SWSSX vs. VBR

Last updated Jun 23, 2026

SWSSX (Schwab Small-Cap Index Fund-Select Shares) and VBR (Vanguard Small-Cap Value ETF) are both funds - SWSSX is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index. Both are passively managed. Over the past 10 years, SWSSX returned 11.44%/yr vs 11.02%/yr for VBR. With a 0.96 correlation, they move nearly in lockstep. SWSSX charges 0.04%/yr vs 0.05%/yr for VBR.

Performance

SWSSX vs. VBR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Small-Cap Index Fund-Select Shares (SWSSX) and Vanguard Small-Cap Value ETF (VBR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWSSX achieves a 20.72% return, which is significantly higher than VBR's 13.42% return. Both investments have delivered pretty close results over the past 10 years, with SWSSX having a 11.44% annualized return and VBR not far behind at 11.02%.

SWSSX

• 1D: 2.10%
• 1M: 3.96%
• YTD: 20.72%
• 6M: 17.16%
• 1Y: 43.08%
• 3Y*: 18.36%
• 5Y*: 7.40%
• 10Y*: 11.44%

VBR

• 1D: 0.18%
• 1M: 2.65%
• YTD: 13.42%
• 6M: 11.41%
• 1Y: 27.72%
• 3Y*: 16.95%
• 5Y*: 8.85%
• 10Y*: 11.02%

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

SWSSX vs. VBR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWSSX Schwab Small-Cap Index Fund-Select Shares	20.72%	12.88%	11.57%	17.07%	-20.43%	14.77%	20.12%	25.63%	-11.19%	14.76%
VBR Vanguard Small-Cap Value ETF	13.42%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%

Correlation

The correlation between SWSSX and VBR is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.96

The correlation between SWSSX and VBR has been stable across timeframes, ranging from 0.89 to 0.96 - a consistent structural relationship.

SWSSX vs. VBR - Sectors Allocation Comparison

Sectors	SWSSX	VBR
Technology	19.1%	12.1%
Industrials	17.9%	17.4%
Healthcare	16.3%	8.3%
Financial Services	15.5%	17.5%
Consumer Cyclical	7.9%	12.5%
Real Estate	5.9%	10.5%
Energy	5.3%	4.3%
Basic Materials	4.7%	6.0%
Utilities	2.8%	4.6%
Communication Services	2.5%	2.8%
Consumer Defensive	2.2%	4.0%

Return for Risk

SWSSX vs. VBR — Risk / Return Rank

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

SWSSX

SWSSX Risk / Return Rank: 69
SWSSX Sharpe Ratio Rank: 66
SWSSX Sortino Ratio Rank: 61
SWSSX Omega Ratio Rank: 50
SWSSX Calmar Ratio Rank: 86
SWSSX Martin Ratio Rank: 80

VBR

VBR Risk / Return Rank: 59
VBR Sharpe Ratio Rank: 56
VBR Sortino Ratio Rank: 58
VBR Omega Ratio Rank: 52
VBR Calmar Ratio Rank: 65
VBR Martin Ratio Rank: 63

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.

SWSSX vs. VBR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Small-Cap Index Fund-Select Shares (SWSSX) 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.

	SWSSX	VBR	Difference
Sharpe ratio: Return per unit of total volatility	2.18	1.82	+0.36
Sortino ratio: Return per unit of downside risk	2.99	2.67	+0.32
Omega ratio: Gain probability vs. loss probability	1.36	1.31	+0.04
Calmar ratio: Return relative to maximum drawdown	3.91	3.14	+0.77
Martin ratio: Return relative to average drawdown	13.84	11.11	+2.73

SWSSX vs. VBR - Sharpe Ratio Comparison

The current SWSSX Sharpe Ratio is 2.18, which is comparable to the VBR Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of SWSSX 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

SWSSX vs. VBR - Drawdown Comparison

The maximum SWSSX drawdown since its inception was -60.34%, roughly equal to the maximum VBR drawdown of -61.98%. Use the drawdown chart below to compare losses from any high point for SWSSX and VBR.

Drawdown Indicators

	SWSSX	VBR	Difference
Max Drawdown Largest peak-to-trough decline	-60.34%	-61.98%	+1.64%
Max Drawdown (1Y) Largest decline over 1 year	-11.00%	-8.85%	-2.15%
Max Drawdown (3Y) Largest decline over 3 years	-27.50%	-24.19%	-3.31%
Max Drawdown (5Y) Largest decline over 5 years	-31.93%	-24.19%	-7.74%
Max Drawdown (10Y) Largest decline over 10 years	-41.81%	-45.28%	+3.47%
Current Drawdown Current decline from peak	0.00%	-1.03%	+1.03%
Average Drawdown Average peak-to-trough decline	-10.71%	-8.25%	-2.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	2.50%	+0.60%

Volatility

SWSSX vs. VBR - Volatility Comparison

Schwab Small-Cap Index Fund-Select Shares (SWSSX) has a higher volatility of 6.76% compared to Vanguard Small-Cap Value ETF (VBR) at 3.97%. This indicates that SWSSX'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

	SWSSX	VBR	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.76%	3.97%	+2.79%
Volatility (6M) Calculated over the trailing 6-month period	14.36%	10.66%	+3.70%
Volatility (1Y) Calculated over the trailing 1-year period	19.71%	15.33%	+4.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.68%	19.73%	+2.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.14%	21.75%	+2.39%

SWSSX vs. VBR - Expense Ratio Comparison

SWSSX 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

SWSSX vs. VBR - Dividend Comparison

SWSSX's dividend yield for the trailing twelve months is around 1.07%, less than VBR's 1.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWSSX Schwab Small-Cap Index Fund-Select Shares	1.07%	1.29%	1.66%	1.49%	1.32%	8.88%	2.55%	6.12%	10.45%	5.22%	4.10%	6.92%
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 SWSSX and VBR in my portfolio?

SWSSX and VBR have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWSSX or VBR?

SWSSX has higher volatility (6.76%) compared to VBR (3.97%). In terms of maximum drawdown, SWSSX dropped -60.34% vs VBR's -61.98%.

Which has better risk-adjusted returns?

SWSSX currently has the higher Sharpe Ratio (2.18 vs 1.82), 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.