SWKRX vs. SWOBX

Last updated Jun 4, 2026

SWKRX (Schwab Monthly Income Fund - Enhanced Payout) and SWOBX (Schwab Balanced Fund™) are both Diversified Portfolio funds from Charles Schwab. Over the past 10 years, SWKRX returned 4.65%/yr vs 8.92%/yr for SWOBX. Their correlation of 0.81 suggests significant overlap in exposure. Both charge a 0.00% expense ratio.

Performance

SWKRX vs. SWOBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Monthly Income Fund - Enhanced Payout (SWKRX) and Schwab Balanced Fund™ (SWOBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with SWKRX having a 6.55% return and SWOBX slightly lower at 6.26%. Over the past 10 years, SWKRX has underperformed SWOBX with an annualized return of 4.65%, while SWOBX has yielded a comparatively higher 8.92% annualized return.

SWKRX

• 1D: 0.18%
• 1M: 0.99%
• YTD: 6.55%
• 6M: 6.94%
• 1Y: 14.25%
• 3Y*: 9.87%
• 5Y*: 3.87%
• 10Y*: 4.65%

SWOBX

• 1D: 0.05%
• 1M: 3.09%
• YTD: 6.26%
• 6M: 6.11%
• 1Y: 17.29%
• 3Y*: 13.39%
• 5Y*: 6.93%
• 10Y*: 8.92%

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

SWKRX vs. SWOBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWKRX Schwab Monthly Income Fund - Enhanced Payout	6.55%	12.14%	3.85%	8.71%	-12.47%	5.73%	6.11%	13.79%	-4.20%	8.19%
SWOBX Schwab Balanced Fund™	6.26%	12.76%	12.51%	18.25%	-18.86%	14.76%	14.73%	20.13%	-4.35%	15.52%

Correlation

The correlation between SWKRX and SWOBX is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Apr 1, 2008	0.81

Over the past year, the correlation between SWKRX and SWOBX has dropped to 0.60 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

Return for Risk

SWKRX vs. SWOBX — Risk / Return Rank

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

SWKRX

SWKRX Risk / Return Rank: 70
SWKRX Sharpe Ratio Rank: 76
SWKRX Sortino Ratio Rank: 77
SWKRX Omega Ratio Rank: 71
SWKRX Calmar Ratio Rank: 67
SWKRX Martin Ratio Rank: 58

SWOBX

SWOBX Risk / Return Rank: 51
SWOBX Sharpe Ratio Rank: 49
SWOBX Sortino Ratio Rank: 49
SWOBX Omega Ratio Rank: 48
SWOBX Calmar Ratio Rank: 49
SWOBX Martin Ratio Rank: 60

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.

SWKRX vs. SWOBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Monthly Income Fund - Enhanced Payout (SWKRX) and Schwab Balanced Fund™ (SWOBX). 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.

	SWKRX	SWOBX	Difference
Sharpe ratio: Return per unit of total volatility	2.53	2.06	+0.47
Sortino ratio: Return per unit of downside risk	3.68	2.96	+0.72
Omega ratio: Gain probability vs. loss probability	1.47	1.38	+0.09
Calmar ratio: Return relative to maximum drawdown	3.16	2.68	+0.48
Martin ratio: Return relative to average drawdown	11.61	11.90	-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.

SWKRX vs. SWOBX - Sharpe Ratio Comparison

The current SWKRX Sharpe Ratio is 2.53, which is comparable to the SWOBX Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of SWKRX and SWOBX, 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

	SWKRX	SWOBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.53	2.06	+0.47
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	0.50	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.66	0.70	-0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	0.61	+0.11

Drawdowns

SWKRX vs. SWOBX - Drawdown Comparison

The maximum SWKRX drawdown since its inception was -20.69%, smaller than the maximum SWOBX drawdown of -35.99%. Use the drawdown chart below to compare losses from any high point for SWKRX and SWOBX.

Drawdown Indicators

	SWKRX	SWOBX	Difference
Max Drawdown Largest peak-to-trough decline	-20.69%	-35.99%	+15.30%
Max Drawdown (1Y) Largest decline over 1 year	-4.53%	-6.58%	+2.05%
Max Drawdown (3Y) Largest decline over 3 years	-8.15%	-11.72%	+3.57%
Max Drawdown (5Y) Largest decline over 5 years	-20.69%	-28.30%	+7.61%
Max Drawdown (10Y) Largest decline over 10 years	-20.69%	-28.30%	+7.61%
Current Drawdown Current decline from peak	-0.84%	0.00%	-0.84%
Average Drawdown Average peak-to-trough decline	-3.08%	-6.21%	+3.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.23%	1.48%	-0.25%

Volatility

SWKRX vs. SWOBX - Volatility Comparison

The current volatility for Schwab Monthly Income Fund - Enhanced Payout (SWKRX) is 1.65%, while Schwab Balanced Fund™ (SWOBX) has a volatility of 2.53%. This indicates that SWKRX experiences smaller price fluctuations and is considered to be less risky than SWOBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWKRX	SWOBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.65%	2.53%	-0.88%
Volatility (6M) Calculated over the trailing 6-month period	4.32%	6.74%	-2.42%
Volatility (1Y) Calculated over the trailing 1-year period	5.67%	8.58%	-2.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.11%	13.96%	-5.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.07%	12.88%	-5.81%

SWKRX vs. SWOBX - Expense Ratio Comparison

SWKRX has a 0.00% expense ratio, which is lower than SWOBX'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

SWKRX vs. SWOBX - Dividend Comparison

SWKRX's dividend yield for the trailing twelve months is around 4.26%, less than SWOBX's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWKRX Schwab Monthly Income Fund - Enhanced Payout	4.26%	4.41%	4.73%	4.69%	7.47%	3.93%	3.02%	4.66%	3.10%	2.71%	4.71%	2.27%
SWOBX Schwab Balanced Fund™	5.15%	5.47%	4.94%	5.67%	10.21%	6.47%	2.97%	5.21%	7.11%	3.20%	7.83%	7.66%

Frequently Asked Questions

Can I hold both SWKRX and SWOBX in my portfolio?

SWKRX and SWOBX have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWKRX or SWOBX?

SWOBX has higher volatility (2.53%) compared to SWKRX (1.65%). In terms of maximum drawdown, SWKRX dropped -20.69% vs SWOBX's -35.99%.

Which has better risk-adjusted returns?

SWKRX currently has the higher Sharpe Ratio (2.53 vs 2.06), 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.