SWERX vs. SWTSX
SWERX (Schwab Target 2040 Fund) and SWTSX (Schwab Total Stock Market Index Fund) are both mutual funds - SWERX is a Target Retirement Date fund managed by Charles Schwab, while SWTSX is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Total Stock Market Index. Over the past 10 years, SWERX returned 10.12%/yr vs 14.99%/yr for SWTSX. With a 0.96 correlation, they move nearly in lockstep. SWERX charges 0.00%/yr vs 0.03%/yr for SWTSX.
Performance
SWERX vs. SWTSX - Performance Comparison
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Returns By Period
In the year-to-date period, SWERX achieves a 8.62% return, which is significantly lower than SWTSX's 11.17% return. Over the past 10 years, SWERX has underperformed SWTSX with an annualized return of 10.12%, while SWTSX has yielded a comparatively higher 14.99% 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%
SWTSX
- 1D
- -0.76%
- 1M
- 4.05%
- YTD
- 11.17%
- 6M
- 10.89%
- 1Y
- 28.05%
- 3Y*
- 22.05%
- 5Y*
- 12.67%
- 10Y*
- 14.99%
SWERX vs. SWTSX - 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% |
SWTSX Schwab Total Stock Market Index Fund | 11.17% | 17.04% | 23.84% | 26.05% | -19.54% | 25.65% | 20.71% | 30.90% | -5.35% | 21.08% |
Correlation
The correlation between SWERX and SWTSX is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
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 SWTSX has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.
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Return for Risk
SWERX vs. SWTSX — Risk / Return Rank
SWERX
SWTSX
SWERX vs. SWTSX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Fund (SWERX) and Schwab Total Stock Market Index Fund (SWTSX). 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 | SWTSX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.12 | ||
| Sortino ratioReturn per unit of downside risk | -0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.41 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.71 | 3.17 | -0.47 |
| Martin ratioReturn relative to average drawdown | 11.97 | 14.55 | -2.58 |
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 | SWTSX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.18 | 2.30 | -0.12 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.53 | 0.73 | -0.20 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.68 | 0.81 | -0.12 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.53 | 0.44 | +0.10 |
Drawdowns
SWERX vs. SWTSX - Drawdown Comparison
The maximum SWERX drawdown since its inception was -48.24%, smaller than the maximum SWTSX drawdown of -54.60%. Use the drawdown chart below to compare losses from any high point for SWERX and SWTSX.
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Drawdown Indicators
| SWERX | SWTSX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.24% | -54.60% | +6.36% |
Max Drawdown (1Y)Largest decline over 1 year | -8.08% | -8.88% | +0.80% |
Max Drawdown (3Y)Largest decline over 3 years | -13.05% | -19.43% | +6.38% |
Max Drawdown (5Y)Largest decline over 5 years | -30.40% | -25.40% | -5.00% |
Max Drawdown (10Y)Largest decline over 10 years | -30.40% | -35.01% | +4.61% |
Current DrawdownCurrent decline from peak | -0.60% | -0.76% | +0.16% |
Average DrawdownAverage peak-to-trough decline | -7.14% | -10.57% | +3.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.82% | 1.93% | -0.11% |
Volatility
SWERX vs. SWTSX - Volatility Comparison
Schwab Target 2040 Fund (SWERX) and Schwab Total Stock Market Index Fund (SWTSX) have volatilities of 2.99% and 3.07%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SWERX | SWTSX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.99% | 3.07% | -0.08% |
Volatility (6M)Calculated over the trailing 6-month period | 7.92% | 9.23% | -1.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.02% | 12.29% | -2.27% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.99% | 17.44% | -2.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.84% | 18.61% | -3.77% |
SWERX vs. SWTSX - Expense Ratio Comparison
SWERX has a 0.00% expense ratio, which is lower than SWTSX's 0.03% 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%.
Dividends
SWERX vs. SWTSX - Dividend Comparison
SWERX's dividend yield for the trailing twelve months is around 6.62%, more than SWTSX's 0.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
SWTSX Schwab Total Stock Market Index Fund | 0.99% | 1.10% | 1.24% | 1.41% | 1.62% | 1.46% | 1.63% | 1.92% | 2.58% | 1.83% | 2.32% | 2.79% |
Frequently Asked Questions
With a correlation of 0.96, SWERX and SWTSX 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.
SWTSX has higher volatility (3.07%) compared to SWERX (2.99%). In terms of maximum drawdown, SWERX dropped -48.24% vs SWTSX's -54.60%.
SWTSX currently has the higher Sharpe Ratio (2.30 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.
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