PFSLX vs. SCHM

Last updated Jun 23, 2026

PFSLX (Paradigm Select Fund) and SCHM (Schwab US Mid-Cap ETF) are both Mid Cap Blend Equities funds. Over the past 10 years, PFSLX returned 17.41%/yr vs 11.71%/yr for SCHM. Their correlation of 0.91 suggests significant overlap in exposure. PFSLX charges 1.16%/yr vs 0.04%/yr for SCHM.

Performance

PFSLX vs. SCHM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Paradigm Select Fund (PFSLX) and Schwab US Mid-Cap ETF (SCHM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFSLX achieves a 45.46% return, which is significantly higher than SCHM's 19.11% return. Over the past 10 years, PFSLX has outperformed SCHM with an annualized return of 17.41%, while SCHM has yielded a comparatively lower 11.71% annualized return.

PFSLX

• 1D: 2.50%
• 1M: 9.11%
• YTD: 45.46%
• 6M: 42.51%
• 1Y: 81.66%
• 3Y*: 28.05%
• 5Y*: 15.47%
• 10Y*: 17.41%

SCHM

• 1D: -1.73%
• 1M: 2.88%
• YTD: 19.11%
• 6M: 16.97%
• 1Y: 31.33%
• 3Y*: 17.85%
• 5Y*: 8.08%
• 10Y*: 11.71%

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

PFSLX vs. SCHM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFSLX Paradigm Select Fund	45.46%	13.27%	16.73%	26.94%	-26.44%	31.16%	26.05%	38.32%	-9.93%	16.13%
SCHM Schwab US Mid-Cap ETF	19.11%	10.17%	11.98%	16.69%	-17.07%	19.36%	15.26%	27.48%	-8.77%	19.60%

Correlation

The correlation between PFSLX and SCHM is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Jan 13, 2011	0.91

The correlation between PFSLX and SCHM has been stable across timeframes, ranging from 0.83 to 0.91 - a consistent structural relationship.

Return for Risk

PFSLX vs. SCHM — Risk / Return Rank

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

PFSLX

PFSLX Risk / Return Rank: 92
PFSLX Sharpe Ratio Rank: 96
PFSLX Sortino Ratio Rank: 87
PFSLX Omega Ratio Rank: 82
PFSLX Calmar Ratio Rank: 98
PFSLX Martin Ratio Rank: 98

SCHM

SCHM Risk / Return Rank: 64
SCHM Sharpe Ratio Rank: 60
SCHM Sortino Ratio Rank: 60
SCHM Omega Ratio Rank: 56
SCHM Calmar Ratio Rank: 70
SCHM 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.

PFSLX vs. SCHM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Paradigm Select Fund (PFSLX) and Schwab US Mid-Cap ETF (SCHM). 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.

	PFSLX	SCHM	Difference
Sharpe ratio: Return per unit of total volatility	3.16	1.93	+1.23
Sortino ratio: Return per unit of downside risk	3.87	2.72	+1.15
Omega ratio: Gain probability vs. loss probability	1.49	1.34	+0.16
Calmar ratio: Return relative to maximum drawdown	7.55	3.38	+4.17
Martin ratio: Return relative to average drawdown	28.96	13.48	+15.48

PFSLX vs. SCHM - Sharpe Ratio Comparison

The current PFSLX Sharpe Ratio is 3.16, which is higher than the SCHM Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of PFSLX and SCHM, 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

PFSLX vs. SCHM - Drawdown Comparison

The maximum PFSLX drawdown since its inception was -91.83%, which is greater than SCHM's maximum drawdown of -42.43%. Use the drawdown chart below to compare losses from any high point for PFSLX and SCHM.

Drawdown Indicators

	PFSLX	SCHM	Difference
Max Drawdown Largest peak-to-trough decline	-91.83%	-42.43%	-49.40%
Max Drawdown (1Y) Largest decline over 1 year	-10.91%	-9.32%	-1.59%
Max Drawdown (3Y) Largest decline over 3 years	-91.83%	-23.27%	-68.56%
Max Drawdown (5Y) Largest decline over 5 years	-91.83%	-26.46%	-65.37%
Max Drawdown (10Y) Largest decline over 10 years	-91.83%	-42.43%	-49.40%
Current Drawdown Current decline from peak	-82.40%	-1.73%	-80.67%
Average Drawdown Average peak-to-trough decline	-13.88%	-5.64%	-8.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	2.33%	+0.51%

Volatility

PFSLX vs. SCHM - Volatility Comparison

Paradigm Select Fund (PFSLX) has a higher volatility of 10.80% compared to Schwab US Mid-Cap ETF (SCHM) at 5.75%. This indicates that PFSLX's price experiences larger fluctuations and is considered to be riskier than SCHM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFSLX	SCHM	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.80%	5.75%	+5.05%
Volatility (6M) Calculated over the trailing 6-month period	20.96%	12.61%	+8.35%
Volatility (1Y) Calculated over the trailing 1-year period	26.09%	16.30%	+9.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	146.06%	19.67%	+126.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	104.44%	20.49%	+83.95%

PFSLX vs. SCHM - Expense Ratio Comparison

PFSLX has a 1.16% expense ratio, which is higher than SCHM's 0.04% expense ratio.

Dividends

PFSLX vs. SCHM - Dividend Comparison

PFSLX's dividend yield for the trailing twelve months is around 0.10%, less than SCHM's 1.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFSLX Paradigm Select Fund	0.10%	0.14%	0.02%	0.31%	0.01%	0.17%	0.11%	0.58%	2.93%	3.89%	0.74%	9.40%
SCHM Schwab US Mid-Cap ETF	1.22%	1.46%	1.43%	1.50%	1.67%	1.13%	1.31%	1.48%	1.56%	1.27%	1.51%	1.54%

Frequently Asked Questions

Can I hold both PFSLX and SCHM in my portfolio?

PFSLX and SCHM have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFSLX or SCHM?

PFSLX has higher volatility (10.80%) compared to SCHM (5.75%). In terms of maximum drawdown, PFSLX dropped -91.83% vs SCHM's -42.43%.

Which has better risk-adjusted returns?

PFSLX currently has the higher Sharpe Ratio (3.16 vs 1.93), 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.