SWDRX vs. SPY

Last updated Jun 3, 2026

SWDRX (Schwab Target 2030 Fund) and SPY (State Street SPDR S&P 500 ETF) are both funds - SWDRX is a Target Retirement Date fund managed by Charles Schwab, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, SWDRX returned 8.60%/yr vs 15.57%/yr for SPY. Their correlation of 0.94 suggests significant overlap in exposure. SWDRX charges 0.00%/yr vs 0.09%/yr for SPY.

Performance

SWDRX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2030 Fund (SWDRX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWDRX achieves a 6.57% return, which is significantly lower than SPY's 11.69% return. Over the past 10 years, SWDRX has underperformed SPY with an annualized return of 8.60%, while SPY has yielded a comparatively higher 15.57% annualized return.

SWDRX

• 1D: 0.06%
• 1M: 2.42%
• YTD: 6.57%
• 6M: 7.21%
• 1Y: 17.44%
• 3Y*: 13.51%
• 5Y*: 6.43%
• 10Y*: 8.60%

SPY

• 1D: 0.14%
• 1M: 5.40%
• YTD: 11.69%
• 6M: 12.09%
• 1Y: 29.62%
• 3Y*: 22.64%
• 5Y*: 14.20%
• 10Y*: 15.57%

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

SWDRX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWDRX Schwab Target 2030 Fund	6.57%	14.87%	10.52%	16.38%	-17.00%	12.52%	13.49%	20.41%	-7.20%	17.55%
SPY State Street SPDR S&P 500 ETF	11.69%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between SWDRX and SPY is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jul 5, 2005	0.94

The correlation between SWDRX and SPY has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.

SWDRX vs. SPY - Sectors Allocation Comparison

Sectors	SWDRX	SPY
Technology	26.0%	35.9%
Financial Services	12.0%	11.8%
Industrials	11.7%	7.8%
Healthcare	10.6%	8.4%
Consumer Cyclical	9.3%	10.3%
Communication Services	8.7%	11.3%
Real Estate	7.4%	1.9%
Consumer Defensive	4.6%	4.8%
Energy	4.3%	3.6%
Basic Materials	3.5%	1.8%
Utilities	2.0%	2.4%

Return for Risk

SWDRX vs. SPY — Risk / Return Rank

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

SWDRX

SWDRX Risk / Return Rank: 60
SWDRX Sharpe Ratio Rank: 61
SWDRX Sortino Ratio Rank: 61
SWDRX Omega Ratio Rank: 60
SWDRX Calmar Ratio Rank: 54
SWDRX Martin Ratio Rank: 63

SPY

SPY Risk / Return Rank: 75
SPY Sharpe Ratio Rank: 77
SPY Sortino Ratio Rank: 75
SPY Omega Ratio Rank: 76
SPY Calmar Ratio Rank: 68
SPY Martin Ratio Rank: 80

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.

SWDRX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2030 Fund (SWDRX) and State Street SPDR S&P 500 ETF (SPY). 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.

	SWDRX	SPY	Difference
Sharpe ratio Return per unit of total volatility	2.31	2.52	-0.21
Sortino ratio Return per unit of downside risk	3.29	3.42	-0.12
Omega ratio Gain probability vs. loss probability	1.43	1.46	-0.03
Calmar ratio Return relative to maximum drawdown	2.85	3.42	-0.57
Martin ratio Return relative to average drawdown	12.52	15.93	-3.41
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWDRX vs. SPY - Sharpe Ratio Comparison

The current SWDRX Sharpe Ratio is 2.31, which is comparable to the SPY Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of SWDRX and SPY, 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

	SWDRX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.31	2.52	-0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	0.84	-0.32
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.70	0.87	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.59	-0.04

Drawdowns

SWDRX vs. SPY - Drawdown Comparison

The maximum SWDRX drawdown since its inception was -45.34%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SWDRX and SPY.

Drawdown Indicators

	SWDRX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-45.34%	-55.19%	+9.85%
Max Drawdown (1Y) Largest decline over 1 year	-6.27%	-8.88%	+2.61%
Max Drawdown (3Y) Largest decline over 3 years	-9.71%	-18.76%	+9.05%
Max Drawdown (5Y) Largest decline over 5 years	-28.17%	-24.50%	-3.67%
Max Drawdown (10Y) Largest decline over 10 years	-28.17%	-33.72%	+5.55%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-6.48%	-9.05%	+2.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.43%	1.91%	-0.48%

Volatility

SWDRX vs. SPY - Volatility Comparison

The current volatility for Schwab Target 2030 Fund (SWDRX) is 2.35%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 2.75%. This indicates that SWDRX experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWDRX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.35%	2.75%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	6.11%	8.89%	-2.78%
Volatility (1Y) Calculated over the trailing 1-year period	7.74%	11.81%	-4.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.58%	17.05%	-4.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.27%	17.94%	-5.67%

SWDRX vs. SPY - Expense Ratio Comparison

SWDRX has a 0.00% expense ratio, which is lower than SPY's 0.09% 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

SWDRX vs. SPY - Dividend Comparison

SWDRX's dividend yield for the trailing twelve months is around 7.80%, more than SPY's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	0.97%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
SWDRX Schwab Target 2030 Fund	7.80%	8.31%	6.37%	4.28%	6.77%	6.92%	3.23%	6.60%	7.03%	4.86%	5.87%	9.35%

Frequently Asked Questions

Can I hold both SWDRX and SPY in my portfolio?

With a correlation of 0.93, SWDRX and SPY 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, SWDRX or SPY?

SPY has higher volatility (2.75%) compared to SWDRX (2.35%). In terms of maximum drawdown, SWDRX dropped -45.34% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.52 vs 2.31), 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.