SWDSX vs. SWHRX

Last updated Jun 4, 2026

SWDSX (Schwab Dividend Equity Fund™) and SWHRX (Schwab Target 2025 Fund) are both mutual funds - SWDSX is a Large Cap Value Equities fund managed by Charles Schwab, while SWHRX is a Target Retirement Date fund managed by Charles Schwab. Over the past 10 years, SWDSX returned 9.14%/yr vs 7.46%/yr for SWHRX. Their correlation of 0.88 suggests significant overlap in exposure. SWDSX charges 0.89%/yr vs 0.00%/yr for SWHRX.

Performance

SWDSX vs. SWHRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Dividend Equity Fund™ (SWDSX) and Schwab Target 2025 Fund (SWHRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWDSX achieves a 7.10% return, which is significantly higher than SWHRX's 5.19% return. Over the past 10 years, SWDSX has outperformed SWHRX with an annualized return of 9.14%, while SWHRX has yielded a comparatively lower 7.46% annualized return.

SWDSX

• 1D: 0.79%
• 1M: 2.03%
• YTD: 7.10%
• 6M: 4.82%
• 1Y: 14.29%
• 3Y*: 15.03%
• 5Y*: 8.88%
• 10Y*: 9.14%

SWHRX

• 1D: 0.13%
• 1M: 2.33%
• YTD: 5.19%
• 6M: 5.43%
• 1Y: 14.24%
• 3Y*: 11.38%
• 5Y*: 5.29%
• 10Y*: 7.46%

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

SWDSX vs. SWHRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWDSX Schwab Dividend Equity Fund™	7.10%	12.31%	17.06%	6.92%	-5.84%	28.24%	-4.33%	24.32%	-12.18%	15.40%
SWHRX Schwab Target 2025 Fund	5.19%	12.70%	8.78%	14.29%	-15.90%	10.31%	12.55%	18.66%	-6.00%	15.57%

Correlation

The correlation between SWDSX and SWHRX is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Mar 13, 2008	0.88

Over the past year, the correlation between SWDSX and SWHRX has dropped to 0.66 - well below their long-term average of 0.88, suggesting their price drivers have been diverging.

Return for Risk

SWDSX vs. SWHRX — Risk / Return Rank

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

SWDSX

SWDSX Risk / Return Rank: 33
SWDSX Sharpe Ratio Rank: 31
SWDSX Sortino Ratio Rank: 28
SWDSX Omega Ratio Rank: 31
SWDSX Calmar Ratio Rank: 39
SWDSX Martin Ratio Rank: 37

SWHRX

SWHRX Risk / Return Rank: 61
SWHRX Sharpe Ratio Rank: 62
SWHRX Sortino Ratio Rank: 64
SWHRX Omega Ratio Rank: 62
SWHRX Calmar Ratio Rank: 53
SWHRX Martin Ratio Rank: 63

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.

SWDSX vs. SWHRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Dividend Equity Fund™ (SWDSX) and Schwab Target 2025 Fund (SWHRX). 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.

	SWDSX	SWHRX	Difference
Sharpe ratio Return per unit of total volatility	1.59	2.32	-0.73
Sortino ratio Return per unit of downside risk	2.20	3.36	-1.16
Omega ratio Gain probability vs. loss probability	1.29	1.44	-0.15
Calmar ratio Return relative to maximum drawdown	2.38	2.78	-0.39
Martin ratio Return relative to average drawdown	8.06	12.29	-4.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWDSX vs. SWHRX - Sharpe Ratio Comparison

The current SWDSX Sharpe Ratio is 1.59, which is lower than the SWHRX Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of SWDSX and SWHRX, 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

	SWDSX	SWHRX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.59	2.32	-0.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.49	+0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.71	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.56	-0.07

Drawdowns

SWDSX vs. SWHRX - Drawdown Comparison

The maximum SWDSX drawdown since its inception was -50.01%, which is greater than SWHRX's maximum drawdown of -37.97%. Use the drawdown chart below to compare losses from any high point for SWDSX and SWHRX.

Drawdown Indicators

	SWDSX	SWHRX	Difference
Max Drawdown Largest peak-to-trough decline	-50.01%	-37.97%	-12.04%
Max Drawdown (1Y) Largest decline over 1 year	-6.16%	-5.18%	-0.98%
Max Drawdown (3Y) Largest decline over 3 years	-11.67%	-7.77%	-3.90%
Max Drawdown (5Y) Largest decline over 5 years	-17.94%	-26.06%	+8.12%
Max Drawdown (10Y) Largest decline over 10 years	-40.20%	-26.06%	-14.14%
Current Drawdown Current decline from peak	-0.21%	0.00%	-0.21%
Average Drawdown Average peak-to-trough decline	-6.78%	-5.34%	-1.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.81%	1.17%	+0.64%

Volatility

SWDSX vs. SWHRX - Volatility Comparison

Schwab Dividend Equity Fund™ (SWDSX) has a higher volatility of 2.21% compared to Schwab Target 2025 Fund (SWHRX) at 2.04%. This indicates that SWDSX's price experiences larger fluctuations and is considered to be riskier than SWHRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWDSX	SWHRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.21%	2.04%	+0.17%
Volatility (6M) Calculated over the trailing 6-month period	7.39%	4.98%	+2.41%
Volatility (1Y) Calculated over the trailing 1-year period	9.25%	6.20%	+3.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.20%	10.92%	+2.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.90%	10.50%	+6.40%

SWDSX vs. SWHRX - Expense Ratio Comparison

SWDSX has a 0.89% expense ratio, which is higher than SWHRX's 0.00% expense ratio.

Dividends

SWDSX vs. SWHRX - Dividend Comparison

SWDSX's dividend yield for the trailing twelve months is around 1.16%, less than SWHRX's 9.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWDSX Schwab Dividend Equity Fund™	1.16%	1.22%	2.59%	2.25%	6.83%	16.25%	2.09%	6.86%	11.63%	10.24%	1.68%	14.46%
SWHRX Schwab Target 2025 Fund	9.63%	10.13%	7.82%	5.19%	5.72%	6.41%	2.94%	5.47%	5.95%	3.78%	5.31%	7.05%

Frequently Asked Questions

Can I hold both SWDSX and SWHRX in my portfolio?

SWDSX and SWHRX have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWDSX or SWHRX?

SWDSX has higher volatility (2.21%) compared to SWHRX (2.04%). In terms of maximum drawdown, SWDSX dropped -50.01% vs SWHRX's -37.97%.

Which has better risk-adjusted returns?

SWHRX currently has the higher Sharpe Ratio (2.32 vs 1.59), 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.