ITDD vs. SWYGX

Last updated Aug 2, 2026

ITDD (Ishares Lifepath Target Date 2040 ETF) and SWYGX (Schwab Target 2040 Index Fund) are both Target Retirement Date funds. ITDD is actively managed, while SWYGX is passively managed. Over the past year, ITDD returned 17.97% vs 18.57% for SWYGX. Their 0.98 correlation means they have historically moved very closely together. ITDD charges 0.11%/yr vs 0.08%/yr for SWYGX.

Performance

ITDD vs. SWYGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ishares Lifepath Target Date 2040 ETF (ITDD) and Schwab Target 2040 Index Fund (SWYGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with ITDD having a 8.72% return and SWYGX slightly higher at 9.09%.

ITDD

• 1D: 0.10%
• 1M: -0.42%
• 6M: 6.04%
• YTD: 8.72%
• 1Y: 17.97%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 19.27%

SWYGX

• 1D: 1.43%
• 1M: -0.45%
• 6M: 6.60%
• YTD: 9.09%
• 1Y: 18.57%
• 3Y*: 14.68%
• 5Y*: 8.29%
• 10Y*: —
• ALL TIME*: 10.32%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ITDD Ishares Lifepath Target Date 2040 ETF	$667.07K	$567.21K	$682.84K
SWYGX Schwab Target 2040 Index Fund	$0.00	$0.00	$0.00

ITDD vs. SWYGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ITDD Ishares Lifepath Target Date 2040 ETF	8.72%	17.66%	13.08%	12.87%
SWYGX Schwab Target 2040 Index Fund	9.09%	17.57%	12.83%	12.01%

Correlation

The correlation between ITDD and SWYGX is 0.99 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.99
Correlation (All Time) Calculated using the full available price history since Oct 19, 2023	0.98

The correlation between ITDD and SWYGX has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

Return for Risk

ITDD vs. SWYGX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ITDD

ITDD Risk / Return Rank: 73
ITDD Sharpe Ratio Rank: 74
ITDD Sortino Ratio Rank: 73
ITDD Omega Ratio Rank: 73
ITDD Calmar Ratio Rank: 67
ITDD Martin Ratio Rank: 77

SWYGX

SWYGX Risk / Return Rank: 73
SWYGX Sharpe Ratio Rank: 71
SWYGX Sortino Ratio Rank: 69
SWYGX Omega Ratio Rank: 69
SWYGX Calmar Ratio Rank: 72
SWYGX Martin Ratio Rank: 82

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ITDD vs. SWYGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ishares Lifepath Target Date 2040 ETF (ITDD) and Schwab Target 2040 Index Fund (SWYGX). 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.

	ITDD	SWYGX	Difference
Sharpe ratio: Return per unit of total volatility	1.67	1.62	+0.04
Sortino ratio: Return per unit of downside risk	2.36	2.30	+0.06
Omega ratio: Gain probability vs. loss probability	1.30	1.29	+0.01
Calmar ratio: Return relative to maximum drawdown	2.33	2.30	+0.03
Martin ratio: Return relative to average drawdown	9.79	9.90	-0.12

ITDD vs. SWYGX - Sharpe Ratio Comparison

The current ITDD Sharpe Ratio is 1.67, which is comparable to the SWYGX Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of ITDD and SWYGX, 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

ITDD vs. SWYGX - Drawdown Comparison

The maximum ITDD drawdown since its inception was -12.46%, smaller than the maximum SWYGX drawdown of -27.62%. Use the drawdown chart below to compare losses from any high point for ITDD and SWYGX.

Drawdown Indicators

	ITDD	SWYGX	Difference
Max Drawdown Largest peak-to-trough decline	-12.46%	-27.62%	+15.16%
Max Drawdown (1Y) Largest decline over 1 year	-7.56%	-7.50%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	—	-12.96%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.07%	—
Current Drawdown Current decline from peak	-1.14%	-1.17%	+0.03%
Average Drawdown Average peak-to-trough decline	-1.24%	-4.12%	+2.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	1.74%	+0.05%

Volatility

ITDD vs. SWYGX - Volatility Comparison

Ishares Lifepath Target Date 2040 ETF (ITDD) and Schwab Target 2040 Index Fund (SWYGX) have volatilities of 3.04% and 2.90%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITDD	SWYGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.04%	2.90%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	8.91%	8.79%	+0.12%
Volatility (1Y) Calculated over the trailing 1-year period	10.57%	10.62%	-0.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.49%	13.28%	-1.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.49%	14.00%	-2.51%

ITDD vs. SWYGX - Expense Ratio Comparison

ITDD has a 0.11% expense ratio, which is higher than SWYGX's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ITDD vs. SWYGX - Dividend Comparison

ITDD's dividend yield for the trailing twelve months is around 1.68%, less than SWYGX's 2.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ITDD Ishares Lifepath Target Date 2040 ETF	1.68%	1.82%	1.56%	0.89%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SWYGX Schwab Target 2040 Index Fund	2.04%	2.23%	2.28%	2.06%	2.03%	1.80%	1.72%	1.95%	2.21%	1.44%	1.13%

Frequently Asked Questions

Can I hold both ITDD and SWYGX in my portfolio?

With a correlation of 0.99, ITDD and SWYGX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ITDD or SWYGX?

ITDD has higher volatility (3.04%) compared to SWYGX (2.90%). In terms of maximum drawdown, ITDD dropped -12.46% vs SWYGX's -27.62%.

Which has better risk-adjusted returns?

ITDD currently has the higher Sharpe Ratio (1.67 vs 1.62), 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.