SWCAX vs. PWZ

Last updated Jun 23, 2026

SWCAX (Schwab California Tax-Free Bond Fund™) and PWZ (Invesco California AMT-Free Municipal Bond ETF) are both Municipal Bonds funds. Over the past 10 years, SWCAX returned 1.48%/yr vs 1.81%/yr for PWZ. At a 0.50 correlation, their price movements are largely independent. SWCAX charges 0.48%/yr vs 0.28%/yr for PWZ.

Performance

SWCAX vs. PWZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab California Tax-Free Bond Fund™ (SWCAX) and Invesco California AMT-Free Municipal Bond ETF (PWZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWCAX achieves a 1.03% return, which is significantly lower than PWZ's 2.80% return. Over the past 10 years, SWCAX has underperformed PWZ with an annualized return of 1.48%, while PWZ has yielded a comparatively higher 1.81% annualized return.

SWCAX

• 1D: 0.09%
• 1M: 1.36%
• YTD: 1.03%
• 6M: 1.40%
• 1Y: 5.93%
• 3Y*: 3.19%
• 5Y*: 0.54%
• 10Y*: 1.48%

PWZ

• 1D: 0.10%
• 1M: 2.19%
• YTD: 2.80%
• 6M: 2.89%
• 1Y: 8.71%
• 3Y*: 2.96%
• 5Y*: 0.19%
• 10Y*: 1.81%

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

SWCAX vs. PWZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWCAX Schwab California Tax-Free Bond Fund™	1.03%	3.95%	1.51%	4.73%	-8.10%	0.36%	3.93%	6.02%	1.16%	4.37%
PWZ Invesco California AMT-Free Municipal Bond ETF	2.80%	1.26%	2.16%	6.55%	-11.35%	1.94%	4.90%	8.72%	0.32%	6.82%

Correlation

The correlation between SWCAX and PWZ is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Oct 18, 2007	0.50

The correlation between SWCAX and PWZ shifts across timeframes, from 0.50 (all time) to 0.63 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

SWCAX vs. PWZ — Risk / Return Rank

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

SWCAX

SWCAX Risk / Return Rank: 66
SWCAX Sharpe Ratio Rank: 85
SWCAX Sortino Ratio Rank: 90
SWCAX Omega Ratio Rank: 93
SWCAX Calmar Ratio Rank: 35
SWCAX Martin Ratio Rank: 29

PWZ

PWZ Risk / Return Rank: 63
PWZ Sharpe Ratio Rank: 64
PWZ Sortino Ratio Rank: 71
PWZ Omega Ratio Rank: 74
PWZ Calmar Ratio Rank: 53
PWZ Martin Ratio Rank: 54

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.

SWCAX vs. PWZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab California Tax-Free Bond Fund™ (SWCAX) and Invesco California AMT-Free Municipal Bond ETF (PWZ). 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	PWZ	Difference
Sharpe ratio: Return per unit of total volatility	2.57	2.04	+0.52
Sortino ratio: Return per unit of downside risk	4.06	3.09	+0.96
Omega ratio: Gain probability vs. loss probability	1.67	1.42	+0.25
Calmar ratio: Return relative to maximum drawdown	2.14	2.52	-0.38
Martin ratio: Return relative to average drawdown	6.36	9.11	-2.75

SWCAX vs. PWZ - Sharpe Ratio Comparison

The current SWCAX Sharpe Ratio is 2.57, which is comparable to the PWZ Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of SWCAX and PWZ, 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. PWZ - Drawdown Comparison

The maximum SWCAX drawdown since its inception was -13.51%, smaller than the maximum PWZ drawdown of -21.49%. Use the drawdown chart below to compare losses from any high point for SWCAX and PWZ.

Drawdown Indicators

	SWCAX	PWZ	Difference
Max Drawdown Largest peak-to-trough decline	-13.51%	-21.49%	+7.98%
Max Drawdown (1Y) Largest decline over 1 year	-2.75%	-3.47%	+0.72%
Max Drawdown (3Y) Largest decline over 3 years	-4.36%	-9.09%	+4.73%
Max Drawdown (5Y) Largest decline over 5 years	-12.30%	-17.56%	+5.26%
Max Drawdown (10Y) Largest decline over 10 years	-12.30%	-17.56%	+5.26%
Current Drawdown Current decline from peak	-0.92%	-0.22%	-0.70%
Average Drawdown Average peak-to-trough decline	-1.87%	-3.53%	+1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	0.96%	-0.04%

Volatility

SWCAX vs. PWZ - Volatility Comparison

The current volatility for Schwab California Tax-Free Bond Fund™ (SWCAX) is 0.62%, while Invesco California AMT-Free Municipal Bond ETF (PWZ) has a volatility of 1.06%. This indicates that SWCAX experiences smaller price fluctuations and is considered to be less risky than PWZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWCAX	PWZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.62%	1.06%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	1.79%	3.05%	-1.26%
Volatility (1Y) Calculated over the trailing 1-year period	2.29%	4.29%	-2.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.11%	6.25%	-3.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.37%	5.89%	-2.52%

SWCAX vs. PWZ - Expense Ratio Comparison

SWCAX has a 0.48% expense ratio, which is higher than PWZ's 0.28% expense ratio.

Dividends

SWCAX vs. PWZ - Dividend Comparison

SWCAX's dividend yield for the trailing twelve months is around 3.18%, less than PWZ's 3.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PWZ Invesco California AMT-Free Municipal Bond ETF	3.61%	3.41%	3.28%	2.84%	2.49%	2.28%	2.34%	2.51%	2.53%	2.48%	2.86%	3.16%
SWCAX Schwab California Tax-Free Bond Fund™	3.18%	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 PWZ in my portfolio?

SWCAX and PWZ have a correlation of 0.63, 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 PWZ?

PWZ has higher volatility (1.06%) compared to SWCAX (0.62%). In terms of maximum drawdown, SWCAX dropped -13.51% vs PWZ's -21.49%.

Which has better risk-adjusted returns?

SWCAX currently has the higher Sharpe Ratio (2.57 vs 2.04), 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.