SWERX vs. FBALX

Last updated Jun 5, 2026

SWERX (Schwab Target 2040 Fund) and FBALX (Fidelity Balanced Fund) are both mutual funds - SWERX is a Target Retirement Date fund managed by Charles Schwab, while FBALX is a Diversified Portfolio fund actively managed by Fidelity. Over the past 10 years, SWERX returned 10.12%/yr vs 11.72%/yr for FBALX. With a 0.96 correlation, they move nearly in lockstep. SWERX charges 0.00%/yr vs 0.46%/yr for FBALX.

Performance

SWERX vs. FBALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2040 Fund (SWERX) and Fidelity Balanced Fund (FBALX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWERX achieves a 8.62% return, which is significantly lower than FBALX's 9.83% return. Over the past 10 years, SWERX has underperformed FBALX with an annualized return of 10.12%, while FBALX has yielded a comparatively higher 11.72% annualized return.

SWERX

• 1D: -0.60%
• 1M: 2.49%
• YTD: 8.62%
• 6M: 9.08%
• 1Y: 21.43%
• 3Y*: 16.37%
• 5Y*: 7.92%
• 10Y*: 10.12%

FBALX

• 1D: -0.42%
• 1M: 2.93%
• YTD: 9.83%
• 6M: 10.10%
• 1Y: 24.05%
• 3Y*: 16.63%
• 5Y*: 9.24%
• 10Y*: 11.72%

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

SWERX vs. FBALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWERX Schwab Target 2040 Fund	8.62%	17.71%	12.74%	19.06%	-18.57%	15.65%	14.44%	23.01%	-9.11%	20.48%
FBALX Fidelity Balanced Fund	9.83%	15.11%	16.09%	20.31%	-18.29%	18.27%	22.45%	24.40%	-3.98%	16.52%

Correlation

The correlation between SWERX and FBALX is 0.95, 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jul 5, 2005	0.96

The correlation between SWERX and FBALX has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

Return for Risk

SWERX vs. FBALX — Risk / Return Rank

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

SWERX

SWERX Risk / Return Rank: 54
SWERX Sharpe Ratio Rank: 54
SWERX Sortino Ratio Rank: 53
SWERX Omega Ratio Rank: 53
SWERX Calmar Ratio Rank: 50
SWERX Martin Ratio Rank: 61

FBALX

FBALX Risk / Return Rank: 85
FBALX Sharpe Ratio Rank: 87
FBALX Sortino Ratio Rank: 83
FBALX Omega Ratio Rank: 81
FBALX Calmar Ratio Rank: 82
FBALX Martin Ratio Rank: 90

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.

SWERX vs. FBALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Fund (SWERX) and Fidelity Balanced Fund (FBALX). 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.

	SWERX	FBALX	Difference
Sharpe ratio: Return per unit of total volatility	2.18	2.85	-0.67
Sortino ratio: Return per unit of downside risk	3.08	4.03	-0.95
Omega ratio: Gain probability vs. loss probability	1.40	1.54	-0.14
Calmar ratio: Return relative to maximum drawdown	2.71	3.79	-1.09
Martin ratio: Return relative to average drawdown	11.97	18.16	-6.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWERX vs. FBALX - Sharpe Ratio Comparison

The current SWERX Sharpe Ratio is 2.18, which is comparable to the FBALX Sharpe Ratio of 2.85. The chart below compares the historical Sharpe Ratios of SWERX and FBALX, 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

	SWERX	FBALX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.18	2.85	-0.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.76	-0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.92	-0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.81	-0.28

Drawdowns

SWERX vs. FBALX - Drawdown Comparison

The maximum SWERX drawdown since its inception was -48.24%, which is greater than FBALX's maximum drawdown of -43.57%. Use the drawdown chart below to compare losses from any high point for SWERX and FBALX.

Drawdown Indicators

	SWERX	FBALX	Difference
Max Drawdown Largest peak-to-trough decline	-48.24%	-43.57%	-4.67%
Max Drawdown (1Y) Largest decline over 1 year	-8.08%	-6.47%	-1.61%
Max Drawdown (3Y) Largest decline over 3 years	-13.05%	-12.88%	-0.17%
Max Drawdown (5Y) Largest decline over 5 years	-30.40%	-22.89%	-7.51%
Max Drawdown (10Y) Largest decline over 10 years	-30.40%	-26.68%	-3.72%
Current Drawdown Current decline from peak	-0.60%	-0.42%	-0.18%
Average Drawdown Average peak-to-trough decline	-7.14%	-4.37%	-2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.82%	1.35%	+0.47%

Volatility

SWERX vs. FBALX - Volatility Comparison

Schwab Target 2040 Fund (SWERX) has a higher volatility of 2.99% compared to Fidelity Balanced Fund (FBALX) at 2.62%. This indicates that SWERX's price experiences larger fluctuations and is considered to be riskier than FBALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWERX	FBALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.99%	2.62%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	7.92%	6.80%	+1.12%
Volatility (1Y) Calculated over the trailing 1-year period	10.02%	8.60%	+1.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.99%	12.18%	+2.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.84%	12.78%	+2.06%

SWERX vs. FBALX - Expense Ratio Comparison

SWERX has a 0.00% expense ratio, which is lower than FBALX's 0.46% expense ratio.

Dividends

SWERX vs. FBALX - Dividend Comparison

SWERX's dividend yield for the trailing twelve months is around 6.62%, more than FBALX's 5.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FBALX Fidelity Balanced Fund	5.16%	5.69%	5.67%	2.28%	8.06%	9.66%	5.90%	4.24%	10.99%	7.90%	3.07%	7.70%
SWERX Schwab Target 2040 Fund	6.62%	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 SWERX and FBALX in my portfolio?

With a correlation of 0.95, SWERX and FBALX 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, SWERX or FBALX?

SWERX has higher volatility (2.99%) compared to FBALX (2.62%). In terms of maximum drawdown, SWERX dropped -48.24% vs FBALX's -43.57%.

Which has better risk-adjusted returns?

FBALX currently has the higher Sharpe Ratio (2.85 vs 2.18), 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.