MSTBX vs. SWSBX

Last updated Apr 1, 2026

Compare and contrast key facts about Morningstar Defensive Bond Fund (MSTBX) and Schwab Short-Term Bond Index Fund (SWSBX).

MSTBX is managed by Morningstar. It was launched on Nov 2, 2018. SWSBX is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Government/Credit 1-5 Year Index. It was launched on Feb 23, 2017.

Performance

MSTBX vs. SWSBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morningstar Defensive Bond Fund (MSTBX) and Schwab Short-Term Bond Index Fund (SWSBX). The values are adjusted to include any dividend payments, if applicable.

MSTBX vs. SWSBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
MSTBX Morningstar Defensive Bond Fund	-0.20%	5.19%	4.52%	7.16%	-4.73%	0.84%	4.75%	3.53%	0.39%
SWSBX Schwab Short-Term Bond Index Fund	-0.27%	6.06%	3.42%	3.95%	-5.89%	-1.28%	4.47%	4.96%	1.53%

Returns By Period

In the year-to-date period, MSTBX achieves a -0.20% return, which is significantly higher than SWSBX's -0.27% return.

MSTBX

• 1D: 0.41%
• 1M: -1.01%
• YTD: -0.20%
• 6M: 0.32%
• 1Y: 2.85%
• 3Y*: 4.89%
• 5Y*: 2.48%
• 10Y*: —

SWSBX

• 1D: 0.21%
• 1M: -1.23%
• YTD: -0.27%
• 6M: 0.88%
• 1Y: 3.63%
• 3Y*: 3.74%
• 5Y*: 1.25%
• 10Y*: —

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

MSTBX vs. SWSBX - Expense Ratio Comparison

MSTBX has a 0.52% expense ratio, which is higher than SWSBX's 0.06% expense ratio.

MSTBX

Morningstar Defensive Bond Fund

SWSBX

Schwab Short-Term Bond Index Fund

Return for Risk

MSTBX vs. SWSBX — Risk / Return Rank

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

MSTBX

MSTBX Risk / Return Rank: 89
MSTBX Sharpe Ratio Rank: 84
MSTBX Sortino Ratio Rank: 89
MSTBX Omega Ratio Rank: 82
MSTBX Calmar Ratio Rank: 94
MSTBX Martin Ratio Rank: 94

SWSBX

SWSBX Risk / Return Rank: 90
SWSBX Sharpe Ratio Rank: 87
SWSBX Sortino Ratio Rank: 93
SWSBX Omega Ratio Rank: 87
SWSBX Calmar Ratio Rank: 92
SWSBX Martin Ratio Rank: 90

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.

MSTBX vs. SWSBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morningstar Defensive Bond Fund (MSTBX) and Schwab Short-Term Bond Index Fund (SWSBX). 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.

	MSTBX	SWSBX	Difference
Sharpe ratio Return per unit of total volatility	1.60	1.71	-0.10
Sortino ratio Return per unit of downside risk	2.48	2.83	-0.36
Omega ratio Gain probability vs. loss probability	1.33	1.36	-0.04
Calmar ratio Return relative to maximum drawdown	3.19	2.79	+0.40
Martin ratio Return relative to average drawdown	12.16	10.25	+1.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSTBX vs. SWSBX - Sharpe Ratio Comparison

The current MSTBX Sharpe Ratio is 1.60, which is comparable to the SWSBX Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of MSTBX and SWSBX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	MSTBX	SWSBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.60	1.71	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.10	0.42	+0.68
Sharpe Ratio (All Time) Calculated using the full available price history	1.40	0.76	+0.64

Correlation

The correlation between MSTBX and SWSBX is 0.76, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

MSTBX vs. SWSBX - Dividend Comparison

MSTBX's dividend yield for the trailing twelve months is around 1.99%, less than SWSBX's 3.79% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSTBX Morningstar Defensive Bond Fund	1.99%	2.79%	4.23%	3.80%	2.64%	2.64%	3.17%	2.69%	0.29%	0.00%
SWSBX Schwab Short-Term Bond Index Fund	3.79%	4.09%	3.66%	2.36%	1.11%	0.97%	1.82%	2.41%	2.12%	1.56%

Drawdowns

MSTBX vs. SWSBX - Drawdown Comparison

The maximum MSTBX drawdown since its inception was -6.31%, smaller than the maximum SWSBX drawdown of -9.06%. Use the drawdown chart below to compare losses from any high point for MSTBX and SWSBX.

Drawdown Indicators

	MSTBX	SWSBX	Difference
Max Drawdown Largest peak-to-trough decline	-6.31%	-9.06%	+2.75%
Max Drawdown (1Y) Largest decline over 1 year	-1.42%	-1.54%	+0.12%
Max Drawdown (5Y) Largest decline over 5 years	-6.31%	-9.06%	+2.75%
Current Drawdown Current decline from peak	-1.01%	-1.23%	+0.22%
Average Drawdown Average peak-to-trough decline	-1.02%	-1.81%	+0.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.37%	0.42%	-0.05%

Volatility

MSTBX vs. SWSBX - Volatility Comparison

Morningstar Defensive Bond Fund (MSTBX) has a higher volatility of 0.78% compared to Schwab Short-Term Bond Index Fund (SWSBX) at 0.73%. This indicates that MSTBX's price experiences larger fluctuations and is considered to be riskier than SWSBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTBX	SWSBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.78%	0.73%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	1.44%	1.49%	-0.05%
Volatility (1Y) Calculated over the trailing 1-year period	2.51%	2.40%	+0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.35%	2.95%	-0.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.09%	2.47%	-0.38%