SWNTX vs. SWAGX
SWNTX (Schwab Tax-Free Bond Fund™) and SWAGX (Schwab U.S. Aggregate Bond Index Fund) are both mutual funds - SWNTX is a Municipal Bonds fund managed by Charles Schwab, while SWAGX is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index. Over the past 5 years, SWNTX returned 0.61%/yr vs -0.17%/yr for SWAGX. A 0.54 correlation means they provide meaningful diversification when combined. SWNTX charges 0.48%/yr vs 0.04%/yr for SWAGX.
Performance
SWNTX vs. SWAGX - Performance Comparison
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Returns By Period
In the year-to-date period, SWNTX achieves a 1.33% return, which is significantly higher than SWAGX's 0.05% return.
SWNTX
- 1D
- -0.09%
- 1M
- 1.39%
- YTD
- 1.33%
- 6M
- 1.72%
- 1Y
- 6.16%
- 3Y*
- 3.30%
- 5Y*
- 0.61%
- 10Y*
- 1.58%
SWAGX
- 1D
- -0.34%
- 1M
- 0.47%
- YTD
- 0.05%
- 6M
- 0.40%
- 1Y
- 4.19%
- 3Y*
- 3.85%
- 5Y*
- -0.17%
- 10Y*
- —
SWNTX vs. SWAGX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SWNTX Schwab Tax-Free Bond Fund™ | 1.33% | 4.20% | 1.57% | 5.09% | -8.57% | 0.37% | 4.45% | 6.55% | 0.88% | 3.56% |
SWAGX Schwab U.S. Aggregate Bond Index Fund | 0.05% | 7.11% | 1.38% | 5.46% | -13.62% | -2.29% | 7.39% | 8.64% | -0.11% | 2.62% |
Correlation
The correlation between SWNTX and SWAGX is 0.59, 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 | 0.59 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.56 |
Correlation (All Time) Calculated using the full available price history since Feb 23, 2017 | 0.54 |
The correlation between SWNTX and SWAGX has been stable across timeframes, ranging from 0.54 to 0.64 - a consistent structural relationship.
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Return for Risk
SWNTX vs. SWAGX — Risk / Return Rank
SWNTX
SWAGX
SWNTX vs. SWAGX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Tax-Free Bond Fund™ (SWNTX) and Schwab U.S. Aggregate Bond Index Fund (SWAGX). 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.
| SWNTX | SWAGX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.51 | ||
| Sortino ratioReturn per unit of downside risk | +2.47 | ||
| Omega ratioGain probability vs. loss probability | 1.67 | 1.19 | +0.48 |
| Calmar ratioReturn relative to maximum drawdown | 2.19 | 1.42 | +0.77 |
| Martin ratioReturn relative to average drawdown | 7.13 | 4.02 | +3.11 |
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Drawdowns
SWNTX vs. SWAGX - Drawdown Comparison
The maximum SWNTX drawdown since its inception was -13.26%, smaller than the maximum SWAGX drawdown of -19.68%. Use the drawdown chart below to compare losses from any high point for SWNTX and SWAGX.
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Drawdown Indicators
| SWNTX | SWAGX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.26% | -19.68% | +6.42% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -3.05% | +0.17% |
Max Drawdown (3Y)Largest decline over 3 years | -4.85% | -6.14% | +1.29% |
Max Drawdown (5Y)Largest decline over 5 years | -13.26% | -18.76% | +5.50% |
Max Drawdown (10Y)Largest decline over 10 years | -13.26% | — | — |
Current DrawdownCurrent decline from peak | -0.79% | -3.71% | +2.92% |
Average DrawdownAverage peak-to-trough decline | -1.89% | -5.67% | +3.78% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 1.07% | -0.19% |
Volatility
SWNTX vs. SWAGX - Volatility Comparison
The current volatility for Schwab Tax-Free Bond Fund™ (SWNTX) is 0.76%, while Schwab U.S. Aggregate Bond Index Fund (SWAGX) has a volatility of 1.09%. This indicates that SWNTX experiences smaller price fluctuations and is considered to be less risky than SWAGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SWNTX | SWAGX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.76% | 1.09% | -0.33% |
Volatility (6M)Calculated over the trailing 6-month period | 1.86% | 2.96% | -1.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.42% | 3.98% | -1.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.49% | 6.09% | -2.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.57% | 5.11% | -1.54% |
SWNTX vs. SWAGX - Expense Ratio Comparison
SWNTX has a 0.48% expense ratio, which is higher than SWAGX's 0.04% expense ratio.
Dividends
SWNTX vs. SWAGX - Dividend Comparison
SWNTX's dividend yield for the trailing twelve months is around 3.46%, less than SWAGX's 4.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SWAGX Schwab U.S. Aggregate Bond Index Fund | 4.15% | 4.02% | 3.88% | 3.22% | 1.93% | 1.56% | 2.47% | 2.87% | 2.80% | 1.98% | 0.00% | 0.00% |
SWNTX Schwab Tax-Free Bond Fund™ | 3.46% | 3.78% | 3.20% | 2.54% | 1.73% | 1.62% | 2.34% | 2.58% | 2.41% | 2.21% | 3.14% | 2.71% |
Frequently Asked Questions
SWNTX and SWAGX have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SWAGX has higher volatility (1.09%) compared to SWNTX (0.76%). In terms of maximum drawdown, SWNTX dropped -13.26% vs SWAGX's -19.68%.
SWNTX currently has the higher Sharpe Ratio (2.60 vs 1.09), 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.
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