SWOBX vs. SWLRX

Last updated Jun 4, 2026

SWOBX (Schwab Balanced Fund™) and SWLRX (Schwab Monthly Income Fund - Maximum Payout) are both Diversified Portfolio funds from Charles Schwab. Over the past 10 years, SWOBX returned 8.92%/yr vs 3.48%/yr for SWLRX. A 0.56 correlation means they provide meaningful diversification when combined. Both charge a 0.00% expense ratio.

Performance

SWOBX vs. SWLRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Balanced Fund™ (SWOBX) and Schwab Monthly Income Fund - Maximum Payout (SWLRX). 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 SWLRX's 4.27% return. Over the past 10 years, SWOBX has outperformed SWLRX with an annualized return of 8.92%, while SWLRX has yielded a comparatively lower 3.48% annualized 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%

SWLRX

• 1D: 0.10%
• 1M: 0.79%
• YTD: 4.27%
• 6M: 4.44%
• 1Y: 10.74%
• 3Y*: 8.00%
• 5Y*: 2.70%
• 10Y*: 3.48%

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

SWOBX vs. SWLRX - 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%	15.52%
SWLRX Schwab Monthly Income Fund - Maximum Payout	4.27%	9.85%	3.75%	8.04%	-12.49%	2.33%	6.93%	11.18%	-2.31%	5.64%

Correlation

The correlation between SWOBX and SWLRX 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	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.56

The correlation between SWOBX and SWLRX shifts across timeframes, from 0.56 (all time) to 0.68 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

SWOBX vs. SWLRX — 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

SWLRX

SWLRX Risk / Return Rank: 67
SWLRX Sharpe Ratio Rank: 72
SWLRX Sortino Ratio Rank: 74
SWLRX Omega Ratio Rank: 70
SWLRX Calmar Ratio Rank: 64
SWLRX Martin Ratio Rank: 56

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. SWLRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Balanced Fund™ (SWOBX) and Schwab Monthly Income Fund - Maximum Payout (SWLRX). 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	SWLRX	Difference
Sharpe ratio Return per unit of total volatility	2.06	2.46	-0.40
Sortino ratio Return per unit of downside risk	2.96	3.59	-0.64
Omega ratio Gain probability vs. loss probability	1.38	1.47	-0.09
Calmar ratio Return relative to maximum drawdown	2.68	3.09	-0.41
Martin ratio Return relative to average drawdown	11.90	11.33	+0.57
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. SWLRX - Sharpe Ratio Comparison

The current SWOBX Sharpe Ratio is 2.06, which is comparable to the SWLRX Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of SWOBX and SWLRX, 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	SWLRX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.06	2.46	-0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.44	+0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.70	0.68	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.82	-0.22

Drawdowns

SWOBX vs. SWLRX - Drawdown Comparison

The maximum SWOBX drawdown since its inception was -35.99%, which is greater than SWLRX's maximum drawdown of -18.60%. Use the drawdown chart below to compare losses from any high point for SWOBX and SWLRX.

Drawdown Indicators

	SWOBX	SWLRX	Difference
Max Drawdown Largest peak-to-trough decline	-35.99%	-18.60%	-17.39%
Max Drawdown (1Y) Largest decline over 1 year	-6.58%	-3.49%	-3.09%
Max Drawdown (3Y) Largest decline over 3 years	-11.72%	-6.47%	-5.25%
Max Drawdown (5Y) Largest decline over 5 years	-28.30%	-18.60%	-9.70%
Max Drawdown (10Y) Largest decline over 10 years	-28.30%	-18.60%	-9.70%
Current Drawdown Current decline from peak	0.00%	-0.74%	+0.74%
Average Drawdown Average peak-to-trough decline	-6.21%	-2.36%	-3.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.48%	0.95%	+0.53%

Volatility

SWOBX vs. SWLRX - Volatility Comparison

Schwab Balanced Fund™ (SWOBX) has a higher volatility of 2.53% compared to Schwab Monthly Income Fund - Maximum Payout (SWLRX) at 1.34%. This indicates that SWOBX's price experiences larger fluctuations and is considered to be riskier than SWLRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWOBX	SWLRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.53%	1.34%	+1.19%
Volatility (6M) Calculated over the trailing 6-month period	6.74%	3.33%	+3.41%
Volatility (1Y) Calculated over the trailing 1-year period	8.58%	4.38%	+4.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.96%	6.20%	+7.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.88%	5.13%	+7.75%

SWOBX vs. SWLRX - Expense Ratio Comparison

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

SWOBX vs. SWLRX - Dividend Comparison

SWOBX's dividend yield for the trailing twelve months is around 5.15%, more than SWLRX's 4.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWLRX Schwab Monthly Income Fund - Maximum Payout	4.58%	4.63%	4.94%	4.10%	4.63%	3.07%	2.19%	3.22%	3.30%	2.47%	4.00%	4.31%
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 SWLRX in my portfolio?

SWOBX and SWLRX 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.

Which is riskier, SWOBX or SWLRX?

SWOBX has higher volatility (2.53%) compared to SWLRX (1.34%). In terms of maximum drawdown, SWOBX dropped -35.99% vs SWLRX's -18.60%.

Which has better risk-adjusted returns?

SWLRX currently has the higher Sharpe Ratio (2.46 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.