SHRCX vs. DFSMX

Last updated Jun 25, 2026

SHRCX (Western Asset California Municipals Fund) and DFSMX (DFA Short Term Municipal Bond Portfolio) are both Municipal Bonds funds. Over the past 10 years, SHRCX returned 1.68%/yr vs 1.24%/yr for DFSMX. At a 0.23 correlation, their price movements are largely independent. SHRCX charges 0.76%/yr vs 0.20%/yr for DFSMX.

Performance

SHRCX vs. DFSMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset California Municipals Fund (SHRCX) and DFA Short Term Municipal Bond Portfolio (DFSMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHRCX achieves a 1.39% return, which is significantly higher than DFSMX's 1.15% return. Over the past 10 years, SHRCX has outperformed DFSMX with an annualized return of 1.68%, while DFSMX has yielded a comparatively lower 1.24% annualized return.

SHRCX

• 1D: 0.00%
• 1M: 1.64%
• YTD: 1.39%
• 6M: 1.75%
• 1Y: 7.27%
• 3Y*: 3.66%
• 5Y*: 0.57%
• 10Y*: 1.68%

DFSMX

• 1D: 0.00%
• 1M: 0.40%
• YTD: 1.15%
• 6M: 1.15%
• 1Y: 2.38%
• 3Y*: 2.71%
• 5Y*: 1.74%
• 10Y*: 1.24%

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

SHRCX vs. DFSMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SHRCX Western Asset California Municipals Fund	1.39%	5.05%	2.18%	5.32%	-10.83%	1.71%	3.76%	7.92%	0.42%	4.95%
DFSMX DFA Short Term Municipal Bond Portfolio	1.15%	2.30%	2.84%	2.98%	-0.36%	-0.11%	0.83%	1.62%	1.22%	1.15%

Correlation

The correlation between SHRCX and DFSMX is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.27
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Aug 22, 2002	0.23

The correlation between SHRCX and DFSMX shifts across timeframes, from 0.15 (1 year) to 0.36 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

SHRCX vs. DFSMX — Risk / Return Rank

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

SHRCX

SHRCX Risk / Return Rank: 74
SHRCX Sharpe Ratio Rank: 89
SHRCX Sortino Ratio Rank: 92
SHRCX Omega Ratio Rank: 92
SHRCX Calmar Ratio Rank: 53
SHRCX Martin Ratio Rank: 45

DFSMX

DFSMX Risk / Return Rank: 99
DFSMX Sharpe Ratio Rank: 99
DFSMX Sortino Ratio Rank: 99
DFSMX Omega Ratio Rank: 99
DFSMX Calmar Ratio Rank: 99
DFSMX Martin Ratio Rank: 99

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.

SHRCX vs. DFSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset California Municipals Fund (SHRCX) and DFA Short Term Municipal Bond Portfolio (DFSMX). 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.

	SHRCX	DFSMX	Difference
Sharpe ratio: Return per unit of total volatility	2.57	4.04	-1.47
Sortino ratio: Return per unit of downside risk	4.13	8.22	-4.09
Omega ratio: Gain probability vs. loss probability	1.62	4.32	-2.70
Calmar ratio: Return relative to maximum drawdown	2.46	12.33	-9.87
Martin ratio: Return relative to average drawdown	8.38	73.62	-65.24

SHRCX vs. DFSMX - Sharpe Ratio Comparison

The current SHRCX Sharpe Ratio is 2.57, which is lower than the DFSMX Sharpe Ratio of 4.04. The chart below compares the historical Sharpe Ratios of SHRCX and DFSMX, 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

SHRCX vs. DFSMX - Drawdown Comparison

The maximum SHRCX drawdown since its inception was -15.79%, which is greater than DFSMX's maximum drawdown of -2.66%. Use the drawdown chart below to compare losses from any high point for SHRCX and DFSMX.

Drawdown Indicators

	SHRCX	DFSMX	Difference
Max Drawdown Largest peak-to-trough decline	-15.79%	-2.66%	-13.13%
Max Drawdown (1Y) Largest decline over 1 year	-2.94%	-0.20%	-2.74%
Max Drawdown (3Y) Largest decline over 3 years	-5.77%	-0.49%	-5.28%
Max Drawdown (5Y) Largest decline over 5 years	-15.51%	-1.66%	-13.85%
Max Drawdown (10Y) Largest decline over 10 years	-15.51%	-1.69%	-13.82%
Current Drawdown Current decline from peak	-0.38%	0.00%	-0.38%
Average Drawdown Average peak-to-trough decline	-1.99%	-0.23%	-1.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	0.03%	+0.83%

Volatility

SHRCX vs. DFSMX - Volatility Comparison

Western Asset California Municipals Fund (SHRCX) has a higher volatility of 0.73% compared to DFA Short Term Municipal Bond Portfolio (DFSMX) at 0.18%. This indicates that SHRCX's price experiences larger fluctuations and is considered to be riskier than DFSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHRCX	DFSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.73%	0.18%	+0.55%
Volatility (6M) Calculated over the trailing 6-month period	2.03%	0.38%	+1.65%
Volatility (1Y) Calculated over the trailing 1-year period	2.82%	0.61%	+2.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.08%	0.79%	+3.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.10%	0.77%	+3.33%

SHRCX vs. DFSMX - Expense Ratio Comparison

SHRCX has a 0.76% expense ratio, which is higher than DFSMX's 0.20% expense ratio.

Dividends

SHRCX vs. DFSMX - Dividend Comparison

SHRCX's dividend yield for the trailing twelve months is around 2.93%, more than DFSMX's 2.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSMX DFA Short Term Municipal Bond Portfolio	2.35%	2.08%	2.80%	1.94%	0.63%	0.19%	0.83%	1.22%	1.11%	0.95%	0.94%	0.95%
SHRCX Western Asset California Municipals Fund	2.93%	4.13%	3.02%	2.55%	2.37%	3.10%	4.21%	3.93%	3.68%	3.94%	4.03%	4.31%

Frequently Asked Questions

Can I hold both SHRCX and DFSMX in my portfolio?

SHRCX and DFSMX have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHRCX or DFSMX?

SHRCX has higher volatility (0.73%) compared to DFSMX (0.18%). In terms of maximum drawdown, SHRCX dropped -15.79% vs DFSMX's -2.66%.

Which has better risk-adjusted returns?

DFSMX currently has the higher Sharpe Ratio (4.04 vs 2.57), 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.