NEWFX vs. SWTSX
Compare and contrast key facts about American Funds New World Fund (NEWFX) and Schwab Total Stock Market Index Fund (SWTSX).
NEWFX is managed by American Funds. It was launched on Jun 16, 1999. SWTSX is managed by Charles Schwab. It was launched on Jun 1, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: NEWFX or SWTSX.
Key characteristics
| NEWFX | SWTSX | |
|---|---|---|
| YTD Return | 9.32% | 17.97% |
| 1Y Return | 15.35% | 27.65% |
| 3Y Return (Ann) | -1.62% | 8.32% |
| 5Y Return (Ann) | 6.87% | 14.41% |
| 10Y Return (Ann) | 5.84% | 12.25% |
| Sharpe Ratio | 1.31 | 2.10 |
| Daily Std Dev | 11.42% | 13.18% |
| Max Drawdown | -56.09% | -54.60% |
| Current Drawdown | -7.20% | -0.44% |
Correlation
The correlation between NEWFX and SWTSX is 0.76, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
NEWFX vs. SWTSX - Performance Comparison
In the year-to-date period, NEWFX achieves a 9.32% return, which is significantly lower than SWTSX's 17.97% return. Over the past 10 years, NEWFX has underperformed SWTSX with an annualized return of 5.84%, while SWTSX has yielded a comparatively higher 12.25% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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NEWFX vs. SWTSX - Expense Ratio Comparison
NEWFX has a 0.96% expense ratio, which is higher than SWTSX's 0.03% expense ratio.
Risk-Adjusted Performance
NEWFX vs. SWTSX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund (NEWFX) and Schwab Total Stock Market Index Fund (SWTSX). 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.
Dividends
NEWFX vs. SWTSX - Dividend Comparison
NEWFX's dividend yield for the trailing twelve months is around 2.25%, more than SWTSX's 1.19% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NEWFX American Funds New World Fund | 2.25% | 2.46% | 0.89% | 6.89% | 0.10% | 3.65% | 2.26% | 1.90% | 0.92% | 0.60% | 6.75% | 2.97% |
SWTSX Schwab Total Stock Market Index Fund | 1.19% | 1.41% | 1.62% | 1.46% | 1.63% | 1.92% | 2.58% | 1.83% | 2.32% | 2.79% | 2.23% | 1.95% |
Drawdowns
NEWFX vs. SWTSX - Drawdown Comparison
The maximum NEWFX drawdown since its inception was -56.09%, roughly equal to the maximum SWTSX drawdown of -54.60%. Use the drawdown chart below to compare losses from any high point for NEWFX and SWTSX. For additional features, visit the drawdowns tool.
Volatility
NEWFX vs. SWTSX - Volatility Comparison
The current volatility for American Funds New World Fund (NEWFX) is 3.73%, while Schwab Total Stock Market Index Fund (SWTSX) has a volatility of 4.17%. This indicates that NEWFX experiences smaller price fluctuations and is considered to be less risky than SWTSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.