SMEAX vs. SWSSX

Last updated Jun 24, 2026

SMEAX (Invesco Small Cap Equity Fund Class A) and SWSSX (Schwab Small-Cap Index Fund-Select Shares) are both Small Cap Blend Equities funds. Over the past 10 years, SMEAX returned 11.60%/yr vs 11.83%/yr for SWSSX. With a 0.96 correlation, they move nearly in lockstep. SMEAX charges 1.22%/yr vs 0.04%/yr for SWSSX.

Performance

SMEAX vs. SWSSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Small Cap Equity Fund Class A (SMEAX) 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, SMEAX achieves a 23.19% return, which is significantly higher than SWSSX's 21.72% return. Both investments have delivered pretty close results over the past 10 years, with SMEAX having a 11.60% annualized return and SWSSX not far ahead at 11.83%.

SMEAX

• 1D: 0.97%
• 1M: 7.38%
• YTD: 23.19%
• 6M: 20.43%
• 1Y: 32.04%
• 3Y*: 19.74%
• 5Y*: 8.11%
• 10Y*: 11.60%

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)

SMEAX vs. SWSSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMEAX Invesco Small Cap Equity Fund Class A	23.19%	7.84%	17.80%	15.95%	-20.62%	19.62%	27.25%	26.05%	-15.42%	13.59%
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 SMEAX and SWSSX is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 2, 2001	0.96

The correlation between SMEAX and SWSSX has been stable across timeframes, ranging from 0.92 to 0.96 - a consistent structural relationship.

Return for Risk

SMEAX vs. SWSSX — Risk / Return Rank

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

SMEAX

SMEAX Risk / Return Rank: 40
SMEAX Sharpe Ratio Rank: 36
SMEAX Sortino Ratio Rank: 35
SMEAX Omega Ratio Rank: 34
SMEAX Calmar Ratio Rank: 49
SMEAX Martin Ratio Rank: 48

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.

SMEAX vs. SWSSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Small Cap Equity Fund Class A (SMEAX) 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.

	SMEAX	SWSSX	Difference
Sharpe ratio: Return per unit of total volatility	1.63	2.26	-0.63
Sortino ratio: Return per unit of downside risk	2.28	3.07	-0.79
Omega ratio: Gain probability vs. loss probability	1.29	1.37	-0.08
Calmar ratio: Return relative to maximum drawdown	2.55	4.04	-1.49
Martin ratio: Return relative to average drawdown	9.39	14.31	-4.92

SMEAX vs. SWSSX - Sharpe Ratio Comparison

The current SMEAX Sharpe Ratio is 1.63, which is comparable to the SWSSX Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of SMEAX 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

SMEAX vs. SWSSX - Drawdown Comparison

The maximum SMEAX drawdown since its inception was -56.69%, smaller than the maximum SWSSX drawdown of -60.34%. Use the drawdown chart below to compare losses from any high point for SMEAX and SWSSX.

Drawdown Indicators

	SMEAX	SWSSX	Difference
Max Drawdown Largest peak-to-trough decline	-56.69%	-60.34%	+3.65%
Max Drawdown (1Y) Largest decline over 1 year	-13.43%	-11.00%	-2.43%
Max Drawdown (3Y) Largest decline over 3 years	-24.61%	-27.50%	+2.89%
Max Drawdown (5Y) Largest decline over 5 years	-31.42%	-31.93%	+0.51%
Max Drawdown (10Y) Largest decline over 10 years	-45.01%	-41.81%	-3.20%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.39%	-10.71%	+0.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.64%	3.10%	+0.54%

Volatility

SMEAX vs. SWSSX - Volatility Comparison

Invesco Small Cap Equity Fund Class A (SMEAX) has a higher volatility of 7.60% compared to Schwab Small-Cap Index Fund-Select Shares (SWSSX) at 6.39%. This indicates that SMEAX's price experiences larger fluctuations and is considered to be riskier than SWSSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMEAX	SWSSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.60%	6.39%	+1.21%
Volatility (6M) Calculated over the trailing 6-month period	17.25%	14.33%	+2.92%
Volatility (1Y) Calculated over the trailing 1-year period	21.12%	19.75%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.76%	22.68%	-0.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.21%	24.15%	-0.94%

SMEAX vs. SWSSX - Expense Ratio Comparison

SMEAX has a 1.22% expense ratio, which is higher than SWSSX's 0.04% expense ratio.

Dividends

SMEAX vs. SWSSX - Dividend Comparison

SMEAX's dividend yield for the trailing twelve months is around 7.58%, more than SWSSX's 1.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMEAX Invesco Small Cap Equity Fund Class A	7.58%	9.34%	8.09%	0.40%	2.95%	19.02%	6.03%	11.18%	18.53%	5.38%	5.38%	6.51%
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 SMEAX and SWSSX in my portfolio?

With a correlation of 0.92, SMEAX 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, SMEAX or SWSSX?

SMEAX has higher volatility (7.60%) compared to SWSSX (6.39%). In terms of maximum drawdown, SMEAX dropped -56.69% vs SWSSX's -60.34%.

Which has better risk-adjusted returns?

SWSSX currently has the higher Sharpe Ratio (2.26 vs 1.63), 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.