PBAMX vs. SWYGX

Last updated Jun 4, 2026

PBAMX (Putnam Retirement Advantage 2040 Fund) and SWYGX (Schwab Target 2040 Index Fund) are both Target Retirement Date funds. Over the past 5 years, PBAMX returned 9.87%/yr vs 9.03%/yr for SWYGX. With a 0.97 correlation, they move nearly in lockstep. PBAMX charges 0.45%/yr vs 0.04%/yr for SWYGX.

Performance

PBAMX vs. SWYGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Putnam Retirement Advantage 2040 Fund (PBAMX) and Schwab Target 2040 Index Fund (SWYGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PBAMX achieves a 8.54% return, which is significantly lower than SWYGX's 10.38% return.

PBAMX

• 1D: 0.33%
• 1M: 3.88%
• YTD: 8.54%
• 6M: 9.31%
• 1Y: 21.60%
• 3Y*: 18.23%
• 5Y*: 9.87%
• 10Y*: —

SWYGX

• 1D: 0.27%
• 1M: 4.37%
• YTD: 10.38%
• 6M: 10.79%
• 1Y: 23.69%
• 3Y*: 17.18%
• 5Y*: 9.03%
• 10Y*: —

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

PBAMX vs. SWYGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PBAMX Putnam Retirement Advantage 2040 Fund	8.54%	16.68%	13.83%	24.49%	-15.93%	16.47%	13.78%
SWYGX Schwab Target 2040 Index Fund	10.38%	17.57%	12.83%	19.45%	-16.94%	15.68%	13.41%

Correlation

The correlation between PBAMX and SWYGX is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jan 3, 2020	0.97

The correlation between PBAMX and SWYGX has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

PBAMX vs. SWYGX — Risk / Return Rank

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

PBAMX

PBAMX Risk / Return Rank: 74
PBAMX Sharpe Ratio Rank: 73
PBAMX Sortino Ratio Rank: 72
PBAMX Omega Ratio Rank: 68
PBAMX Calmar Ratio Rank: 75
PBAMX Martin Ratio Rank: 82

SWYGX

SWYGX Risk / Return Rank: 70
SWYGX Sharpe Ratio Rank: 72
SWYGX Sortino Ratio Rank: 69
SWYGX Omega Ratio Rank: 65
SWYGX Calmar Ratio Rank: 69
SWYGX Martin Ratio Rank: 76

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.

PBAMX vs. SWYGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Putnam Retirement Advantage 2040 Fund (PBAMX) 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.

	PBAMX	SWYGX	Difference
Sharpe ratio: Return per unit of total volatility	2.49	2.46	+0.03
Sortino ratio: Return per unit of downside risk	3.52	3.45	+0.07
Omega ratio: Gain probability vs. loss probability	1.46	1.45	+0.01
Calmar ratio: Return relative to maximum drawdown	3.43	3.21	+0.22
Martin ratio: Return relative to average drawdown	15.50	14.38	+1.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PBAMX vs. SWYGX - Sharpe Ratio Comparison

The current PBAMX Sharpe Ratio is 2.49, which is comparable to the SWYGX Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of PBAMX 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.

Sharpe Ratios by Period

	PBAMX	SWYGX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	2.46	+0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.69	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.78	0.76	+0.02

Drawdowns

PBAMX vs. SWYGX - Drawdown Comparison

The maximum PBAMX drawdown since its inception was -27.57%, roughly equal to the maximum SWYGX drawdown of -27.62%. Use the drawdown chart below to compare losses from any high point for PBAMX and SWYGX.

Drawdown Indicators

	PBAMX	SWYGX	Difference
Max Drawdown Largest peak-to-trough decline	-27.57%	-27.62%	+0.05%
Max Drawdown (1Y) Largest decline over 1 year	-6.39%	-7.50%	+1.11%
Max Drawdown (3Y) Largest decline over 3 years	-12.67%	-12.96%	+0.29%
Max Drawdown (5Y) Largest decline over 5 years	-21.81%	-24.07%	+2.26%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.94%	-4.17%	-0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.41%	1.67%	-0.26%

Volatility

PBAMX vs. SWYGX - Volatility Comparison

The current volatility for Putnam Retirement Advantage 2040 Fund (PBAMX) is 2.57%, while Schwab Target 2040 Index Fund (SWYGX) has a volatility of 3.05%. This indicates that PBAMX experiences smaller price fluctuations and is considered to be less risky than SWYGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PBAMX	SWYGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.57%	3.05%	-0.48%
Volatility (6M) Calculated over the trailing 6-month period	6.91%	7.80%	-0.89%
Volatility (1Y) Calculated over the trailing 1-year period	8.80%	9.80%	-1.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.27%	13.18%	-0.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.62%	14.02%	+0.60%

PBAMX vs. SWYGX - Expense Ratio Comparison

PBAMX has a 0.45% expense ratio, which is higher than SWYGX's 0.04% expense ratio.

Dividends

PBAMX vs. SWYGX - Dividend Comparison

PBAMX's dividend yield for the trailing twelve months is around 10.61%, more than SWYGX's 2.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
PBAMX Putnam Retirement Advantage 2040 Fund	10.61%	11.51%	7.46%	3.34%	12.96%	14.65%	1.74%	0.00%	0.00%	0.00%	0.00%
SWYGX Schwab Target 2040 Index Fund	2.02%	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 PBAMX and SWYGX in my portfolio?

With a correlation of 0.98, PBAMX 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, PBAMX or SWYGX?

SWYGX has higher volatility (3.05%) compared to PBAMX (2.57%). In terms of maximum drawdown, PBAMX dropped -27.57% vs SWYGX's -27.62%.

Which has better risk-adjusted returns?

PBAMX currently has the higher Sharpe Ratio (2.49 vs 2.46), 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.