SWJRX vs. SPY

Last updated Jun 4, 2026

SWJRX (Schwab Monthly Income Fund - Moderate Payout) and SPY (State Street SPDR S&P 500 ETF) are both funds - SWJRX is a Diversified Portfolio fund managed by Charles Schwab, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, SWJRX returned 5.24%/yr vs 15.49%/yr for SPY. Their correlation of 0.83 suggests significant overlap in exposure. SWJRX charges 0.00%/yr vs 0.09%/yr for SPY.

Performance

SWJRX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Monthly Income Fund - Moderate Payout (SWJRX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWJRX achieves a 6.49% return, which is significantly lower than SPY's 10.91% return. Over the past 10 years, SWJRX has underperformed SPY with an annualized return of 5.24%, while SPY has yielded a comparatively higher 15.49% annualized return.

SWJRX

• 1D: 0.18%
• 1M: 0.96%
• YTD: 6.49%
• 6M: 6.82%
• 1Y: 14.22%
• 3Y*: 9.87%
• 5Y*: 3.94%
• 10Y*: 5.24%

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SWJRX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWJRX Schwab Monthly Income Fund - Moderate Payout	6.49%	12.17%	3.83%	8.79%	-12.81%	9.23%	5.32%	16.40%	-6.31%	10.80%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between SWJRX and SPY is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Apr 1, 2008	0.83

Over the past year, the correlation between SWJRX and SPY has dropped to 0.53 - well below their long-term average of 0.83, suggesting their price drivers have been diverging.

Return for Risk

SWJRX vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SWJRX

SWJRX Risk / Return Rank: 68
SWJRX Sharpe Ratio Rank: 74
SWJRX Sortino Ratio Rank: 76
SWJRX Omega Ratio Rank: 70
SWJRX Calmar Ratio Rank: 66
SWJRX Martin Ratio Rank: 56

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SWJRX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Monthly Income Fund - Moderate Payout (SWJRX) 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.

	SWJRX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.50	2.38	+0.13
Sortino ratio: Return per unit of downside risk	3.65	3.24	+0.41
Omega ratio: Gain probability vs. loss probability	1.47	1.43	+0.04
Calmar ratio: Return relative to maximum drawdown	3.12	3.16	-0.05
Martin ratio: Return relative to average drawdown	11.31	14.72	-3.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWJRX vs. SPY - Sharpe Ratio Comparison

The current SWJRX Sharpe Ratio is 2.50, which is comparable to the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of SWJRX and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SWJRX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.50	2.38	+0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	0.82	-0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.87	-0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.59	+0.01

Drawdowns

SWJRX vs. SPY - Drawdown Comparison

The maximum SWJRX drawdown since its inception was -25.61%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SWJRX and SPY.

Drawdown Indicators

	SWJRX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-25.61%	-55.19%	+29.58%
Max Drawdown (1Y) Largest decline over 1 year	-4.55%	-8.88%	+4.33%
Max Drawdown (3Y) Largest decline over 3 years	-8.18%	-18.76%	+10.58%
Max Drawdown (5Y) Largest decline over 5 years	-20.87%	-24.50%	+3.63%
Max Drawdown (10Y) Largest decline over 10 years	-20.87%	-33.72%	+12.85%
Current Drawdown Current decline from peak	-0.93%	-0.70%	-0.23%
Average Drawdown Average peak-to-trough decline	-3.89%	-9.05%	+5.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.25%	1.91%	-0.66%

Volatility

SWJRX vs. SPY - Volatility Comparison

The current volatility for Schwab Monthly Income Fund - Moderate Payout (SWJRX) is 1.65%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 2.84%. This indicates that SWJRX 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.

Volatility by Period

	SWJRX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.65%	2.84%	-1.19%
Volatility (6M) Calculated over the trailing 6-month period	4.30%	8.90%	-4.60%
Volatility (1Y) Calculated over the trailing 1-year period	5.66%	11.83%	-6.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.71%	17.05%	-8.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.58%	17.94%	-9.36%

SWJRX vs. SPY - Expense Ratio Comparison

SWJRX 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%.

Dividends

SWJRX vs. SPY - Dividend Comparison

SWJRX's dividend yield for the trailing twelve months is around 4.68%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	0.98%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
SWJRX Schwab Monthly Income Fund - Moderate Payout	4.68%	4.78%	4.94%	4.80%	8.67%	3.62%	2.49%	5.36%	3.47%	2.93%	6.05%	6.80%

Frequently Asked Questions

Can I hold both SWJRX and SPY in my portfolio?

SWJRX and SPY have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWJRX or SPY?

SPY has higher volatility (2.84%) compared to SWJRX (1.65%). In terms of maximum drawdown, SWJRX dropped -25.61% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SWJRX currently has the higher Sharpe Ratio (2.50 vs 2.38), 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.