PREFX vs. SWLGX

Last updated Jun 23, 2026

PREFX (T. Rowe Price Tax-Efficient Equity Fund) and SWLGX (Schwab U.S. Large-Cap Growth Index Fund) are both Large Cap Growth Equities funds. Over the past 5 years, PREFX returned 11.63%/yr vs 14.30%/yr for SWLGX. With a 0.97 correlation, they move nearly in lockstep. PREFX charges 0.76%/yr vs 0.04%/yr for SWLGX.

Performance

PREFX vs. SWLGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Tax-Efficient Equity Fund (PREFX) and Schwab U.S. Large-Cap Growth Index Fund (SWLGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PREFX achieves a 5.67% return, which is significantly higher than SWLGX's 4.51% return.

PREFX

• 1D: 1.65%
• 1M: -0.14%
• YTD: 5.67%
• 6M: 4.86%
• 1Y: 20.71%
• 3Y*: 21.90%
• 5Y*: 11.63%
• 10Y*: 16.70%

SWLGX

• 1D: 1.38%
• 1M: -1.24%
• YTD: 4.51%
• 6M: 3.85%
• 1Y: 22.81%
• 3Y*: 22.68%
• 5Y*: 14.30%
• 10Y*: —

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

PREFX vs. SWLGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PREFX T. Rowe Price Tax-Efficient Equity Fund	5.67%	16.30%	32.37%	36.98%	-30.52%	22.19%	35.32%	36.59%	-0.46%	-0.62%
SWLGX Schwab U.S. Large-Cap Growth Index Fund	4.51%	18.55%	33.30%	42.67%	-29.17%	27.55%	38.43%	36.30%	-1.59%	-0.60%

Correlation

The correlation between PREFX and SWLGX is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Dec 19, 2017	0.97

The correlation between PREFX and SWLGX has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

Return for Risk

PREFX vs. SWLGX — Risk / Return Rank

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

PREFX

PREFX Risk / Return Rank: 20
PREFX Sharpe Ratio Rank: 23
PREFX Sortino Ratio Rank: 22
PREFX Omega Ratio Rank: 22
PREFX Calmar Ratio Rank: 15
PREFX Martin Ratio Rank: 17

SWLGX

SWLGX Risk / Return Rank: 22
SWLGX Sharpe Ratio Rank: 26
SWLGX Sortino Ratio Rank: 24
SWLGX Omega Ratio Rank: 25
SWLGX Calmar Ratio Rank: 17
SWLGX Martin Ratio Rank: 19

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.

PREFX vs. SWLGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Tax-Efficient Equity Fund (PREFX) and Schwab U.S. Large-Cap Growth Index Fund (SWLGX). 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.

	PREFX	SWLGX	Difference
Sharpe ratio: Return per unit of total volatility	1.27	1.38	-0.10
Sortino ratio: Return per unit of downside risk	1.82	1.90	-0.08
Omega ratio: Gain probability vs. loss probability	1.23	1.24	-0.02
Calmar ratio: Return relative to maximum drawdown	1.28	1.38	-0.09
Martin ratio: Return relative to average drawdown	4.28	4.53	-0.25

PREFX vs. SWLGX - Sharpe Ratio Comparison

The current PREFX Sharpe Ratio is 1.27, which is comparable to the SWLGX Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of PREFX and SWLGX, 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

PREFX vs. SWLGX - Drawdown Comparison

The maximum PREFX drawdown since its inception was -56.70%, which is greater than SWLGX's maximum drawdown of -32.69%. Use the drawdown chart below to compare losses from any high point for PREFX and SWLGX.

Drawdown Indicators

	PREFX	SWLGX	Difference
Max Drawdown Largest peak-to-trough decline	-56.70%	-32.69%	-24.01%
Max Drawdown (1Y) Largest decline over 1 year	-16.18%	-16.16%	-0.02%
Max Drawdown (3Y) Largest decline over 3 years	-23.06%	-23.30%	+0.24%
Max Drawdown (5Y) Largest decline over 5 years	-35.95%	-32.69%	-3.26%
Max Drawdown (10Y) Largest decline over 10 years	-35.95%	—	—
Current Drawdown Current decline from peak	-2.99%	-4.13%	+1.14%
Average Drawdown Average peak-to-trough decline	-10.25%	-7.04%	-3.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.78%	4.90%	-0.12%

Volatility

PREFX vs. SWLGX - Volatility Comparison

T. Rowe Price Tax-Efficient Equity Fund (PREFX) has a higher volatility of 6.27% compared to Schwab U.S. Large-Cap Growth Index Fund (SWLGX) at 5.94%. This indicates that PREFX's price experiences larger fluctuations and is considered to be riskier than SWLGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PREFX	SWLGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.27%	5.94%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	13.31%	12.68%	+0.63%
Volatility (1Y) Calculated over the trailing 1-year period	16.32%	16.14%	+0.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.76%	21.60%	+0.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.31%	22.69%	-1.38%

PREFX vs. SWLGX - Expense Ratio Comparison

PREFX has a 0.76% expense ratio, which is higher than SWLGX's 0.04% expense ratio.

Dividends

PREFX vs. SWLGX - Dividend Comparison

PREFX has not paid dividends to shareholders, while SWLGX's dividend yield for the trailing twelve months is around 0.44%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PREFX T. Rowe Price Tax-Efficient Equity Fund	0.00%	0.00%	0.85%	0.61%	0.88%	2.09%	1.98%	0.94%	1.36%	2.82%	0.22%	0.55%
SWLGX Schwab U.S. Large-Cap Growth Index Fund	0.44%	0.46%	0.52%	0.67%	0.93%	1.76%	0.67%	0.96%	1.03%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PREFX and SWLGX in my portfolio?

With a correlation of 0.94, PREFX and SWLGX 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, PREFX or SWLGX?

PREFX has higher volatility (6.27%) compared to SWLGX (5.94%). In terms of maximum drawdown, PREFX dropped -56.70% vs SWLGX's -32.69%.

Which has better risk-adjusted returns?

SWLGX currently has the higher Sharpe Ratio (1.38 vs 1.27), 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.