SCHR vs. SWERX

Last updated Jun 4, 2026

SCHR (Schwab Intermediate-Term U.S. Treasury ETF) and SWERX (Schwab Target 2040 Fund) are both funds - SCHR is a Government Bonds fund tracking the Bloomberg US Treasury 3-10 Year Index, while SWERX is a Target Retirement Date fund managed by Charles Schwab. Over the past 10 years, SCHR returned 1.23%/yr vs 10.19%/yr for SWERX. At a correlation of -0.15, they often move in opposite directions. SCHR charges 0.05%/yr vs 0.00%/yr for SWERX.

Performance

SCHR vs. SWERX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Intermediate-Term U.S. Treasury ETF (SCHR) and Schwab Target 2040 Fund (SWERX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHR achieves a -0.43% return, which is significantly lower than SWERX's 9.28% return. Over the past 10 years, SCHR has underperformed SWERX with an annualized return of 1.23%, while SWERX has yielded a comparatively higher 10.19% annualized return.

SCHR

• 1D: -0.16%
• 1M: -0.15%
• YTD: -0.43%
• 6M: -0.59%
• 1Y: 3.55%
• 3Y*: 3.41%
• 5Y*: 0.05%
• 10Y*: 1.23%

SWERX

• 1D: 0.19%
• 1M: 3.86%
• YTD: 9.28%
• 6M: 9.85%
• 1Y: 22.49%
• 3Y*: 16.60%
• 5Y*: 8.20%
• 10Y*: 10.19%

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

SCHR vs. SWERX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHR Schwab Intermediate-Term U.S. Treasury ETF	-0.43%	7.33%	1.42%	4.27%	-10.58%	-2.62%	7.72%	6.18%	1.46%	1.59%
SWERX Schwab Target 2040 Fund	9.28%	17.71%	12.74%	19.06%	-18.57%	15.65%	14.44%	23.01%	-9.11%	20.48%

Correlation

The correlation between SCHR and SWERX is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.24
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (10Y) Calculated over the trailing 10-year period	-0.01
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010	-0.15

The correlation between SCHR and SWERX shifts across timeframes, from -0.15 (all time) to 0.30 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

SCHR vs. SWERX — Risk / Return Rank

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

SCHR

SCHR Risk / Return Rank: 27
SCHR Sharpe Ratio Rank: 28
SCHR Sortino Ratio Rank: 28
SCHR Omega Ratio Rank: 26
SCHR Calmar Ratio Rank: 26
SCHR Martin Ratio Rank: 27

SWERX

SWERX Risk / Return Rank: 59
SWERX Sharpe Ratio Rank: 60
SWERX Sortino Ratio Rank: 58
SWERX Omega Ratio Rank: 57
SWERX Calmar Ratio Rank: 54
SWERX Martin Ratio Rank: 64

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.

SCHR vs. SWERX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Intermediate-Term U.S. Treasury ETF (SCHR) and Schwab Target 2040 Fund (SWERX). 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.

	SCHR	SWERX	Difference
Sharpe ratio: Return per unit of total volatility	1.04	2.28	-1.24
Sortino ratio: Return per unit of downside risk	1.57	3.21	-1.63
Omega ratio: Gain probability vs. loss probability	1.18	1.42	-0.24
Calmar ratio: Return relative to maximum drawdown	1.27	2.82	-1.55
Martin ratio: Return relative to average drawdown	3.82	12.49	-8.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHR vs. SWERX - Sharpe Ratio Comparison

The current SCHR Sharpe Ratio is 1.04, which is lower than the SWERX Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of SCHR and SWERX, 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

	SCHR	SWERX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.04	2.28	-1.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.01	0.55	-0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	0.69	-0.41
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.53	-0.09

Drawdowns

SCHR vs. SWERX - Drawdown Comparison

The maximum SCHR drawdown since its inception was -16.11%, smaller than the maximum SWERX drawdown of -48.24%. Use the drawdown chart below to compare losses from any high point for SCHR and SWERX.

Drawdown Indicators

	SCHR	SWERX	Difference
Max Drawdown Largest peak-to-trough decline	-16.11%	-48.24%	+32.13%
Max Drawdown (1Y) Largest decline over 1 year	-2.79%	-8.08%	+5.29%
Max Drawdown (3Y) Largest decline over 3 years	-4.35%	-13.05%	+8.70%
Max Drawdown (5Y) Largest decline over 5 years	-15.07%	-30.40%	+15.33%
Max Drawdown (10Y) Largest decline over 10 years	-16.11%	-30.40%	+14.29%
Current Drawdown Current decline from peak	-2.37%	0.00%	-2.37%
Average Drawdown Average peak-to-trough decline	-3.64%	-7.15%	+3.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	1.82%	-0.89%

Volatility

SCHR vs. SWERX - Volatility Comparison

The current volatility for Schwab Intermediate-Term U.S. Treasury ETF (SCHR) is 1.08%, while Schwab Target 2040 Fund (SWERX) has a volatility of 2.93%. This indicates that SCHR experiences smaller price fluctuations and is considered to be less risky than SWERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHR	SWERX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.08%	2.93%	-1.85%
Volatility (6M) Calculated over the trailing 6-month period	2.35%	7.92%	-5.57%
Volatility (1Y) Calculated over the trailing 1-year period	3.43%	10.00%	-6.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.38%	14.99%	-9.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.47%	14.84%	-10.37%

SCHR vs. SWERX - Expense Ratio Comparison

SCHR has a 0.05% expense ratio, which is higher than SWERX's 0.00% 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

SCHR vs. SWERX - Dividend Comparison

SCHR's dividend yield for the trailing twelve months is around 3.92%, less than SWERX's 6.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHR Schwab Intermediate-Term U.S. Treasury ETF	3.92%	3.85%	3.77%	3.16%	2.02%	1.00%	1.62%	2.31%	2.11%	1.65%	1.45%	1.56%
SWERX Schwab Target 2040 Fund	6.58%	7.19%	5.00%	3.83%	8.31%	6.96%	3.33%	7.69%	8.57%	4.13%	6.76%	10.85%

Frequently Asked Questions

Can I hold both SCHR and SWERX in my portfolio?

SCHR and SWERX have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHR or SWERX?

SWERX has higher volatility (2.93%) compared to SCHR (1.08%). In terms of maximum drawdown, SCHR dropped -16.11% vs SWERX's -48.24%.

Which has better risk-adjusted returns?

SWERX currently has the higher Sharpe Ratio (2.28 vs 1.04), 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.