SCHZ vs. SWAGX

Last updated Jun 23, 2026

SCHZ (Schwab U.S. Aggregate Bond ETF) and SWAGX (Schwab U.S. Aggregate Bond Index Fund) are both Total Bond Market funds from Charles Schwab tracking the Bloomberg US Aggregate Bond Index. Both are passively managed. Over the past 5 years, SCHZ returned 0.02%/yr vs -0.16%/yr for SWAGX. Their correlation of 0.91 suggests significant overlap in exposure. SCHZ charges 0.03%/yr vs 0.04%/yr for SWAGX.

Performance

SCHZ vs. SWAGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab U.S. Aggregate Bond Index Fund (SWAGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

As of year-to-date, both investments have demonstrated similar returns, with SCHZ at 0.38% and SWAGX at 0.38%.

SCHZ

• 1D: -0.26%
• 1M: 0.61%
• YTD: 0.38%
• 6M: 0.47%
• 1Y: 4.52%
• 3Y*: 3.90%
• 5Y*: 0.02%
• 10Y*: 1.48%

SWAGX

• 1D: 0.22%
• 1M: 0.81%
• YTD: 0.38%
• 6M: 0.74%
• 1Y: 4.66%
• 3Y*: 4.01%
• 5Y*: -0.16%
• 10Y*: —

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

SCHZ vs. SWAGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHZ Schwab U.S. Aggregate Bond ETF	0.38%	7.24%	1.26%	5.60%	-13.17%	-1.72%	7.46%	8.65%	-0.26%	2.79%
SWAGX Schwab U.S. Aggregate Bond Index Fund	0.38%	7.11%	1.38%	5.46%	-13.62%	-2.29%	7.39%	8.64%	-0.11%	2.62%

Correlation

The correlation between SCHZ and SWAGX is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Feb 23, 2017	0.91

The correlation between SCHZ and SWAGX has been stable across timeframes, ranging from 0.91 to 0.96 - a consistent structural relationship.

Return for Risk

SCHZ vs. SWAGX — Risk / Return Rank

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

SCHZ

SCHZ Risk / Return Rank: 34
SCHZ Sharpe Ratio Rank: 34
SCHZ Sortino Ratio Rank: 35
SCHZ Omega Ratio Rank: 32
SCHZ Calmar Ratio Rank: 34
SCHZ Martin Ratio Rank: 34

SWAGX

SWAGX Risk / Return Rank: 20
SWAGX Sharpe Ratio Rank: 21
SWAGX Sortino Ratio Rank: 22
SWAGX Omega Ratio Rank: 19
SWAGX Calmar Ratio Rank: 21
SWAGX 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.

SCHZ vs. SWAGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab U.S. Aggregate Bond Index Fund (SWAGX). 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.

	SCHZ	SWAGX	Difference
Sharpe ratio: Return per unit of total volatility	1.21	1.21	-0.01
Sortino ratio: Return per unit of downside risk	1.81	1.84	-0.03
Omega ratio: Gain probability vs. loss probability	1.21	1.21	0.00
Calmar ratio: Return relative to maximum drawdown	1.68	1.57	+0.11
Martin ratio: Return relative to average drawdown	4.86	4.48	+0.37

SCHZ vs. SWAGX - Sharpe Ratio Comparison

The current SCHZ Sharpe Ratio is 1.21, which is comparable to the SWAGX Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of SCHZ and SWAGX, 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

SCHZ vs. SWAGX - Drawdown Comparison

The maximum SCHZ drawdown since its inception was -18.74%, roughly equal to the maximum SWAGX drawdown of -19.68%. Use the drawdown chart below to compare losses from any high point for SCHZ and SWAGX.

Drawdown Indicators

	SCHZ	SWAGX	Difference
Max Drawdown Largest peak-to-trough decline	-18.74%	-19.68%	+0.94%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-3.05%	+0.35%
Max Drawdown (3Y) Largest decline over 3 years	-6.18%	-6.14%	-0.04%
Max Drawdown (5Y) Largest decline over 5 years	-18.01%	-18.76%	+0.75%
Max Drawdown (10Y) Largest decline over 10 years	-18.74%	—	—
Current Drawdown Current decline from peak	-2.38%	-3.38%	+1.00%
Average Drawdown Average peak-to-trough decline	-3.68%	-5.67%	+1.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	1.07%	-0.14%

Volatility

SCHZ vs. SWAGX - Volatility Comparison

Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab U.S. Aggregate Bond Index Fund (SWAGX) have volatilities of 1.15% and 1.14%, 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

	SCHZ	SWAGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.15%	1.14%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	2.79%	2.94%	-0.15%
Volatility (1Y) Calculated over the trailing 1-year period	3.76%	3.95%	-0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.09%	6.09%	0.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.42%	5.11%	+0.31%

SCHZ vs. SWAGX - Expense Ratio Comparison

SCHZ has a 0.03% expense ratio, which is lower than SWAGX's 0.04% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHZ vs. SWAGX - Dividend Comparison

SCHZ's dividend yield for the trailing twelve months is around 4.12%, which matches SWAGX's 4.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHZ Schwab U.S. Aggregate Bond ETF	4.12%	4.05%	3.96%	3.28%	2.63%	2.16%	2.43%	2.79%	2.56%	2.40%	2.24%	2.11%
SWAGX Schwab U.S. Aggregate Bond Index Fund	4.13%	4.02%	3.88%	3.22%	1.93%	1.56%	2.47%	2.87%	2.80%	1.98%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SCHZ and SWAGX in my portfolio?

With a correlation of 0.91, SCHZ and SWAGX 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, SCHZ or SWAGX?

SCHZ has higher volatility (1.15%) compared to SWAGX (1.14%). In terms of maximum drawdown, SCHZ dropped -18.74% vs SWAGX's -19.68%.

Which has better risk-adjusted returns?

SWAGX currently has the higher Sharpe Ratio (1.21 vs 1.21), 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.