SWCAX vs. SWSSX

Last updated Jun 4, 2026

SWCAX (Schwab California Tax-Free Bond Fund™) and SWSSX (Schwab Small-Cap Index Fund-Select Shares) are both mutual funds - SWCAX is a Municipal Bonds fund managed by Charles Schwab, while SWSSX is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Over the past 10 years, SWCAX returned 1.52%/yr vs 11.20%/yr for SWSSX. At a correlation of -0.09, they often move in opposite directions. SWCAX charges 0.48%/yr vs 0.04%/yr for SWSSX.

Performance

SWCAX vs. SWSSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab California Tax-Free Bond Fund™ (SWCAX) 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, SWCAX achieves a 0.94% return, which is significantly lower than SWSSX's 18.71% return. Over the past 10 years, SWCAX has underperformed SWSSX with an annualized return of 1.52%, while SWSSX has yielded a comparatively higher 11.20% annualized return.

SWCAX

• 1D: 0.09%
• 1M: 0.53%
• YTD: 0.94%
• 6M: 1.31%
• 1Y: 6.13%
• 3Y*: 3.22%
• 5Y*: 0.54%
• 10Y*: 1.52%

SWSSX

• 1D: 0.92%
• 1M: 5.00%
• YTD: 18.71%
• 6M: 17.43%
• 1Y: 41.24%
• 3Y*: 18.69%
• 5Y*: 6.65%
• 10Y*: 11.20%

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

SWCAX vs. SWSSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWCAX Schwab California Tax-Free Bond Fund™	0.94%	3.95%	1.51%	4.73%	-8.10%	0.36%	3.93%	6.02%	1.16%	4.37%
SWSSX Schwab Small-Cap Index Fund-Select Shares	18.71%	12.88%	11.57%	17.07%	-20.43%	14.77%	20.12%	25.63%	-11.19%	14.76%

Correlation

The correlation between SWCAX and SWSSX 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	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.11
Correlation (10Y) Calculated over the trailing 10-year period	0.01
Correlation (All Time) Calculated using the full available price history since Jan 5, 1998	-0.09

The correlation between SWCAX and SWSSX shifts across timeframes, from -0.09 (all time) to 0.15 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

SWCAX vs. SWSSX — 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: 83
SWCAX Sortino Ratio Rank: 89
SWCAX Omega Ratio Rank: 93
SWCAX Calmar Ratio Rank: 35
SWCAX Martin Ratio Rank: 29

SWSSX

SWSSX Risk / Return Rank: 64
SWSSX Sharpe Ratio Rank: 60
SWSSX Sortino Ratio Rank: 55
SWSSX Omega Ratio Rank: 47
SWSSX Calmar Ratio Rank: 84
SWSSX Martin Ratio Rank: 74

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. SWSSX - Risk-Adjusted Trends Comparison

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

	SWCAX	SWSSX	Difference
Sharpe ratio: Return per unit of total volatility	2.69	2.28	+0.41
Sortino ratio: Return per unit of downside risk	4.26	3.13	+1.13
Omega ratio: Gain probability vs. loss probability	1.71	1.37	+0.34
Calmar ratio: Return relative to maximum drawdown	2.25	3.97	-1.72
Martin ratio: Return relative to average drawdown	6.90	14.11	-7.21
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWCAX vs. SWSSX - Sharpe Ratio Comparison

The current SWCAX Sharpe Ratio is 2.69, which is comparable to the SWSSX Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of SWCAX 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.

Sharpe Ratios by Period

	SWCAX	SWSSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.69	2.28	+0.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.17	0.30	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.47	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	1.18	0.36	+0.82

Drawdowns

SWCAX vs. SWSSX - Drawdown Comparison

The maximum SWCAX drawdown since its inception was -13.51%, smaller than the maximum SWSSX drawdown of -60.34%. Use the drawdown chart below to compare losses from any high point for SWCAX and SWSSX.

Drawdown Indicators

	SWCAX	SWSSX	Difference
Max Drawdown Largest peak-to-trough decline	-13.51%	-60.34%	+46.83%
Max Drawdown (1Y) Largest decline over 1 year	-2.75%	-11.00%	+8.25%
Max Drawdown (3Y) Largest decline over 3 years	-4.36%	-27.50%	+23.14%
Max Drawdown (5Y) Largest decline over 5 years	-12.30%	-31.93%	+19.63%
Max Drawdown (10Y) Largest decline over 10 years	-12.30%	-41.81%	+29.51%
Current Drawdown Current decline from peak	-1.01%	-0.13%	-0.88%
Average Drawdown Average peak-to-trough decline	-1.87%	-10.73%	+8.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.89%	3.09%	-2.20%

Volatility

SWCAX vs. SWSSX - Volatility Comparison

The current volatility for Schwab California Tax-Free Bond Fund™ (SWCAX) is 0.92%, while Schwab Small-Cap Index Fund-Select Shares (SWSSX) has a volatility of 5.61%. This indicates that SWCAX experiences smaller price fluctuations and is considered to be less risky than SWSSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWCAX	SWSSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.92%	5.61%	-4.69%
Volatility (6M) Calculated over the trailing 6-month period	1.81%	13.60%	-11.79%
Volatility (1Y) Calculated over the trailing 1-year period	2.31%	19.15%	-16.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.11%	22.59%	-19.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.37%	24.09%	-20.72%

SWCAX vs. SWSSX - Expense Ratio Comparison

SWCAX has a 0.48% expense ratio, which is higher than SWSSX's 0.04% expense ratio.

Dividends

SWCAX vs. SWSSX - Dividend Comparison

SWCAX's dividend yield for the trailing twelve months is around 3.19%, more than SWSSX's 1.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWCAX Schwab California Tax-Free Bond Fund™	3.19%	3.46%	2.67%	2.23%	1.57%	1.68%	2.45%	2.54%	2.50%	2.22%	3.10%	2.79%
SWSSX Schwab Small-Cap Index Fund-Select Shares	1.08%	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 SWCAX and SWSSX in my portfolio?

SWCAX and SWSSX 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, SWCAX or SWSSX?

SWSSX has higher volatility (5.61%) compared to SWCAX (0.92%). In terms of maximum drawdown, SWCAX dropped -13.51% vs SWSSX's -60.34%.

Which has better risk-adjusted returns?

SWCAX currently has the higher Sharpe Ratio (2.69 vs 2.28), 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.