PSBMX vs. SWSSX

Last updated Jun 24, 2026

PSBMX (Principal SmallCap Fund) and SWSSX (Schwab Small-Cap Index Fund-Select Shares) are both Small Cap Blend Equities funds. Over the past 10 years, PSBMX returned 11.08%/yr vs 11.83%/yr for SWSSX. With a 0.97 correlation, they move nearly in lockstep. PSBMX charges 1.31%/yr vs 0.04%/yr for SWSSX.

Performance

PSBMX vs. SWSSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal SmallCap Fund (PSBMX) and Schwab Small-Cap Index Fund-Select Shares (SWSSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSBMX achieves a 16.25% return, which is significantly lower than SWSSX's 21.72% return. Over the past 10 years, PSBMX has underperformed SWSSX with an annualized return of 11.08%, while SWSSX has yielded a comparatively higher 11.83% annualized return.

PSBMX

• 1D: 0.85%
• 1M: 4.99%
• YTD: 16.25%
• 6M: 13.89%
• 1Y: 35.33%
• 3Y*: 16.05%
• 5Y*: 5.87%
• 10Y*: 11.08%

SWSSX

• 1D: 0.83%
• 1M: 4.82%
• YTD: 21.72%
• 6M: 18.97%
• 1Y: 42.68%
• 3Y*: 19.85%
• 5Y*: 6.95%
• 10Y*: 11.83%

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

PSBMX vs. SWSSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSBMX Principal SmallCap Fund	16.25%	14.58%	8.53%	15.11%	-20.51%	19.21%	21.44%	26.97%	-11.42%	12.35%
SWSSX Schwab Small-Cap Index Fund-Select Shares	21.72%	12.88%	11.57%	17.07%	-20.43%	14.77%	20.12%	25.63%	-11.19%	14.76%

Correlation

The correlation between PSBMX and SWSSX is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jan 2, 2001	0.97

The correlation between PSBMX and SWSSX has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

Return for Risk

PSBMX vs. SWSSX — Risk / Return Rank

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

PSBMX

PSBMX Risk / Return Rank: 59
PSBMX Sharpe Ratio Rank: 57
PSBMX Sortino Ratio Rank: 53
PSBMX Omega Ratio Rank: 49
PSBMX Calmar Ratio Rank: 69
PSBMX Martin Ratio Rank: 65

SWSSX

SWSSX Risk / Return Rank: 72
SWSSX Sharpe Ratio Rank: 71
SWSSX Sortino Ratio Rank: 65
SWSSX Omega Ratio Rank: 53
SWSSX Calmar Ratio Rank: 88
SWSSX Martin Ratio Rank: 83

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.

PSBMX vs. SWSSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal SmallCap Fund (PSBMX) 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.

	PSBMX	SWSSX	Difference
Sharpe ratio: Return per unit of total volatility	2.04	2.26	-0.21
Sortino ratio: Return per unit of downside risk	2.83	3.07	-0.24
Omega ratio: Gain probability vs. loss probability	1.35	1.37	-0.01
Calmar ratio: Return relative to maximum drawdown	3.05	4.04	-0.99
Martin ratio: Return relative to average drawdown	11.97	14.31	-2.34

PSBMX vs. SWSSX - Sharpe Ratio Comparison

The current PSBMX Sharpe Ratio is 2.04, which is comparable to the SWSSX Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of PSBMX 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

PSBMX vs. SWSSX - Drawdown Comparison

The maximum PSBMX drawdown since its inception was -60.15%, roughly equal to the maximum SWSSX drawdown of -60.34%. Use the drawdown chart below to compare losses from any high point for PSBMX and SWSSX.

Drawdown Indicators

	PSBMX	SWSSX	Difference
Max Drawdown Largest peak-to-trough decline	-60.15%	-60.34%	+0.19%
Max Drawdown (1Y) Largest decline over 1 year	-12.10%	-11.00%	-1.10%
Max Drawdown (3Y) Largest decline over 3 years	-25.13%	-27.50%	+2.37%
Max Drawdown (5Y) Largest decline over 5 years	-31.32%	-31.93%	+0.61%
Max Drawdown (10Y) Largest decline over 10 years	-42.04%	-41.81%	-0.23%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.76%	-10.71%	-0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	3.10%	-0.02%

Volatility

PSBMX vs. SWSSX - Volatility Comparison

The current volatility for Principal SmallCap Fund (PSBMX) is 5.46%, while Schwab Small-Cap Index Fund-Select Shares (SWSSX) has a volatility of 6.39%. This indicates that PSBMX experiences smaller price fluctuations and is considered to be less risky than SWSSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSBMX	SWSSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.46%	6.39%	-0.93%
Volatility (6M) Calculated over the trailing 6-month period	13.91%	14.33%	-0.42%
Volatility (1Y) Calculated over the trailing 1-year period	18.10%	19.75%	-1.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.09%	22.68%	-0.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.41%	24.15%	-1.74%

PSBMX vs. SWSSX - Expense Ratio Comparison

PSBMX has a 1.31% expense ratio, which is higher than SWSSX's 0.04% expense ratio.

Dividends

PSBMX vs. SWSSX - Dividend Comparison

PSBMX's dividend yield for the trailing twelve months is around 4.80%, more than SWSSX's 1.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSBMX Principal SmallCap Fund	4.80%	5.58%	3.66%	2.91%	0.00%	7.82%	2.28%	5.83%	16.72%	8.65%	2.29%	3.80%
SWSSX Schwab Small-Cap Index Fund-Select Shares	1.06%	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 PSBMX and SWSSX in my portfolio?

With a correlation of 0.93, PSBMX 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, PSBMX or SWSSX?

SWSSX has higher volatility (6.39%) compared to PSBMX (5.46%). In terms of maximum drawdown, PSBMX dropped -60.15% vs SWSSX's -60.34%.

Which has better risk-adjusted returns?

SWSSX currently has the higher Sharpe Ratio (2.26 vs 2.04), 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.