.43%
• 1Y: 41.24%
• 3Y*: 18.69%
• 5Y*: 6.65%
• 10Y*: 11.20%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LMSIX vs. SWSSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LMSIX Franklin U.S. Small Cap Equity Fund	16.18%	20.19%	9.90%	18.80%	-15.16%	29.12%	11.29%	20.75%	-15.61%	8.81%
SWSSX Schwab Small-Cap Index Fund-Select Shares	18.71%	12.88%	11.57%	17.07%	-20.43%	14.77%	20.12%	25.63%	-11.19%	14.76%

Correlation

The correlation between LMSIX and SWSSX is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Mar 14, 2000	0.97

The correlation between LMSIX and SWSSX has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

Return for Risk

LMSIX vs. SWSSX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LMSIX

LMSIX Risk / Return Rank: 72
LMSIX Sharpe Ratio Rank: 67
LMSIX Sortino Ratio Rank: 62
LMSIX Omega Ratio Rank: 54
LMSIX Calmar Ratio Rank: 91
LMSIX Martin Ratio Rank: 86

SWSSX

SWSSX Risk / Return Rank: 64
SWSSX Sharpe Ratio Rank: 60
SWSSX Sortino Ratio Rank: 55
SWSSX Omega Ratio Rank: 47
SWSSX Calmar Ratio Rank: 84
SWSSX Martin Ratio Rank: 74

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LMSIX vs. SWSSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin U.S. Small Cap Equity Fund (LMSIX) and Schwab Small-Cap Index Fund-Select Shares (SWSSX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	LMSIX	SWSSX	Difference
Sharpe ratio Return per unit of total volatility	2.39	2.28	+0.11
Sortino ratio Return per unit of downside risk	3.31	3.13	+0.17
Omega ratio Gain probability vs. loss probability	1.41	1.37	+0.03
Calmar ratio Return relative to maximum drawdown	4.76	3.97	+0.79
Martin ratio Return relative to average drawdown	16.58	14.11	+2.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LMSIX vs. SWSSX - Sharpe Ratio Comparison

The current LMSIX Sharpe Ratio is 2.39, which is comparable to the SWSSX Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of LMSIX and SWSSX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LMSIX	SWSSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.39	2.28	+0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.30	+0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	0.47	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.36	-0.02

Drawdowns

LMSIX vs. SWSSX - Drawdown Comparison

The maximum LMSIX drawdown since its inception was -61.16%, roughly equal to the maximum SWSSX drawdown of -60.34%. Use the drawdown chart below to compare losses from any high point for LMSIX and SWSSX.

Drawdown Indicators

	LMSIX	SWSSX	Difference
Max Drawdown Largest peak-to-trough decline	-61.16%	-60.34%	-0.82%
Max Drawdown (1Y) Largest decline over 1 year	-9.22%	-11.00%	+1.78%
Max Drawdown (3Y) Largest decline over 3 years	-26.80%	-27.50%	+0.70%
Max Drawdown (5Y) Largest decline over 5 years	-27.66%	-31.93%	+4.27%
Max Drawdown (10Y) Largest decline over 10 years	-50.26%	-41.81%	-8.45%
Current Drawdown Current decline from peak	0.00%	-0.13%	+0.13%
Average Drawdown Average peak-to-trough decline	-10.89%	-10.73%	-0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.64%	3.09%	-0.45%

Volatility

LMSIX vs. SWSSX - Volatility Comparison

The current volatility for Franklin U.S. Small Cap Equity Fund (LMSIX) is 5.31%, while Schwab Small-Cap Index Fund-Select Shares (SWSSX) has a volatility of 5.61%. This indicates that LMSIX experiences smaller price fluctuations and is considered to be less risky than SWSSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LMSIX	SWSSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.31%	5.61%	-0.30%
Volatility (6M) Calculated over the trailing 6-month period	12.90%	13.60%	-0.70%
Volatility (1Y) Calculated over the trailing 1-year period	18.36%	19.15%	-0.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.95%	22.59%	-0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.50%	24.09%	-0.59%

LMSIX vs. SWSSX - Expense Ratio Comparison

LMSIX has a 1.03% expense ratio, which is higher than SWSSX's 0.04% expense ratio.

Dividends

LMSIX vs. SWSSX - Dividend Comparison

LMSIX's dividend yield for the trailing twelve months is around 5.46%, more than SWSSX's 1.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LMSIX Franklin U.S. Small Cap Equity Fund	5.46%	6.35%	4.05%	3.70%	5.18%	21.64%	3.60%	1.48%	11.17%	8.85%	4.79%	7.52%
SWSSX Schwab Small-Cap Index Fund-Select Shares	1.08%	1.29%	1.66%	1.49%	1.32%	8.88%	2.55%	6.12%	10.45%	5.22%	4.10%	6.92%

Frequently Asked Questions

Can I hold both LMSIX and SWSSX in my portfolio?

With a correlation of 0.96, LMSIX and SWSSX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, LMSIX or SWSSX?

SWSSX has higher volatility (5.61%) compared to LMSIX (5.31%). In terms of maximum drawdown, LMSIX dropped -61.16% vs SWSSX's -60.34%.

Which has better risk-adjusted returns?

LMSIX currently has the higher Sharpe Ratio (2.39 vs 2.28), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.