SWAGX vs. VTBNX

Last updated Jun 3, 2026

SWAGX (Schwab U.S. Aggregate Bond Index Fund) and VTBNX (Vanguard Total Bond Market II Index Fund) are both Total Bond Market funds. Over the past 5 years, SWAGX returned -0.03%/yr vs 0.17%/yr for VTBNX. With a 0.95 correlation, they move nearly in lockstep. SWAGX charges 0.04%/yr vs 0.02%/yr for VTBNX.

Performance

SWAGX vs. VTBNX - Performance Comparison

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

Returns By Period

In the year-to-date period, SWAGX achieves a 0.38% return, which is significantly higher than VTBNX's 0.33% return.

SWAGX

• 1D: -0.11%
• 1M: 0.13%
• YTD: 0.38%
• 6M: 0.41%
• 1Y: 5.25%
• 3Y*: 3.97%
• 5Y*: -0.03%
• 10Y*: —

VTBNX

• 1D: -0.11%
• 1M: 0.14%
• YTD: 0.33%
• 6M: 0.46%
• 1Y: 5.21%
• 3Y*: 4.01%
• 5Y*: 0.17%
• 10Y*: 1.55%

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

SWAGX vs. VTBNX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VTBNX Vanguard Total Bond Market II Index Fund	0.33%	7.18%	1.32%	5.68%	-13.12%	-1.82%	7.39%	8.71%	-0.27%	2.92%

Correlation

The correlation between SWAGX and VTBNX is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Feb 24, 2017	0.95

The correlation between SWAGX and VTBNX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

Return for Risk

SWAGX vs. VTBNX — Risk / Return Rank

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

SWAGX

SWAGX Risk / Return Rank: 19
SWAGX Sharpe Ratio Rank: 18
SWAGX Sortino Ratio Rank: 19
SWAGX Omega Ratio Rank: 16
SWAGX Calmar Ratio Rank: 22
SWAGX Martin Ratio Rank: 20

VTBNX

VTBNX Risk / Return Rank: 20
VTBNX Sharpe Ratio Rank: 18
VTBNX Sortino Ratio Rank: 19
VTBNX Omega Ratio Rank: 16
VTBNX Calmar Ratio Rank: 25
VTBNX Martin Ratio Rank: 22

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.

SWAGX vs. VTBNX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Aggregate Bond Index Fund (SWAGX) and Vanguard Total Bond Market II Index Fund (VTBNX). 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.

	SWAGX	VTBNX	Difference
Sharpe ratio Return per unit of total volatility	1.25	1.25	0.00
Sortino ratio Return per unit of downside risk	1.90	1.89	+0.01
Omega ratio Gain probability vs. loss probability	1.22	1.22	0.00
Calmar ratio Return relative to maximum drawdown	1.80	1.93	-0.13
Martin ratio Return relative to average drawdown	5.51	5.80	-0.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWAGX vs. VTBNX - Sharpe Ratio Comparison

The current SWAGX Sharpe Ratio is 1.25, which is comparable to the VTBNX Sharpe Ratio of 1.25. The chart below compares the historical Sharpe Ratios of SWAGX and VTBNX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SWAGX	VTBNX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.25	1.25	0.00
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.01	0.03	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.32	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.38	-0.06

Drawdowns

SWAGX vs. VTBNX - Drawdown Comparison

The maximum SWAGX drawdown since its inception was -19.68%, which is greater than VTBNX's maximum drawdown of -18.71%. Use the drawdown chart below to compare losses from any high point for SWAGX and VTBNX.

Drawdown Indicators

	SWAGX	VTBNX	Difference
Max Drawdown Largest peak-to-trough decline	-19.68%	-18.71%	-0.97%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	-2.83%	-0.22%
Max Drawdown (3Y) Largest decline over 3 years	-6.14%	-5.97%	-0.17%
Max Drawdown (5Y) Largest decline over 5 years	-18.76%	-18.05%	-0.71%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.71%	—
Current Drawdown Current decline from peak	-3.38%	-2.21%	-1.17%
Average Drawdown Average peak-to-trough decline	-5.68%	-4.87%	-0.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.00%	0.94%	+0.06%

Volatility

SWAGX vs. VTBNX - Volatility Comparison

Schwab U.S. Aggregate Bond Index Fund (SWAGX) and Vanguard Total Bond Market II Index Fund (VTBNX) have volatilities of 1.35% and 1.33%, 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

	SWAGX	VTBNX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.35%	1.33%	+0.02%
Volatility (6M) Calculated over the trailing 6-month period	2.94%	2.81%	+0.13%
Volatility (1Y) Calculated over the trailing 1-year period	4.03%	3.93%	+0.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.08%	5.96%	+0.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.12%	4.93%	+0.19%

SWAGX vs. VTBNX - Expense Ratio Comparison

SWAGX has a 0.04% expense ratio, which is higher than VTBNX's 0.02% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SWAGX vs. VTBNX - Dividend Comparison

SWAGX's dividend yield for the trailing twelve months is around 4.13%, more than VTBNX's 4.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
VTBNX Vanguard Total Bond Market II Index Fund	4.06%	3.95%	3.77%	3.13%	2.54%	1.82%	3.12%	2.79%	2.56%	2.52%	2.55%

Frequently Asked Questions

Can I hold both SWAGX and VTBNX in my portfolio?

With a correlation of 0.96, SWAGX and VTBNX 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, SWAGX or VTBNX?

SWAGX has higher volatility (1.35%) compared to VTBNX (1.33%). In terms of maximum drawdown, SWAGX dropped -19.68% vs VTBNX's -18.71%.

Which has better risk-adjusted returns?

SWAGX currently has the higher Sharpe Ratio (1.25 vs 1.25), 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.