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NEWFX vs. SWTSX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

NEWFX vs. SWTSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New World Fund (NEWFX) and Schwab Total Stock Market Index Fund (SWTSX). The values are adjusted to include any dividend payments, if applicable.

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NEWFX vs. SWTSX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
NEWFX
American Funds New World Fund
-4.07%28.16%6.45%15.75%-22.08%4.69%24.79%27.51%-12.32%32.56%
SWTSX
Schwab Total Stock Market Index Fund
-6.77%17.04%23.84%26.05%-19.54%25.65%20.71%30.90%-5.35%21.08%

Returns By Period

In the year-to-date period, NEWFX achieves a -4.07% return, which is significantly higher than SWTSX's -6.77% return. Over the past 10 years, NEWFX has underperformed SWTSX with an annualized return of 9.04%, while SWTSX has yielded a comparatively higher 13.21% annualized return.


NEWFX

1D
-0.63%
1M
-11.97%
YTD
-4.07%
6M
-0.04%
1Y
21.01%
3Y*
12.44%
5Y*
4.18%
10Y*
9.04%

SWTSX

1D
-0.46%
1M
-7.67%
YTD
-6.77%
6M
-4.59%
1Y
14.70%
3Y*
16.68%
5Y*
10.10%
10Y*
13.21%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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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.


Return for Risk

NEWFX vs. SWTSX — Risk / Return Rank

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

NEWFX
NEWFX Risk / Return Rank: 6969
Overall Rank
NEWFX Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
NEWFX Sortino Ratio Rank: 7575
Sortino Ratio Rank
NEWFX Omega Ratio Rank: 7171
Omega Ratio Rank
NEWFX Calmar Ratio Rank: 6161
Calmar Ratio Rank
NEWFX Martin Ratio Rank: 6363
Martin Ratio Rank

SWTSX
SWTSX Risk / Return Rank: 4545
Overall Rank
SWTSX Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
SWTSX Sortino Ratio Rank: 4444
Sortino Ratio Rank
SWTSX Omega Ratio Rank: 4848
Omega Ratio Rank
SWTSX Calmar Ratio Rank: 4141
Calmar Ratio Rank
SWTSX Martin Ratio Rank: 5252
Martin Ratio Rank
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.

NEWFX vs. SWTSX - Risk-Adjusted Trends 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.


NEWFXSWTSXDifference

Sharpe ratio

Return per unit of total volatility

1.32

0.83

+0.49

Sortino ratio

Return per unit of downside risk

1.84

1.28

+0.56

Omega ratio

Gain probability vs. loss probability

1.26

1.19

+0.07

Calmar ratio

Return relative to maximum drawdown

1.40

1.04

+0.36

Martin ratio

Return relative to average drawdown

5.98

5.04

+0.93

NEWFX vs. SWTSX - Sharpe Ratio Comparison

The current NEWFX Sharpe Ratio is 1.32, which is higher than the SWTSX Sharpe Ratio of 0.83. The chart below compares the historical Sharpe Ratios of NEWFX and SWTSX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


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Sharpe Ratios by Period


NEWFXSWTSXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.32

0.83

+0.49

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.28

0.58

-0.31

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.57

0.71

-0.15

Sharpe Ratio (All Time)

Calculated using the full available price history

0.48

0.40

+0.08

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.


Dividends

NEWFX vs. SWTSX - Dividend Comparison

NEWFX's dividend yield for the trailing twelve months is around 5.95%, more than SWTSX's 1.18% yield.


TTM20252024202320222021202020192018201720162015
NEWFX
American Funds New World Fund
5.95%5.71%3.66%2.46%0.89%6.89%0.10%3.65%2.26%1.90%0.92%0.60%
SWTSX
Schwab Total Stock Market Index Fund
1.18%1.10%1.24%1.41%1.62%1.46%1.63%1.92%2.58%1.83%2.32%2.79%

Drawdowns

NEWFX vs. SWTSX - Drawdown Comparison

The maximum NEWFX drawdown since its inception was -56.71%, 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.


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Drawdown Indicators


NEWFXSWTSXDifference

Max Drawdown

Largest peak-to-trough decline

-56.71%

-54.60%

-2.11%

Max Drawdown (1Y)

Largest decline over 1 year

-13.03%

-12.42%

-0.61%

Max Drawdown (5Y)

Largest decline over 5 years

-33.68%

-25.40%

-8.28%

Max Drawdown (10Y)

Largest decline over 10 years

-33.68%

-35.01%

+1.33%

Current Drawdown

Current decline from peak

-13.03%

-8.88%

-4.15%

Average Drawdown

Average peak-to-trough decline

-11.80%

-10.63%

-1.17%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.06%

2.56%

+0.50%

Volatility

NEWFX vs. SWTSX - Volatility Comparison

American Funds New World Fund (NEWFX) has a higher volatility of 6.38% compared to Schwab Total Stock Market Index Fund (SWTSX) at 4.45%. This indicates that NEWFX's price experiences larger fluctuations and is considered to be riskier than SWTSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


NEWFXSWTSXDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.38%

4.45%

+1.93%

Volatility (6M)

Calculated over the trailing 6-month period

10.73%

9.42%

+1.31%

Volatility (1Y)

Calculated over the trailing 1-year period

15.46%

18.52%

-3.06%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.12%

17.41%

-2.29%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.96%

18.57%

-2.61%