SWERX vs. SPY
Compare and contrast key facts about Schwab Target 2040 Fund (SWERX) and State Street 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.
Performance
SWERX vs. SPY - Performance Comparison
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SWERX vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SWERX Schwab Target 2040 Fund | -3.60% | 17.71% | 12.74% | 19.06% | -18.57% | 15.65% | 14.44% | 23.01% | -9.11% | 20.48% |
SPY State Street SPDR S&P 500 ETF | -4.37% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 21.71% |
Returns By Period
In the year-to-date period, SWERX achieves a -3.60% return, which is significantly higher than SPY's -4.37% return. Over the past 10 years, SWERX has underperformed SPY with an annualized return of 9.01%, while SPY has yielded a comparatively higher 13.98% annualized return.
SWERX
- 1D
- -0.21%
- 1M
- -7.72%
- YTD
- -3.60%
- 6M
- -1.12%
- 1Y
- 13.92%
- 3Y*
- 12.66%
- 5Y*
- 6.63%
- 10Y*
- 9.01%
SPY
- 1D
- 2.91%
- 1M
- -4.94%
- YTD
- -4.37%
- 6M
- -1.82%
- 1Y
- 17.59%
- 3Y*
- 18.19%
- 5Y*
- 11.69%
- 10Y*
- 13.98%
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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%.
Return for Risk
SWERX vs. SPY — Risk / Return Rank
SWERX
SPY
SWERX vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Fund (SWERX) 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.
| SWERX | SPY | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.07 | 0.93 | +0.14 |
Sortino ratioReturn per unit of downside risk | 1.56 | 1.45 | +0.10 |
Omega ratioGain probability vs. loss probability | 1.23 | 1.22 | 0.00 |
Calmar ratioReturn relative to maximum drawdown | 1.34 | 1.53 | -0.18 |
Martin ratioReturn relative to average drawdown | 6.09 | 7.30 | -1.21 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SWERX | SPY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.07 | 0.93 | +0.14 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.45 | 0.69 | -0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.61 | 0.78 | -0.17 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.56 | -0.07 |
Correlation
The correlation between SWERX and SPY is 0.95, 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.
Dividends
SWERX vs. SPY - Dividend Comparison
SWERX's dividend yield for the trailing twelve months is around 7.45%, more than SPY's 1.14% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SWERX Schwab Target 2040 Fund | 7.45% | 7.19% | 5.00% | 3.83% | 8.31% | 6.96% | 3.33% | 7.69% | 8.57% | 4.13% | 6.76% | 10.85% |
SPY State Street SPDR S&P 500 ETF | 1.14% | 1.07% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% |
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.
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Drawdown Indicators
| SWERX | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.24% | -55.19% | +6.95% |
Max Drawdown (1Y)Largest decline over 1 year | -9.38% | -12.05% | +2.67% |
Max Drawdown (5Y)Largest decline over 5 years | -30.40% | -24.50% | -5.90% |
Max Drawdown (10Y)Largest decline over 10 years | -30.40% | -33.72% | +3.32% |
Current DrawdownCurrent decline from peak | -8.08% | -6.24% | -1.84% |
Average DrawdownAverage peak-to-trough decline | -7.20% | -9.09% | +1.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.07% | 2.52% | -0.45% |
Volatility
SWERX vs. SPY - Volatility Comparison
The current volatility for Schwab Target 2040 Fund (SWERX) is 4.18%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 5.31%. 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.
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Volatility by Period
| SWERX | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.18% | 5.31% | -1.13% |
Volatility (6M)Calculated over the trailing 6-month period | 7.52% | 9.47% | -1.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.11% | 19.05% | -5.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.93% | 17.06% | -2.13% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.81% | 17.92% | -3.11% |