- ISIN
- US8085095334
- CUSIP
- 808509533
- Issuer
- Charles Schwab
- Inception Date
- Jun 30, 2005
- Category
- Target Retirement Date
- Min. Investment
- $0
- Distribution Policy
- Distributing
- Asset Class
- Multi-Asset
- Asset Class Size
- Large-Cap
- Asset Class Style
- Blend
Share Price Chart
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Performance
SWERX Performance Chart
Schwab Target 2040 Fund (SWERX) is up 8.9% since the beginning of the year. SWERX is currently trading at $21 per share. Investors who bought $1,000 worth of SWERX shares 5 years ago would now be looking at an investment worth $1,488.
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Returns By Period
Schwab Target 2040 Fund (SWERX) has returned 8.92% so far this year and 21.96% over the past 12 months. Over the last ten years, SWERX has returned 10.24% per year, falling short of the S&P 500 Index benchmark, which averaged 13.88% annually.
Schwab Target 2040 Fund
- 1D
- 0.94%
- 1M
- 1.18%
- YTD
- 8.92%
- 6M
- 8.71%
- 1Y
- 21.96%
- 3Y*
- 15.49%
- 5Y*
- 8.28%
- 10Y*
- 10.24%
Benchmark (S&P 500 Index)
- 1D
- -0.37%
- 1M
- -0.01%
- YTD
- 9.16%
- 6M
- 8.64%
- 1Y
- 25.22%
- 3Y*
- 19.78%
- 5Y*
- 11.99%
- 10Y*
- 13.88%
SWERX Monthly Returns History
Based on dividend-adjusted daily data since Jul 1, 2005, SWERX's average daily return is +0.04%, while the average monthly return is +0.74%. At this rate, an investment would double in approximately 7.8 years.
Historically, 64% of months were positive and 36% were negative. The best month was Oct 2011 with a return of +10.5%, while the worst month was Oct 2008 at -15.0%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 6 months.
On a daily basis, SWERX closed higher 52% of trading days. The best single day was Dec 29, 2022 with a return of +8.4%, while the worst single day was Mar 16, 2020 at -9.4%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2.59% | 1.83% | -5.58% | 6.99% | 3.27% | -0.05% | 8.92% | ||||||
| 2025 | 2.90% | -0.11% | -3.09% | 0.62% | 4.11% | 3.84% | 0.41% | 2.76% | 2.64% | 1.50% | 0.48% | 0.57% | 17.71% |
| 2024 | 0.12% | 3.53% | 2.66% | -3.66% | 4.09% | 1.35% | 2.16% | 2.22% | 1.54% | -2.19% | 3.63% | -2.99% | 12.74% |
| 2023 | 7.07% | -2.69% | 2.24% | 1.03% | -0.96% | 4.96% | 2.82% | -2.27% | -4.15% | -2.80% | 8.06% | 5.20% | 19.06% |
| 2022 | -4.85% | -2.98% | 1.01% | -7.30% | 0.36% | -7.49% | 6.62% | -4.10% | -8.73% | 5.51% | 6.98% | -3.68% | -18.57% |
| 2021 | -0.33% | 2.29% | 2.08% | 4.02% | 1.18% | 1.27% | 1.01% | 2.04% | -3.75% | 3.95% | -2.05% | 3.22% | 15.65% |
Benchmark Metrics
Schwab Target 2040 Fund has an annualized alpha of 1.05%, beta of 0.78, and R2 of 0.89 versus S&P 500 Index. Calculated based on daily prices since July 01, 2005.
- This fund participated in 87.49% of S&P 500 Index downside but only 84.85% of its upside - more exposed to losses than it benefited from rallies.
- Alpha
- 1.05%
- Beta
- 0.78
- R²
- 0.89
- Upside Capture
- 84.85%
- Downside Capture
- 87.49%
Expense Ratio
SWERX has an expense ratio of 0.00%, meaning no management fees are charged.
Return for Risk
Risk / Return Rank
SWERX ranks 57 for risk / return — on par with similar mutual funds. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.
Return / Risk — by metrics
The table below present risk-adjusted performance metrics for Schwab Target 2040 Fund (SWERX) and compare them to S&P 500 Index.
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.
| SWERX | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.12 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.37 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.69 | 2.78 | -0.09 |
| Martin ratioReturn relative to average drawdown | 11.72 | 12.44 | -0.72 |
Dividends
Dividend History
Schwab Target 2040 Fund provided a 6.60% dividend yield over the last twelve months, with an annual payout of $1.42 per share. The fund has been increasing its distributions for 2 consecutive years.
| Period | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend | $1.42 | $1.42 | $0.90 | $0.64 | $1.21 | $1.35 | $0.60 | $1.25 | $1.22 | $0.70 | $0.99 | $1.59 |
Dividend yield | 6.60% | 7.19% | 5.00% | 3.83% | 8.31% | 6.96% | 3.33% | 7.69% | 8.57% | 4.13% | 6.76% | 10.85% |
Monthly Dividends
The table displays the monthly dividend distributions for Schwab Target 2040 Fund. The dividends shown in the table have been adjusted to account for any splits that may have occurred.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ||||||
| 2025 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $1.42 | $1.42 |
| 2024 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.90 | $0.90 |
| 2023 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.64 | $0.64 |
| 2022 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $1.21 | $1.21 |
| 2021 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $1.35 | $1.35 |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Schwab Target 2040 Fund. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Schwab Target 2040 Fund was 48.24%, occurring on Mar 9, 2009. Recovery took 492 trading sessions.
The current Schwab Target 2040 Fund drawdown is 0.32%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
Financial crisis2007–2009 | -48.24%Mar 2009 | 1y 4mo | 1y 11mo | 3y 3moNov 2007 - Feb 2011 |
Bear market2022 | -30.40%Oct 2022 | 9mo 17d | 1y 9mo | 2y 6moDec 2021 - Jul 2024 |
COVID crash2020 | -29.83%Mar 2020 | 1mo 2d | 4mo 28d | 6moFeb 2020 - Aug 2020 |
2011 correction2011 | -19.67%Oct 2011 | 5mo 4d | 5mo 12d | 10mo 16dMay 2011 - Mar 2012 |
Rate-hike selloffLate 2018 | -16.79%Dec 2018 | 10mo 26d | 10mo 11d | 1y 9moJan 2018 - Oct 2019 |
Drawdown Indicators
| SWERX | Benchmark | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.24% | -56.78% | +8.54% |
Max Drawdown (1Y)Largest decline over 1 year | -8.08% | -9.10% | +1.02% |
Max Drawdown (3Y)Largest decline over 3 years | -13.05% | -18.90% | +5.85% |
Max Drawdown (5Y)Largest decline over 5 years | -30.40% | -25.43% | -4.97% |
Max Drawdown (10Y)Largest decline over 10 years | -30.40% | -33.92% | +3.52% |
Current DrawdownCurrent decline from peak | -0.32% | -1.80% | +1.48% |
Average DrawdownAverage peak-to-trough decline | -7.13% | -10.71% | +3.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.85% | 2.03% | -0.18% |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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