SWERX vs. VFORX
Compare and contrast key facts about Schwab Target 2040 Fund (SWERX) and Vanguard Target Retirement 2040 Fund (VFORX).
SWERX is managed by Charles Schwab. It was launched on Jun 30, 2005. VFORX is managed by Vanguard. It was launched on Jun 7, 2006.
Performance
SWERX vs. VFORX - Performance Comparison
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SWERX vs. VFORX - 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% |
VFORX Vanguard Target Retirement 2040 Fund | -3.32% | 18.77% | 12.90% | 18.56% | -17.00% | 14.55% | 15.48% | 23.86% | -7.32% | 18.45% |
Returns By Period
In the year-to-date period, SWERX achieves a -3.60% return, which is significantly lower than VFORX's -3.32% return. Over the past 10 years, SWERX has underperformed VFORX with an annualized return of 9.01%, while VFORX has yielded a comparatively higher 9.48% 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%
VFORX
- 1D
- -0.14%
- 1M
- -7.37%
- YTD
- -3.32%
- 6M
- -0.71%
- 1Y
- 15.06%
- 3Y*
- 13.11%
- 5Y*
- 7.08%
- 10Y*
- 9.48%
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SWERX vs. VFORX - Expense Ratio Comparison
SWERX has a 0.00% expense ratio, which is lower than VFORX's 0.08% 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. VFORX — Risk / Return Rank
SWERX
VFORX
SWERX vs. VFORX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Fund (SWERX) and Vanguard Target Retirement 2040 Fund (VFORX). 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 | VFORX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.07 | 1.22 | -0.15 |
Sortino ratioReturn per unit of downside risk | 1.56 | 1.76 | -0.20 |
Omega ratioGain probability vs. loss probability | 1.23 | 1.26 | -0.03 |
Calmar ratioReturn relative to maximum drawdown | 1.34 | 1.55 | -0.21 |
Martin ratioReturn relative to average drawdown | 6.09 | 7.04 | -0.95 |
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 | VFORX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.07 | 1.22 | -0.15 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.45 | 0.58 | -0.13 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.61 | 0.70 | -0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.46 | +0.03 |
Correlation
The correlation between SWERX and VFORX is 0.98, 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. VFORX - Dividend Comparison
SWERX's dividend yield for the trailing twelve months is around 7.45%, more than VFORX's 2.86% 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% |
VFORX Vanguard Target Retirement 2040 Fund | 2.86% | 2.77% | 2.86% | 2.38% | 2.60% | 20.68% | 2.06% | 2.28% | 2.58% | 0.04% | 2.40% | 2.99% |
Drawdowns
SWERX vs. VFORX - Drawdown Comparison
The maximum SWERX drawdown since its inception was -48.24%, smaller than the maximum VFORX drawdown of -51.63%. Use the drawdown chart below to compare losses from any high point for SWERX and VFORX.
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Drawdown Indicators
| SWERX | VFORX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.24% | -51.63% | +3.39% |
Max Drawdown (1Y)Largest decline over 1 year | -9.38% | -8.88% | -0.50% |
Max Drawdown (5Y)Largest decline over 5 years | -30.40% | -24.32% | -6.08% |
Max Drawdown (10Y)Largest decline over 10 years | -30.40% | -29.35% | -1.05% |
Current DrawdownCurrent decline from peak | -8.08% | -7.70% | -0.38% |
Average DrawdownAverage peak-to-trough decline | -7.20% | -6.82% | -0.38% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.07% | 1.96% | +0.11% |
Volatility
SWERX vs. VFORX - Volatility Comparison
Schwab Target 2040 Fund (SWERX) and Vanguard Target Retirement 2040 Fund (VFORX) have volatilities of 4.18% and 4.11%, 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 | VFORX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.18% | 4.11% | +0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 7.52% | 7.24% | +0.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.11% | 12.42% | +0.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.93% | 12.35% | +2.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.81% | 13.64% | +1.17% |