MSTBX vs. SWSBX

Last updated Jun 5, 2026

MSTBX (Morningstar Defensive Bond Fund) and SWSBX (Schwab Short-Term Bond Index Fund) are both Short-Term Bond funds. Over the past 5 years, MSTBX returned 2.34%/yr vs 1.26%/yr for SWSBX. A 0.76 correlation means they provide meaningful diversification when combined. MSTBX charges 0.52%/yr vs 0.06%/yr for SWSBX.

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.

Returns By Period

In the year-to-date period, MSTBX achieves a -0.22% return, which is significantly lower than SWSBX's 0.24% return.

MSTBX

• 1D: -0.10%
• 1M: -0.17%
• YTD: -0.22%
• 6M: 0.10%
• 1Y: 2.36%
• 3Y*: 4.76%
• 5Y*: 2.34%
• 10Y*: —

SWSBX

• 1D: -0.10%
• 1M: 0.03%
• YTD: 0.24%
• 6M: 0.59%
• 1Y: 3.42%
• 3Y*: 4.08%
• 5Y*: 1.26%
• 10Y*: —

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

MSTBX vs. SWSBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
MSTBX Morningstar Defensive Bond Fund	-0.22%	5.19%	4.52%	7.16%	-4.73%	0.84%	4.75%	3.53%	0.39%
SWSBX Schwab Short-Term Bond Index Fund	0.24%	6.06%	3.42%	3.95%	-5.89%	-1.28%	4.47%	4.96%	1.53%

Correlation

The correlation between MSTBX and SWSBX is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (All Time) Calculated using the full available price history since Nov 6, 2018	0.76

The correlation between MSTBX and SWSBX shifts across timeframes, from 0.59 (1 year) to 0.81 (5 years), reflecting how their relationship changes across market environments.

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: 33
MSTBX Sharpe Ratio Rank: 30
MSTBX Sortino Ratio Rank: 33
MSTBX Omega Ratio Rank: 33
MSTBX Calmar Ratio Rank: 39
MSTBX Martin Ratio Rank: 29

SWSBX

SWSBX Risk / Return Rank: 38
SWSBX Sharpe Ratio Rank: 32
SWSBX Sortino Ratio Rank: 43
SWSBX Omega Ratio Rank: 41
SWSBX Calmar Ratio Rank: 39
SWSBX Martin Ratio Rank: 35

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	1.51	1.64	-0.13
Sortino ratio: Return per unit of downside risk	2.33	2.77	-0.44
Omega ratio: Gain probability vs. loss probability	1.29	1.34	-0.05
Calmar ratio: Return relative to maximum drawdown	2.30	2.37	-0.07
Martin ratio: Return relative to average drawdown	6.68	7.71	-1.04
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 1.51, which is comparable to the SWSBX Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of MSTBX and SWSBX, 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

	MSTBX	SWSBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.51	1.64	-0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.03	0.42	+0.61
Sharpe Ratio (All Time) Calculated using the full available price history	1.37	0.77	+0.60

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	-1.41%	-1.54%	+0.13%
Max Drawdown (3Y) Largest decline over 3 years	-1.42%	-1.79%	+0.37%
Max Drawdown (5Y) Largest decline over 5 years	-6.31%	-9.06%	+2.75%
Current Drawdown Current decline from peak	-1.02%	-0.74%	-0.28%
Average Drawdown Average peak-to-trough decline	-1.02%	-1.79%	+0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	0.47%	+0.02%

Volatility

MSTBX vs. SWSBX - Volatility Comparison

Morningstar Defensive Bond Fund (MSTBX) and Schwab Short-Term Bond Index Fund (SWSBX) have volatilities of 0.67% and 0.68%, 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

	MSTBX	SWSBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.67%	0.68%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	1.47%	1.62%	-0.15%
Volatility (1Y) Calculated over the trailing 1-year period	2.14%	2.23%	-0.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.38%	2.99%	-0.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.09%	2.47%	-0.38%

MSTBX vs. SWSBX - Expense Ratio Comparison

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

Dividends

MSTBX vs. SWSBX - Dividend Comparison

MSTBX's dividend yield for the trailing twelve months is around 2.46%, less than SWSBX's 4.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSTBX Morningstar Defensive Bond Fund	2.46%	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	4.13%	4.09%	3.66%	2.36%	1.11%	0.97%	1.82%	2.41%	2.12%	1.56%

Frequently Asked Questions

Can I hold both MSTBX and SWSBX in my portfolio?

MSTBX and SWSBX have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTBX or SWSBX?

SWSBX has higher volatility (0.68%) compared to MSTBX (0.67%). In terms of maximum drawdown, MSTBX dropped -6.31% vs SWSBX's -9.06%.

Which has better risk-adjusted returns?

SWSBX currently has the higher Sharpe Ratio (1.64 vs 1.51), 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.