LMSIX vs. SWSSX

Last updated Aug 1, 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 11.14%/yr vs 10.73%/yr for SWSSX. Their 0.97 correlation means they have historically moved very closely together. 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

The year-to-date returns for both stocks are quite close, with LMSIX having a 19.73% return and SWSSX slightly lower at 19.46%. Both investments have delivered pretty close results over the past 10 years, with LMSIX having a 11.14% annualized return and SWSSX not far behind at 10.73%.

LMSIX

• 1D: 1.15%
• 1M: -0.16%
• 6M: 14.39%
• YTD: 19.73%
• 1Y: 40.26%
• 3Y*: 18.86%
• 5Y*: 11.07%
• 10Y*: 11.14%
• ALL TIME*: 8.13%

SWSSX

• 1D: 1.36%
• 1M: -1.63%
• 6M: 13.40%
• YTD: 19.46%
• 1Y: 37.67%
• 3Y*: 15.35%
• 5Y*: 7.26%
• 10Y*: 10.73%
• ALL TIME*: 8.56%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
LMSIX Franklin U.S. Small Cap Equity Fund	$0.00	$0.00	$0.00
SWSSX Schwab Small-Cap Index Fund-Select Shares	$0.00	$0.00	$0.00

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	19.73%	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	19.46%	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 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.97
Correlation (3Y) Balances recent behavior with more history.	0.97
Correlation (5Y) Shows whether the relationship held over a longer period.	0.98
Correlation (10Y) Provides a long-term view across more market conditions.	0.98
Correlation (All Time) Calculated using the full available price history since Mar 13, 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 historical risk-adjusted metric ranks over the past 12 months.

LMSIX

LMSIX Risk / Return Rank: 86
LMSIX Sharpe Ratio Rank: 83
LMSIX Sortino Ratio Rank: 81
LMSIX Omega Ratio Rank: 76
LMSIX Calmar Ratio Rank: 94
LMSIX Martin Ratio Rank: 93

SWSSX

SWSSX Risk / Return Rank: 79
SWSSX Sharpe Ratio Rank: 76
SWSSX Sortino Ratio Rank: 75
SWSSX Omega Ratio Rank: 69
SWSSX Calmar Ratio Rank: 88
SWSSX Martin Ratio Rank: 87

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LMSIX	SWSSX	Difference
Sharpe ratio: Return per unit of total volatility	2.00	1.74	+0.26
Sortino ratio: Return per unit of downside risk	2.84	2.48	+0.36
Omega ratio: Gain probability vs. loss probability	1.34	1.29	+0.05
Calmar ratio: Return relative to maximum drawdown	4.06	3.07	+0.99
Martin ratio: Return relative to average drawdown	14.06	10.90	+3.16

LMSIX vs. SWSSX - Sharpe Ratio Comparison

The current LMSIX Sharpe Ratio is 2.00, which is comparable to the SWSSX Sharpe Ratio of 1.74. 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.

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	-1.29%	-2.54%	+1.25%
Average Drawdown Average peak-to-trough decline	-10.82%	-10.67%	-0.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.66%	3.10%	-0.44%

Volatility

LMSIX vs. SWSSX - Volatility Comparison

Franklin U.S. Small Cap Equity Fund (LMSIX) and Schwab Small-Cap Index Fund-Select Shares (SWSSX) have volatilities of 3.88% and 3.83%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. 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	3.88%	3.83%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	13.52%	14.14%	-0.62%
Volatility (1Y) Calculated over the trailing 1-year period	18.70%	19.42%	-0.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.87%	22.56%	-0.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.45%	24.07%	-0.62%

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 6.73%, 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	6.73%	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?

LMSIX has higher volatility (3.88%) compared to SWSSX (3.83%). 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 (2.00 vs 1.74), 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.