SWERX vs. SPY
Compare and contrast key facts about Schwab Target 2040 Fund (SWERX) and SPDR S&P 500 ETF (SPY).
SWERX is managed by Charles Schwab. It was launched on Jun 30, 2005. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SWERX or SPY.
Key characteristics
| SWERX | SPY | |
|---|---|---|
| YTD Return | 14.78% | 26.83% |
| 1Y Return | 22.84% | 34.88% |
| 3Y Return (Ann) | 3.50% | 10.16% |
| 5Y Return (Ann) | 8.78% | 15.71% |
| 10Y Return (Ann) | 7.89% | 13.33% |
| Sharpe Ratio | 2.53 | 3.08 |
| Sortino Ratio | 3.43 | 4.10 |
| Omega Ratio | 1.52 | 1.58 |
| Calmar Ratio | 2.54 | 4.46 |
| Martin Ratio | 17.32 | 20.22 |
| Ulcer Index | 1.47% | 1.85% |
| Daily Std Dev | 10.11% | 12.18% |
| Max Drawdown | -48.24% | -55.19% |
| Current Drawdown | -0.98% | -0.26% |
Correlation
The correlation between SWERX and SPY is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SWERX vs. SPY - Performance Comparison
In the year-to-date period, SWERX achieves a 14.78% return, which is significantly lower than SPY's 26.83% return. Over the past 10 years, SWERX has underperformed SPY with an annualized return of 7.89%, while SPY has yielded a comparatively higher 13.33% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SWERX vs. SPY - Expense Ratio Comparison
SWERX 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%.
Risk-Adjusted Performance
SWERX vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Fund (SWERX) and 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.
Dividends
SWERX vs. SPY - Dividend Comparison
SWERX's dividend yield for the trailing twelve months is around 1.79%, more than SPY's 1.17% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SWERX Schwab Target 2040 Fund | 1.79% | 2.06% | 1.88% | 2.80% | 1.32% | 2.17% | 2.74% | 2.61% | 1.64% | 2.17% | 2.43% | 1.67% |
SPY SPDR S&P 500 ETF | 1.17% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
SWERX vs. SPY - Drawdown Comparison
The maximum SWERX drawdown since its inception was -48.24%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SWERX and SPY. For additional features, visit the drawdowns tool.
Volatility
SWERX vs. SPY - Volatility Comparison
The current volatility for Schwab Target 2040 Fund (SWERX) is 2.61%, while SPDR S&P 500 ETF (SPY) has a volatility of 3.77%. This indicates that SWERX 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.