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.
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.
Performance
SWERX vs. SPY - Performance Comparison
Key characteristics
SWERX:
0.23
SPY:
0.30
SWERX:
0.41
SPY:
0.56
SWERX:
1.06
SPY:
1.08
SWERX:
0.21
SPY:
0.31
SWERX:
0.87
SPY:
1.40
SWERX:
3.66%
SPY:
4.18%
SWERX:
13.99%
SPY:
19.64%
SWERX:
-48.64%
SPY:
-55.19%
SWERX:
-9.93%
SPY:
-13.86%
Returns By Period
In the year-to-date period, SWERX achieves a -3.68% return, which is significantly higher than SPY's -9.91% return. Over the past 10 years, SWERX has underperformed SPY with an annualized return of 2.29%, while SPY has yielded a comparatively higher 11.59% annualized return.
SWERX
-3.68%
-4.90%
-8.29%
3.67%
6.16%
2.29%
SPY
-9.91%
-6.90%
-9.38%
6.72%
14.62%
11.59%
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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 Rank
SWERX
SPY
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 2.27%, more than SPY's 1.36% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SWERX Schwab Target 2040 Fund | 2.27% | 2.18% | 2.06% | 1.88% | 2.80% | 1.32% | 2.17% | 2.74% | 2.61% | 1.64% | 2.17% | 2.43% |
SPY SPDR S&P 500 ETF | 1.36% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% |
Drawdowns
SWERX vs. SPY - Drawdown Comparison
The maximum SWERX drawdown since its inception was -48.64%, 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 9.21%, while SPDR S&P 500 ETF (SPY) has a volatility of 14.52%. 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.