SWJRX vs. SWLRX

Last updated Jun 3, 2026

SWJRX (Schwab Monthly Income Fund - Moderate Payout) and SWLRX (Schwab Monthly Income Fund - Maximum Payout) are both Diversified Portfolio funds from Charles Schwab. Over the past 10 years, SWJRX returned 5.22%/yr vs 3.47%/yr for SWLRX. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.00% expense ratio.

Performance

SWJRX vs. SWLRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Monthly Income Fund - Moderate Payout (SWJRX) and Schwab Monthly Income Fund - Maximum Payout (SWLRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWJRX achieves a 6.30% return, which is significantly higher than SWLRX's 4.16% return. Over the past 10 years, SWJRX has outperformed SWLRX with an annualized return of 5.22%, while SWLRX has yielded a comparatively lower 3.47% annualized return.

SWJRX

• 1D: -0.45%
• 1M: 0.04%
• YTD: 6.30%
• 6M: 7.14%
• 1Y: 13.90%
• 3Y*: 9.80%
• 5Y*: 3.85%
• 10Y*: 5.22%

SWLRX

• 1D: -0.30%
• 1M: 0.17%
• YTD: 4.16%
• 6M: 4.66%
• 1Y: 10.63%
• 3Y*: 7.96%
• 5Y*: 2.64%
• 10Y*: 3.47%

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

SWJRX vs. SWLRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWJRX Schwab Monthly Income Fund - Moderate Payout	6.30%	12.17%	3.83%	8.79%	-12.81%	9.23%	5.32%	16.40%	-6.31%	10.80%
SWLRX Schwab Monthly Income Fund - Maximum Payout	4.16%	9.85%	3.75%	8.04%	-12.49%	2.33%	6.93%	11.18%	-2.31%	5.64%

Correlation

The correlation between SWJRX and SWLRX is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Apr 1, 2008	0.74

The correlation between SWJRX and SWLRX shifts across timeframes, from 0.74 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

SWJRX vs. SWLRX — Risk / Return Rank

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

SWJRX

SWJRX Risk / Return Rank: 69
SWJRX Sharpe Ratio Rank: 75
SWJRX Sortino Ratio Rank: 77
SWJRX Omega Ratio Rank: 71
SWJRX Calmar Ratio Rank: 66
SWJRX Martin Ratio Rank: 56

SWLRX

SWLRX Risk / Return Rank: 66
SWLRX Sharpe Ratio Rank: 70
SWLRX Sortino Ratio Rank: 73
SWLRX Omega Ratio Rank: 69
SWLRX Calmar Ratio Rank: 63
SWLRX Martin Ratio Rank: 55

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.

SWJRX vs. SWLRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Monthly Income Fund - Moderate Payout (SWJRX) and Schwab Monthly Income Fund - Maximum Payout (SWLRX). 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.

	SWJRX	SWLRX	Difference
Sharpe ratio Return per unit of total volatility	2.52	2.44	+0.09
Sortino ratio Return per unit of downside risk	3.68	3.56	+0.13
Omega ratio Gain probability vs. loss probability	1.47	1.46	+0.01
Calmar ratio Return relative to maximum drawdown	3.14	3.07	+0.06
Martin ratio Return relative to average drawdown	11.42	11.30	+0.12
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWJRX vs. SWLRX - Sharpe Ratio Comparison

The current SWJRX Sharpe Ratio is 2.52, which is comparable to the SWLRX Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of SWJRX and SWLRX, 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

	SWJRX	SWLRX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.52	2.44	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.43	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.68	-0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.82	-0.22

Drawdowns

SWJRX vs. SWLRX - Drawdown Comparison

The maximum SWJRX drawdown since its inception was -25.61%, which is greater than SWLRX's maximum drawdown of -18.60%. Use the drawdown chart below to compare losses from any high point for SWJRX and SWLRX.

Drawdown Indicators

	SWJRX	SWLRX	Difference
Max Drawdown Largest peak-to-trough decline	-25.61%	-18.60%	-7.01%
Max Drawdown (1Y) Largest decline over 1 year	-4.55%	-3.49%	-1.06%
Max Drawdown (3Y) Largest decline over 3 years	-8.18%	-6.47%	-1.71%
Max Drawdown (5Y) Largest decline over 5 years	-20.87%	-18.60%	-2.27%
Max Drawdown (10Y) Largest decline over 10 years	-20.87%	-18.60%	-2.27%
Current Drawdown Current decline from peak	-1.11%	-0.84%	-0.27%
Average Drawdown Average peak-to-trough decline	-3.89%	-2.36%	-1.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.25%	0.95%	+0.30%

Volatility

SWJRX vs. SWLRX - Volatility Comparison

Schwab Monthly Income Fund - Moderate Payout (SWJRX) has a higher volatility of 1.65% compared to Schwab Monthly Income Fund - Maximum Payout (SWLRX) at 1.33%. This indicates that SWJRX's price experiences larger fluctuations and is considered to be riskier than SWLRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWJRX	SWLRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.65%	1.33%	+0.32%
Volatility (6M) Calculated over the trailing 6-month period	4.30%	3.33%	+0.97%
Volatility (1Y) Calculated over the trailing 1-year period	5.67%	4.39%	+1.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.71%	6.20%	+2.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.58%	5.13%	+3.45%

SWJRX vs. SWLRX - Expense Ratio Comparison

SWJRX has a 0.00% expense ratio, which is lower than SWLRX's 0.00% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SWJRX vs. SWLRX - Dividend Comparison

SWJRX's dividend yield for the trailing twelve months is around 4.69%, more than SWLRX's 4.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWJRX Schwab Monthly Income Fund - Moderate Payout	4.69%	4.78%	4.94%	4.80%	8.67%	3.62%	2.49%	5.36%	3.47%	2.93%	6.05%	6.80%
SWLRX Schwab Monthly Income Fund - Maximum Payout	4.59%	4.63%	4.94%	4.10%	4.63%	3.07%	2.19%	3.22%	3.30%	2.47%	4.00%	4.31%

Frequently Asked Questions

Can I hold both SWJRX and SWLRX in my portfolio?

With a correlation of 0.94, SWJRX and SWLRX 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, SWJRX or SWLRX?

SWJRX has higher volatility (1.65%) compared to SWLRX (1.33%). In terms of maximum drawdown, SWJRX dropped -25.61% vs SWLRX's -18.60%.

Which has better risk-adjusted returns?

SWJRX currently has the higher Sharpe Ratio (2.52 vs 2.44), 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.