SCHF vs. PSEC

Last updated Jun 13, 2026

SCHF (Schwab International Equity ETF) is Foreign Large Cap Equities fund tracking the FTSE Developed ex U.S. Index, while PSEC (Prospect Capital Corporation) is a stock. Over the past 10 years, SCHF returned 10.82%/yr vs 0.41%/yr for PSEC. At a 0.48 correlation, their price movements are largely independent.

Performance

SCHF vs. PSEC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab International Equity ETF (SCHF) and Prospect Capital Corporation (PSEC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHF achieves a 15.39% return, which is significantly higher than PSEC's -3.27% return. Over the past 10 years, SCHF has outperformed PSEC with an annualized return of 10.82%, while PSEC has yielded a comparatively lower 0.41% annualized return.

SCHF

• 1D: 0.29%
• 1M: 1.69%
• YTD: 15.39%
• 6M: 17.24%
• 1Y: 31.75%
• 3Y*: 19.18%
• 5Y*: 9.76%
• 10Y*: 10.82%

PSEC

• 1D: 1.32%
• 1M: 7.59%
• YTD: -3.27%
• 6M: -2.63%
• 1Y: -14.85%
• 3Y*: -16.85%
• 5Y*: -13.87%
• 10Y*: 0.41%

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

SCHF vs. PSEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHF Schwab International Equity ETF	15.39%	34.55%	3.28%	18.35%	-14.80%	11.40%	9.48%	22.26%	-14.29%	26.03%
PSEC Prospect Capital Corporation	-3.27%	-28.86%	-18.16%	-4.13%	-8.61%	70.00%	-3.54%	13.83%	4.09%	-9.44%

Correlation

The correlation between SCHF and PSEC is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.44
Correlation (All Time) Calculated using the full available price history since Nov 3, 2009	0.48

The correlation between SCHF and PSEC shifts across timeframes, from 0.34 (1 year) to 0.48 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

SCHF vs. PSEC — Risk / Return Rank

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

SCHF

SCHF Risk / Return Rank: 63
SCHF Sharpe Ratio Rank: 64
SCHF Sortino Ratio Rank: 62
SCHF Omega Ratio Rank: 63
SCHF Calmar Ratio Rank: 61
SCHF Martin Ratio Rank: 64

PSEC

PSEC Risk / Return Rank: 20
PSEC Sharpe Ratio Rank: 21
PSEC Sortino Ratio Rank: 20
PSEC Omega Ratio Rank: 21
PSEC Calmar Ratio Rank: 20
PSEC Martin Ratio Rank: 18

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.

SCHF vs. PSEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab International Equity ETF (SCHF) and Prospect Capital Corporation (PSEC). 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.

	SCHF	PSEC	Difference
Sharpe ratio: Return per unit of total volatility	1.82	-0.50	+2.32
Sortino ratio: Return per unit of downside risk	2.52	-0.54	+3.06
Omega ratio: Gain probability vs. loss probability	1.33	0.94	+0.39
Calmar ratio: Return relative to maximum drawdown	2.64	-0.63	+3.27
Martin ratio: Return relative to average drawdown	10.14	-1.13	+11.27

SCHF vs. PSEC - Sharpe Ratio Comparison

The current SCHF Sharpe Ratio is 1.82, which is higher than the PSEC Sharpe Ratio of -0.50. The chart below compares the historical Sharpe Ratios of SCHF and PSEC, 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

SCHF vs. PSEC - Drawdown Comparison

The maximum SCHF drawdown since its inception was -34.87%, smaller than the maximum PSEC drawdown of -61.51%. Use the drawdown chart below to compare losses from any high point for SCHF and PSEC.

Drawdown Indicators

	SCHF	PSEC	Difference
Max Drawdown Largest peak-to-trough decline	-34.87%	-61.51%	+26.64%
Max Drawdown (1Y) Largest decline over 1 year	-11.48%	-27.04%	+15.56%
Max Drawdown (3Y) Largest decline over 3 years	-13.41%	-50.64%	+37.23%
Max Drawdown (5Y) Largest decline over 5 years	-29.14%	-57.21%	+28.07%
Max Drawdown (10Y) Largest decline over 10 years	-34.87%	-57.21%	+22.34%
Current Drawdown Current decline from peak	-1.00%	-53.33%	+52.33%
Average Drawdown Average peak-to-trough decline	-7.37%	-15.65%	+8.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	15.04%	-12.05%

Volatility

SCHF vs. PSEC - Volatility Comparison

The current volatility for Schwab International Equity ETF (SCHF) is 6.91%, while Prospect Capital Corporation (PSEC) has a volatility of 10.61%. This indicates that SCHF experiences smaller price fluctuations and is considered to be less risky than PSEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHF	PSEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.91%	10.61%	-3.70%
Volatility (6M) Calculated over the trailing 6-month period	14.42%	27.53%	-13.11%
Volatility (1Y) Calculated over the trailing 1-year period	16.67%	33.82%	-17.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.56%	28.06%	-11.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.24%	27.36%	-10.12%

Dividends

SCHF vs. PSEC - Dividend Comparison

SCHF's dividend yield for the trailing twelve months is around 2.96%, less than PSEC's 22.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSEC Prospect Capital Corporation	22.94%	20.85%	16.01%	12.02%	10.30%	8.56%	13.31%	11.18%	11.41%	13.45%	11.98%	14.72%
SCHF Schwab International Equity ETF	2.96%	3.42%	3.26%	2.97%	2.80%	3.19%	2.08%	2.95%	3.06%	2.35%	2.58%	2.26%

Frequently Asked Questions

Can I hold both SCHF and PSEC in my portfolio?

SCHF and PSEC have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHF or PSEC?

PSEC has higher volatility (10.61%) compared to SCHF (6.91%). In terms of maximum drawdown, SCHF dropped -34.87% vs PSEC's -61.51%.

Which has better risk-adjusted returns?

SCHF currently has the higher Sharpe Ratio (1.82 vs -0.50), 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.