SWMCX vs. SCHD

Last updated Jul 14, 2026

SWMCX (Schwab U.S. Mid-Cap Index Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both funds - SWMCX is a Mid Cap Blend Equities fund managed by Charles Schwab, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Over the past 5 years, SWMCX returned 8.23%/yr vs 9.00%/yr for SCHD. Their correlation of 0.82 suggests significant overlap in exposure. SWMCX charges 0.04%/yr vs 0.06%/yr for SCHD.

Performance

SWMCX vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Mid-Cap Index Fund (SWMCX) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWMCX achieves a 14.87% return, which is significantly lower than SCHD's 20.66% return.

SWMCX

• 1D: 0.00%
• 1M: 1.41%
• 6M: 10.49%
• YTD: 14.87%
• 1Y: 19.57%
• 3Y*: 16.12%
• 5Y*: 8.23%
• 10Y*: —

SCHD

• 1D: 0.49%
• 1M: -0.00%
• 6M: 16.13%
• YTD: 20.66%
• 1Y: 23.51%
• 3Y*: 14.13%
• 5Y*: 9.00%
• 10Y*: 12.34%

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

SWMCX vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWMCX Schwab U.S. Mid-Cap Index Fund	14.87%	10.54%	15.28%	17.20%	-17.31%	22.55%	17.03%	30.46%	-9.16%	0.40%
SCHD Schwab U.S. Dividend Equity ETF	20.66%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	-0.00%

Correlation

The correlation between SWMCX and SCHD is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Dec 19, 2017	0.82

Over the past year, the correlation between SWMCX and SCHD has dropped to 0.58 - well below their long-term average of 0.82, suggesting their price drivers have been diverging.

SWMCX vs. SCHD - Sectors Allocation Comparison

Sectors	SWMCX	SCHD
Technology	19.6%	19.4%
Industrials	18.1%	7.4%
Financial Services	12.2%	9.1%
Consumer Cyclical	11.0%	6.7%
Healthcare	8.7%	18.4%
Real Estate	6.8%	-
Energy	6.5%	14.6%
Utilities	5.7%	0.0%
Basic Materials	4.2%	1.2%
Consumer Defensive	3.9%	18.5%
Communication Services	3.3%	6.0%

Return for Risk

SWMCX vs. SCHD — Risk / Return Rank

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

SWMCX

SWMCX Risk / Return Rank: 44
SWMCX Sharpe Ratio Rank: 37
SWMCX Sortino Ratio Rank: 38
SWMCX Omega Ratio Rank: 35
SWMCX Calmar Ratio Rank: 55
SWMCX Martin Ratio Rank: 55

SCHD

SCHD Risk / Return Rank: 86
SCHD Sharpe Ratio Rank: 85
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 82
SCHD Calmar Ratio Rank: 93
SCHD Martin Ratio Rank: 81

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.

SWMCX vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Mid-Cap Index Fund (SWMCX) and Schwab U.S. Dividend Equity ETF (SCHD). 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.

	SWMCX	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.35	2.17	-0.82
Sortino ratio: Return per unit of downside risk	1.97	3.32	-1.34
Omega ratio: Gain probability vs. loss probability	1.24	1.38	-0.15
Calmar ratio: Return relative to maximum drawdown	2.29	5.12	-2.82
Martin ratio: Return relative to average drawdown	8.75	12.47	-3.72

SWMCX vs. SCHD - Sharpe Ratio Comparison

The current SWMCX Sharpe Ratio is 1.35, which is lower than the SCHD Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of SWMCX and SCHD, 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

SWMCX vs. SCHD - Drawdown Comparison

The maximum SWMCX drawdown since its inception was -40.34%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for SWMCX and SCHD.

Drawdown Indicators

	SWMCX	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-40.34%	-33.37%	-6.97%
Max Drawdown (1Y) Largest decline over 1 year	-8.15%	-4.61%	-3.54%
Max Drawdown (3Y) Largest decline over 3 years	-21.07%	-16.13%	-4.94%
Max Drawdown (5Y) Largest decline over 5 years	-26.09%	-16.85%	-9.24%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	-0.54%	-0.03%	-0.51%
Average Drawdown Average peak-to-trough decline	-6.56%	-3.31%	-3.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.14%	1.89%	+0.25%

Volatility

SWMCX vs. SCHD - Volatility Comparison

Schwab U.S. Mid-Cap Index Fund (SWMCX) has a higher volatility of 4.28% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.54%. This indicates that SWMCX's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWMCX	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.28%	3.54%	+0.74%
Volatility (6M) Calculated over the trailing 6-month period	10.40%	7.70%	+2.70%
Volatility (1Y) Calculated over the trailing 1-year period	13.85%	10.93%	+2.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.31%	14.36%	+3.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.57%	16.70%	+3.87%

SWMCX vs. SCHD - Expense Ratio Comparison

SWMCX has a 0.04% expense ratio, which is lower than SCHD's 0.06% 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

SWMCX vs. SCHD - Dividend Comparison

SWMCX's dividend yield for the trailing twelve months is around 1.85%, less than SCHD's 3.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.22%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
SWMCX Schwab U.S. Mid-Cap Index Fund	1.85%	2.13%	2.60%	1.49%	1.59%	2.93%	1.45%	2.44%	1.41%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SWMCX and SCHD in my portfolio?

SWMCX and SCHD have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWMCX or SCHD?

SWMCX has higher volatility (4.28%) compared to SCHD (3.54%). In terms of maximum drawdown, SWMCX dropped -40.34% vs SCHD's -33.37%.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.17 vs 1.35), 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.