WSHFX vs. SCHO

Last updated Jun 13, 2026

WSHFX (American Funds Washington Mutual Investors Fund Class F-1) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both funds - WSHFX is a Large Cap Blend Equities fund managed by American Funds, while SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Over the past 10 years, WSHFX returned 12.75%/yr vs 1.71%/yr for SCHO. At a correlation of -0.13, they often move in opposite directions. WSHFX charges 0.64%/yr vs 0.03%/yr for SCHO.

Performance

WSHFX vs. SCHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Washington Mutual Investors Fund Class F-1 (WSHFX) and Schwab Short-Term U.S. Treasury ETF (SCHO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, WSHFX achieves a 5.28% return, which is significantly higher than SCHO's 0.54% return. Over the past 10 years, WSHFX has outperformed SCHO with an annualized return of 12.75%, while SCHO has yielded a comparatively lower 1.71% annualized return.

WSHFX

• 1D: 1.48%
• 1M: 0.10%
• YTD: 5.28%
• 6M: 5.29%
• 1Y: 16.60%
• 3Y*: 17.49%
• 5Y*: 11.70%
• 10Y*: 12.75%

SCHO

• 1D: 0.00%
• 1M: 0.18%
• YTD: 0.54%
• 6M: 0.82%
• 1Y: 3.43%
• 3Y*: 4.25%
• 5Y*: 1.82%
• 10Y*: 1.71%

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

WSHFX vs. SCHO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
WSHFX American Funds Washington Mutual Investors Fund Class F-1	5.28%	17.13%	18.94%	17.15%	-8.50%	28.36%	7.62%	24.82%	-6.27%	19.91%
SCHO Schwab Short-Term U.S. Treasury ETF	0.54%	5.49%	3.65%	4.31%	-3.87%	-0.64%	3.11%	3.47%	1.37%	0.33%

Correlation

The correlation between WSHFX and SCHO is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.09
Correlation (5Y) Calculated over the trailing 5-year period	0.07
Correlation (10Y) Calculated over the trailing 10-year period	-0.07
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010	-0.13

The correlation between WSHFX and SCHO shifts across timeframes, from -0.13 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

WSHFX vs. SCHO — Risk / Return Rank

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

WSHFX

WSHFX Risk / Return Rank: 43
WSHFX Sharpe Ratio Rank: 43
WSHFX Sortino Ratio Rank: 43
WSHFX Omega Ratio Rank: 42
WSHFX Calmar Ratio Rank: 37
WSHFX Martin Ratio Rank: 48

SCHO

SCHO Risk / Return Rank: 88
SCHO Sharpe Ratio Rank: 87
SCHO Sortino Ratio Rank: 92
SCHO Omega Ratio Rank: 89
SCHO Calmar Ratio Rank: 83
SCHO Martin Ratio Rank: 88

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.

WSHFX vs. SCHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Washington Mutual Investors Fund Class F-1 (WSHFX) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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.

	WSHFX	SCHO	Difference
Sharpe ratio: Return per unit of total volatility	1.52	2.46	-0.94
Sortino ratio: Return per unit of downside risk	2.18	4.02	-1.83
Omega ratio: Gain probability vs. loss probability	1.27	1.50	-0.22
Calmar ratio: Return relative to maximum drawdown	1.91	3.91	-2.00
Martin ratio: Return relative to average drawdown	8.21	16.48	-8.27

WSHFX vs. SCHO - Sharpe Ratio Comparison

The current WSHFX Sharpe Ratio is 1.52, which is lower than the SCHO Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of WSHFX and SCHO, 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

WSHFX vs. SCHO - Drawdown Comparison

The maximum WSHFX drawdown since its inception was -53.94%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for WSHFX and SCHO.

Drawdown Indicators

	WSHFX	SCHO	Difference
Max Drawdown Largest peak-to-trough decline	-53.94%	-5.69%	-48.25%
Max Drawdown (1Y) Largest decline over 1 year	-8.38%	-0.86%	-7.52%
Max Drawdown (3Y) Largest decline over 3 years	-14.65%	-0.98%	-13.67%
Max Drawdown (5Y) Largest decline over 5 years	-18.69%	-5.69%	-13.00%
Max Drawdown (10Y) Largest decline over 10 years	-34.67%	-5.69%	-28.98%
Current Drawdown Current decline from peak	-0.54%	-0.14%	-0.40%
Average Drawdown Average peak-to-trough decline	-7.33%	-0.61%	-6.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.95%	0.20%	+1.75%

Volatility

WSHFX vs. SCHO - Volatility Comparison

American Funds Washington Mutual Investors Fund Class F-1 (WSHFX) has a higher volatility of 3.05% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.43%. This indicates that WSHFX's price experiences larger fluctuations and is considered to be riskier than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	WSHFX	SCHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	0.43%	+2.62%
Volatility (6M) Calculated over the trailing 6-month period	8.13%	0.93%	+7.20%
Volatility (1Y) Calculated over the trailing 1-year period	10.55%	1.37%	+9.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.14%	1.98%	+12.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.34%	1.56%	+14.78%

WSHFX vs. SCHO - Expense Ratio Comparison

WSHFX has a 0.64% expense ratio, which is higher than SCHO's 0.03% expense ratio.

Dividends

WSHFX vs. SCHO - Dividend Comparison

WSHFX's dividend yield for the trailing twelve months is around 5.32%, more than SCHO's 3.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHO Schwab Short-Term U.S. Treasury ETF	3.90%	4.06%	4.29%	3.76%	1.34%	0.41%	1.27%	2.27%	1.60%	1.12%	0.82%	0.68%
WSHFX American Funds Washington Mutual Investors Fund Class F-1	5.32%	10.08%	10.05%	6.11%	6.28%	6.01%	3.02%	6.17%	4.28%	7.19%	6.32%	6.18%

Frequently Asked Questions

Can I hold both WSHFX and SCHO in my portfolio?

WSHFX and SCHO have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WSHFX or SCHO?

WSHFX has higher volatility (3.05%) compared to SCHO (0.43%). In terms of maximum drawdown, WSHFX dropped -53.94% vs SCHO's -5.69%.

Which has better risk-adjusted returns?

SCHO currently has the higher Sharpe Ratio (2.46 vs 1.52), 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.