SWMCX vs. VBR

Last updated Jun 24, 2026

SWMCX (Schwab U.S. Mid-Cap Index Fund) and VBR (Vanguard Small-Cap Value ETF) are both funds - SWMCX is a Mid Cap Blend Equities fund managed by Charles Schwab, while VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index. Over the past 5 years, SWMCX returned 8.43%/yr vs 8.59%/yr for VBR. Their correlation of 0.93 suggests significant overlap in exposure. SWMCX charges 0.04%/yr vs 0.05%/yr for VBR.

Performance

SWMCX vs. VBR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Mid-Cap Index Fund (SWMCX) and Vanguard Small-Cap Value ETF (VBR). 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 SWMCX having a 13.97% return and VBR slightly lower at 13.29%.

SWMCX

• 1D: 0.49%
• 1M: 3.34%
• YTD: 13.97%
• 6M: 12.48%
• 1Y: 22.52%
• 3Y*: 17.51%
• 5Y*: 8.43%
• 10Y*: —

VBR

• 1D: -0.11%
• 1M: 2.54%
• YTD: 13.29%
• 6M: 11.72%
• 1Y: 26.18%
• 3Y*: 16.90%
• 5Y*: 8.59%
• 10Y*: 11.01%

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

SWMCX vs. VBR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWMCX Schwab U.S. Mid-Cap Index Fund	13.97%	10.54%	15.28%	17.20%	-17.31%	22.55%	17.03%	30.46%	-9.16%	0.40%
VBR Vanguard Small-Cap Value ETF	13.29%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	-0.16%

Correlation

The correlation between SWMCX and VBR 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	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Dec 19, 2017	0.93

The correlation between SWMCX and VBR has been stable across timeframes, ranging from 0.93 to 0.94 - a consistent structural relationship.

SWMCX vs. VBR - Sectors Allocation Comparison

Sectors	SWMCX	VBR
Industrials	18.4%	17.4%
Technology	17.2%	12.1%
Financial Services	12.5%	17.5%
Consumer Cyclical	11.2%	12.5%
Healthcare	8.7%	8.3%
Energy	7.2%	4.3%
Real Estate	7.0%	10.5%
Utilities	6.1%	4.6%
Basic Materials	4.3%	6.0%
Consumer Defensive	4.1%	4.0%
Communication Services	3.4%	2.8%

Return for Risk

SWMCX vs. VBR — Risk / Return Rank

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

SWMCX

SWMCX Risk / Return Rank: 48
SWMCX Sharpe Ratio Rank: 40
SWMCX Sortino Ratio Rank: 40
SWMCX Omega Ratio Rank: 36
SWMCX Calmar Ratio Rank: 63
SWMCX Martin Ratio Rank: 59

VBR

VBR Risk / Return Rank: 55
VBR Sharpe Ratio Rank: 52
VBR Sortino Ratio Rank: 54
VBR Omega Ratio Rank: 48
VBR Calmar Ratio Rank: 62
VBR Martin Ratio Rank: 61

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. VBR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Mid-Cap Index Fund (SWMCX) and Vanguard Small-Cap Value ETF (VBR). 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	VBR	Difference
Sharpe ratio: Return per unit of total volatility	1.71	1.72	-0.01
Sortino ratio: Return per unit of downside risk	2.44	2.54	-0.10
Omega ratio: Gain probability vs. loss probability	1.30	1.30	0.00
Calmar ratio: Return relative to maximum drawdown	2.90	2.97	-0.07
Martin ratio: Return relative to average drawdown	11.06	10.49	+0.57

SWMCX vs. VBR - Sharpe Ratio Comparison

The current SWMCX Sharpe Ratio is 1.71, which is comparable to the VBR Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of SWMCX and VBR, 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. VBR - Drawdown Comparison

The maximum SWMCX drawdown since its inception was -40.34%, smaller than the maximum VBR drawdown of -61.98%. Use the drawdown chart below to compare losses from any high point for SWMCX and VBR.

Drawdown Indicators

	SWMCX	VBR	Difference
Max Drawdown Largest peak-to-trough decline	-40.34%	-61.98%	+21.64%
Max Drawdown (1Y) Largest decline over 1 year	-8.15%	-8.85%	+0.70%
Max Drawdown (3Y) Largest decline over 3 years	-21.07%	-24.19%	+3.12%
Max Drawdown (5Y) Largest decline over 5 years	-26.09%	-24.19%	-1.90%
Max Drawdown (10Y) Largest decline over 10 years	—	-45.28%	—
Current Drawdown Current decline from peak	-0.24%	-1.14%	+0.90%
Average Drawdown Average peak-to-trough decline	-6.60%	-8.25%	+1.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.13%	2.50%	-0.37%

Volatility

SWMCX vs. VBR - Volatility Comparison

Schwab U.S. Mid-Cap Index Fund (SWMCX) has a higher volatility of 4.42% compared to Vanguard Small-Cap Value ETF (VBR) at 3.98%. This indicates that SWMCX's price experiences larger fluctuations and is considered to be riskier than VBR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWMCX	VBR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.42%	3.98%	+0.44%
Volatility (6M) Calculated over the trailing 6-month period	10.48%	10.66%	-0.18%
Volatility (1Y) Calculated over the trailing 1-year period	13.85%	15.30%	-1.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.31%	19.73%	-1.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.62%	21.71%	-1.09%

SWMCX vs. VBR - Expense Ratio Comparison

SWMCX has a 0.04% expense ratio, which is lower than VBR's 0.05% 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. VBR - Dividend Comparison

SWMCX's dividend yield for the trailing twelve months is around 1.87%, more than VBR's 1.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWMCX Schwab U.S. Mid-Cap Index Fund	1.87%	2.13%	2.60%	1.49%	1.59%	2.93%	1.45%	2.44%	1.41%	0.00%	0.00%	0.00%
VBR Vanguard Small-Cap Value ETF	1.73%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both SWMCX and VBR in my portfolio?

With a correlation of 0.94, SWMCX and VBR 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, SWMCX or VBR?

SWMCX has higher volatility (4.42%) compared to VBR (3.98%). In terms of maximum drawdown, SWMCX dropped -40.34% vs VBR's -61.98%.

Which has better risk-adjusted returns?

VBR currently has the higher Sharpe Ratio (1.72 vs 1.71), 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.