SWOBX vs. SWAGX

Last updated Jun 4, 2026

SWOBX (Schwab Balanced Fund™) and SWAGX (Schwab U.S. Aggregate Bond Index Fund) are both mutual funds - SWOBX is a Diversified Portfolio fund managed by Charles Schwab, while SWAGX is a Total Bond Market fund managed by Charles Schwab. Over the past 5 years, SWOBX returned 6.93%/yr vs 0.01%/yr for SWAGX. At a 0.18 correlation, their price movements are largely independent. SWOBX charges 0.00%/yr vs 0.04%/yr for SWAGX.

Performance

SWOBX vs. SWAGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Balanced Fund™ (SWOBX) and Schwab U.S. Aggregate Bond Index Fund (SWAGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWOBX achieves a 6.26% return, which is significantly higher than SWAGX's 0.38% return.

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%

SWAGX

• 1D: 0.00%
• 1M: 0.47%
• YTD: 0.38%
• 6M: 0.30%
• 1Y: 5.37%
• 3Y*: 3.97%
• 5Y*: 0.01%
• 10Y*: —

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

SWOBX vs. SWAGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWOBX Schwab Balanced Fund™	6.26%	12.76%	12.51%	18.25%	-18.86%	14.76%	14.73%	20.13%	-4.35%	10.79%
SWAGX Schwab U.S. Aggregate Bond Index Fund	0.38%	7.11%	1.38%	5.46%	-13.62%	-2.29%	7.39%	8.64%	-0.11%	2.62%

Correlation

The correlation between SWOBX and SWAGX is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (All Time) Calculated using the full available price history since Feb 24, 2017	0.18

Over the past year, SWOBX and SWAGX have become more correlated (0.41) than their long-term average of 0.18, meaning their price movements have been converging.

Return for Risk

SWOBX vs. SWAGX — Risk / Return Rank

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

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

SWAGX

SWAGX Risk / Return Rank: 21
SWAGX Sharpe Ratio Rank: 21
SWAGX Sortino Ratio Rank: 23
SWAGX Omega Ratio Rank: 19
SWAGX Calmar Ratio Rank: 21
SWAGX Martin Ratio Rank: 19

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.

SWOBX vs. SWAGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Balanced Fund™ (SWOBX) 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.

	SWOBX	SWAGX	Difference
Sharpe ratio Return per unit of total volatility	2.06	1.31	+0.75
Sortino ratio Return per unit of downside risk	2.96	2.00	+0.96
Omega ratio Gain probability vs. loss probability	1.38	1.23	+0.15
Calmar ratio Return relative to maximum drawdown	2.68	1.73	+0.95
Martin ratio Return relative to average drawdown	11.90	5.25	+6.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWOBX vs. SWAGX - Sharpe Ratio Comparison

The current SWOBX Sharpe Ratio is 2.06, which is higher than the SWAGX Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of SWOBX and SWAGX, 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

	SWOBX	SWAGX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.06	1.31	+0.75
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.00	+0.50
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.70	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.32	+0.29

Drawdowns

SWOBX vs. SWAGX - Drawdown Comparison

The maximum SWOBX drawdown since its inception was -35.99%, which is greater than SWAGX's maximum drawdown of -19.68%. Use the drawdown chart below to compare losses from any high point for SWOBX and SWAGX.

Drawdown Indicators

	SWOBX	SWAGX	Difference
Max Drawdown Largest peak-to-trough decline	-35.99%	-19.68%	-16.31%
Max Drawdown (1Y) Largest decline over 1 year	-6.58%	-3.05%	-3.53%
Max Drawdown (3Y) Largest decline over 3 years	-11.72%	-6.14%	-5.58%
Max Drawdown (5Y) Largest decline over 5 years	-28.30%	-18.76%	-9.54%
Max Drawdown (10Y) Largest decline over 10 years	-28.30%	—	—
Current Drawdown Current decline from peak	0.00%	-3.38%	+3.38%
Average Drawdown Average peak-to-trough decline	-6.21%	-5.68%	-0.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.48%	1.00%	+0.48%

Volatility

SWOBX vs. SWAGX - Volatility Comparison

Schwab Balanced Fund™ (SWOBX) has a higher volatility of 2.53% compared to Schwab U.S. Aggregate Bond Index Fund (SWAGX) at 1.35%. This indicates that SWOBX's price experiences larger fluctuations and is considered to be riskier than SWAGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWOBX	SWAGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.53%	1.35%	+1.18%
Volatility (6M) Calculated over the trailing 6-month period	6.74%	2.93%	+3.81%
Volatility (1Y) Calculated over the trailing 1-year period	8.58%	4.02%	+4.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.96%	6.08%	+7.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.88%	5.12%	+7.76%

SWOBX vs. SWAGX - Expense Ratio Comparison

SWOBX has a 0.00% expense ratio, which is lower than SWAGX's 0.04% 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

SWOBX vs. SWAGX - Dividend Comparison

SWOBX's dividend yield for the trailing twelve months is around 5.15%, more than SWAGX's 4.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWAGX Schwab U.S. Aggregate Bond Index Fund	4.13%	4.02%	3.88%	3.22%	1.93%	1.56%	2.47%	2.87%	2.80%	1.98%	0.00%	0.00%
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 SWOBX and SWAGX in my portfolio?

SWOBX and SWAGX have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWOBX or SWAGX?

SWOBX has higher volatility (2.53%) compared to SWAGX (1.35%). In terms of maximum drawdown, SWOBX dropped -35.99% vs SWAGX's -19.68%.

Which has better risk-adjusted returns?

SWOBX currently has the higher Sharpe Ratio (2.06 vs 1.31), 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.