SWCAX vs. DFSMX

Last updated Aug 4, 2026

SWCAX (Schwab California Tax-Free Bond Fund™) and DFSMX (DFA Short Term Municipal Bond Portfolio) are both Municipal Bonds funds. Over the past 10 years, SWCAX returned 1.29%/yr vs 1.23%/yr for DFSMX. Their 0.41 correlation means their historical movements had little consistent relationship. SWCAX charges 0.48%/yr vs 0.20%/yr for DFSMX.

Performance

SWCAX vs. DFSMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab California Tax-Free Bond Fund™ (SWCAX) 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, SWCAX achieves a -0.44% return, which is significantly lower than DFSMX's 1.27% return. Both investments have delivered pretty close results over the past 10 years, with SWCAX having a 1.29% annualized return and DFSMX not far behind at 1.23%.

SWCAX

• 1D: -0.09%
• 1M: -1.89%
• 6M: -1.23%
• YTD: -0.44%
• 1Y: 3.73%
• 3Y*: 2.56%
• 5Y*: 0.08%
• 10Y*: 1.29%
• ALL TIME*: 4.11%

DFSMX

• 1D: 0.01%
• 1M: 0.11%
• 6M: 0.95%
• YTD: 1.27%
• 1Y: 2.25%
• 3Y*: 2.65%
• 5Y*: 1.76%
• 10Y*: 1.23%
• ALL TIME*: 1.62%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DFSMX DFA Short Term Municipal Bond Portfolio	$0.00	$0.00	$0.00
SWCAX Schwab California Tax-Free Bond Fund™	$0.00	$0.00	$0.00

SWCAX vs. DFSMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWCAX Schwab California Tax-Free Bond Fund™	-0.44%	3.95%	1.51%	4.73%	-8.10%	0.36%	3.93%	6.02%	1.16%	4.37%
DFSMX DFA Short Term Municipal Bond Portfolio	1.27%	2.30%	2.84%	2.98%	-0.36%	-0.11%	0.83%	1.62%	1.22%	1.15%

Correlation

The correlation between SWCAX and DFSMX is 0.23, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.23
Correlation (3Y) Balances recent behavior with more history.	0.27
Correlation (5Y) Shows whether the relationship held over a longer period.	0.37
Correlation (10Y) Provides a long-term view across more market conditions.	0.33
Correlation (All Time) Calculated using the full available price history since Aug 22, 2002	0.41

The correlation between SWCAX and DFSMX shifts across timeframes, from 0.23 (1 year) to 0.41 (all time), reflecting how their relationship changes across market environments.

Return for Risk

SWCAX vs. DFSMX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SWCAX

SWCAX Risk / Return Rank: 56
SWCAX Sharpe Ratio Rank: 68
SWCAX Sortino Ratio Rank: 71
SWCAX Omega Ratio Rank: 82
SWCAX Calmar Ratio Rank: 31
SWCAX Martin Ratio Rank: 26

DFSMX

DFSMX Risk / Return Rank: 100
DFSMX Sharpe Ratio Rank: 99
DFSMX Sortino Ratio Rank: 100
DFSMX Omega Ratio Rank: 100
DFSMX Calmar Ratio Rank: 100
DFSMX Martin Ratio Rank: 100

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SWCAX vs. DFSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab California Tax-Free Bond Fund™ (SWCAX) 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.

	SWCAX	DFSMX	Difference
Sharpe ratio: Return per unit of total volatility	1.69	4.43	-2.75
Sortino ratio: Return per unit of downside risk	2.49	11.32	-8.83
Omega ratio: Gain probability vs. loss probability	1.40	5.99	-4.59
Calmar ratio: Return relative to maximum drawdown	1.47	22.52	-21.05
Martin ratio: Return relative to average drawdown	3.94	86.52	-82.59

SWCAX vs. DFSMX - Sharpe Ratio Comparison

The current SWCAX Sharpe Ratio is 1.69, which is lower than the DFSMX Sharpe Ratio of 4.43. The chart below compares the historical Sharpe Ratios of SWCAX 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

SWCAX vs. DFSMX - Drawdown Comparison

The maximum SWCAX drawdown since its inception was -13.51%, which is greater than DFSMX's maximum drawdown of -2.66%. Use the drawdown chart below to compare losses from any high point for SWCAX and DFSMX.

Drawdown Indicators

	SWCAX	DFSMX	Difference
Max Drawdown Largest peak-to-trough decline	-13.51%	-2.66%	-10.85%
Max Drawdown (1Y) Largest decline over 1 year	-2.75%	-0.11%	-2.64%
Max Drawdown (3Y) Largest decline over 3 years	-4.36%	-0.49%	-3.87%
Max Drawdown (5Y) Largest decline over 5 years	-12.30%	-1.66%	-10.64%
Max Drawdown (10Y) Largest decline over 10 years	-12.30%	-1.69%	-10.61%
Current Drawdown Current decline from peak	-2.37%	0.00%	-2.37%
Average Drawdown Average peak-to-trough decline	-1.87%	-0.23%	-1.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.03%	0.03%	+1.00%

Volatility

SWCAX vs. DFSMX - Volatility Comparison

Schwab California Tax-Free Bond Fund™ (SWCAX) has a higher volatility of 0.83% compared to DFA Short Term Municipal Bond Portfolio (DFSMX) at 0.17%. This indicates that SWCAX'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

	SWCAX	DFSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.83%	0.17%	+0.66%
Volatility (6M) Calculated over the trailing 6-month period	1.98%	0.38%	+1.60%
Volatility (1Y) Calculated over the trailing 1-year period	2.43%	0.54%	+1.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.14%	0.79%	+2.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.37%	0.76%	+2.61%

SWCAX vs. DFSMX - Expense Ratio Comparison

SWCAX has a 0.48% expense ratio, which is higher than DFSMX's 0.20% expense ratio.

Dividends

SWCAX vs. DFSMX - Dividend Comparison

SWCAX's dividend yield for the trailing twelve months is around 2.97%, more than DFSMX's 2.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSMX DFA Short Term Municipal Bond Portfolio	2.53%	2.08%	2.80%	1.94%	0.63%	0.19%	0.83%	1.22%	1.11%	0.95%	0.94%	0.95%
SWCAX Schwab California Tax-Free Bond Fund™	2.97%	3.46%	2.67%	2.23%	1.57%	1.68%	2.45%	2.54%	2.50%	2.22%	3.10%	2.79%

Frequently Asked Questions

Can I hold both SWCAX and DFSMX in my portfolio?

SWCAX and DFSMX have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWCAX or DFSMX?

SWCAX has higher volatility (0.83%) compared to DFSMX (0.17%). In terms of maximum drawdown, SWCAX dropped -13.51% vs DFSMX's -2.66%.

Which has better risk-adjusted returns?

DFSMX currently has the higher Sharpe Ratio (4.43 vs 1.69), 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.