SCHZ vs. SWYFX

Last updated Jun 16, 2026

SCHZ (Schwab U.S. Aggregate Bond ETF) and SWYFX (Schwab Target 2035 Index Fund) are both funds - SCHZ is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index, while SWYFX is a Target Retirement Date fund managed by Charles Schwab. Over the past 5 years, SCHZ returned 0.14%/yr vs 7.74%/yr for SWYFX. At a 0.18 correlation, their price movements are largely independent. SCHZ charges 0.03%/yr vs 0.04%/yr for SWYFX.

Performance

SCHZ vs. SWYFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab Target 2035 Index Fund (SWYFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHZ achieves a 0.60% return, which is significantly lower than SWYFX's 8.10% return.

SCHZ

• 1D: 0.09%
• 1M: 1.14%
• YTD: 0.60%
• 6M: 0.93%
• 1Y: 4.97%
• 3Y*: 4.02%
• 5Y*: 0.14%
• 10Y*: 1.50%

SWYFX

• 1D: 0.29%
• 1M: 1.68%
• YTD: 8.10%
• 6M: 8.55%
• 1Y: 19.87%
• 3Y*: 14.85%
• 5Y*: 7.74%
• 10Y*: —

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

SCHZ vs. SWYFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHZ Schwab U.S. Aggregate Bond ETF	0.60%	7.24%	1.26%	5.60%	-13.17%	-1.72%	7.46%	8.65%	-0.26%	3.50%
SWYFX Schwab Target 2035 Index Fund	8.10%	16.40%	11.71%	18.20%	-16.36%	14.26%	13.85%	22.37%	-7.99%	17.84%

Correlation

The correlation between SCHZ and SWYFX is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (All Time) Calculated using the full available price history since Aug 30, 2016	0.18

Over the past year, SCHZ and SWYFX have become more correlated (0.46) than their long-term average of 0.18, meaning their price movements have been converging.

Return for Risk

SCHZ vs. SWYFX — Risk / Return Rank

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

SCHZ

SCHZ Risk / Return Rank: 41
SCHZ Sharpe Ratio Rank: 42
SCHZ Sortino Ratio Rank: 44
SCHZ Omega Ratio Rank: 39
SCHZ Calmar Ratio Rank: 41
SCHZ Martin Ratio Rank: 38

SWYFX

SWYFX Risk / Return Rank: 67
SWYFX Sharpe Ratio Rank: 66
SWYFX Sortino Ratio Rank: 65
SWYFX Omega Ratio Rank: 64
SWYFX Calmar Ratio Rank: 66
SWYFX Martin Ratio Rank: 75

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.

SCHZ vs. SWYFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab Target 2035 Index Fund (SWYFX). 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.

	SCHZ	SWYFX	Difference
Sharpe ratio: Return per unit of total volatility	1.34	2.02	-0.69
Sortino ratio: Return per unit of downside risk	2.01	2.84	-0.83
Omega ratio: Gain probability vs. loss probability	1.24	1.37	-0.14
Calmar ratio: Return relative to maximum drawdown	1.85	2.76	-0.91
Martin ratio: Return relative to average drawdown	5.42	12.09	-6.67

SCHZ vs. SWYFX - Sharpe Ratio Comparison

The current SCHZ Sharpe Ratio is 1.34, which is lower than the SWYFX Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of SCHZ and SWYFX, 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

SCHZ vs. SWYFX - Drawdown Comparison

The maximum SCHZ drawdown since its inception was -18.74%, smaller than the maximum SWYFX drawdown of -25.51%. Use the drawdown chart below to compare losses from any high point for SCHZ and SWYFX.

Drawdown Indicators

	SCHZ	SWYFX	Difference
Max Drawdown Largest peak-to-trough decline	-18.74%	-25.51%	+6.77%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-6.82%	+4.12%
Max Drawdown (3Y) Largest decline over 3 years	-6.18%	-11.61%	+5.43%
Max Drawdown (5Y) Largest decline over 5 years	-18.01%	-23.19%	+5.18%
Max Drawdown (10Y) Largest decline over 10 years	-18.74%	—	—
Current Drawdown Current decline from peak	-2.17%	-1.01%	-1.16%
Average Drawdown Average peak-to-trough decline	-3.68%	-4.00%	+0.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	1.56%	-0.64%

Volatility

SCHZ vs. SWYFX - Volatility Comparison

The current volatility for Schwab U.S. Aggregate Bond ETF (SCHZ) is 1.33%, while Schwab Target 2035 Index Fund (SWYFX) has a volatility of 3.70%. This indicates that SCHZ experiences smaller price fluctuations and is considered to be less risky than SWYFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHZ	SWYFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.33%	3.70%	-2.37%
Volatility (6M) Calculated over the trailing 6-month period	2.76%	7.59%	-4.83%
Volatility (1Y) Calculated over the trailing 1-year period	3.74%	9.30%	-5.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.09%	12.13%	-6.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.42%	12.85%	-7.43%

SCHZ vs. SWYFX - Expense Ratio Comparison

SCHZ has a 0.03% expense ratio, which is lower than SWYFX's 0.04% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHZ vs. SWYFX - Dividend Comparison

SCHZ's dividend yield for the trailing twelve months is around 4.11%, more than SWYFX's 2.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHZ Schwab U.S. Aggregate Bond ETF	4.11%	4.05%	3.96%	3.28%	2.63%	2.16%	2.43%	2.79%	2.56%	2.40%	2.24%	2.11%
SWYFX Schwab Target 2035 Index Fund	2.11%	2.28%	2.37%	2.14%	2.02%	1.80%	1.73%	2.00%	0.00%	1.44%	0.99%	0.00%

Frequently Asked Questions

Can I hold both SCHZ and SWYFX in my portfolio?

SCHZ and SWYFX have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHZ or SWYFX?

SWYFX has higher volatility (3.70%) compared to SCHZ (1.33%). In terms of maximum drawdown, SCHZ dropped -18.74% vs SWYFX's -25.51%.

Which has better risk-adjusted returns?

SWYFX currently has the higher Sharpe Ratio (2.02 vs 1.34), 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.