SWMRX vs. SWPPX

Last updated Jun 23, 2026

SWMRX (Schwab Target 2045 Fund) and SWPPX (Schwab S&P 500 Index Fund) are both mutual funds - SWMRX is a Target Retirement Date fund managed by Charles Schwab, while SWPPX is a Large Cap Blend Equities fund tracking the S&P 500 Index. Over the past 10 years, SWMRX returned 10.79%/yr vs 15.55%/yr for SWPPX. Their correlation of 0.95 suggests significant overlap in exposure. SWMRX charges 0.00%/yr vs 0.02%/yr for SWPPX.

Performance

SWMRX vs. SWPPX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2045 Fund (SWMRX) and Schwab S&P 500 Index Fund (SWPPX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with SWMRX having a 9.87% return and SWPPX slightly higher at 10.15%. Over the past 10 years, SWMRX has underperformed SWPPX with an annualized return of 10.79%, while SWPPX has yielded a comparatively higher 15.55% annualized return.

SWMRX

• 1D: 1.03%
• 1M: 1.28%
• YTD: 9.87%
• 6M: 9.67%
• 1Y: 24.00%
• 3Y*: 16.50%
• 5Y*: 8.88%
• 10Y*: 10.79%

SWPPX

• 1D: 1.10%
• 1M: 0.47%
• YTD: 10.15%
• 6M: 9.65%
• 1Y: 27.14%
• 3Y*: 20.95%
• 5Y*: 14.08%
• 10Y*: 15.55%

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

SWMRX vs. SWPPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWMRX Schwab Target 2045 Fund	9.87%	18.84%	13.37%	20.10%	-19.24%	16.85%	14.95%	23.95%	-9.82%	21.39%
SWPPX Schwab S&P 500 Index Fund	10.15%	17.87%	24.96%	26.26%	-18.14%	28.67%	18.38%	31.46%	-4.47%	21.81%

Correlation

The correlation between SWMRX and SWPPX is 0.95 - 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jan 23, 2013	0.95

The correlation between SWMRX and SWPPX has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.

Return for Risk

SWMRX vs. SWPPX — Risk / Return Rank

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

SWMRX

SWMRX Risk / Return Rank: 58
SWMRX Sharpe Ratio Rank: 58
SWMRX Sortino Ratio Rank: 55
SWMRX Omega Ratio Rank: 56
SWMRX Calmar Ratio Rank: 56
SWMRX Martin Ratio Rank: 65

SWPPX

SWPPX Risk / Return Rank: 66
SWPPX Sharpe Ratio Rank: 64
SWPPX Sortino Ratio Rank: 58
SWPPX Omega Ratio Rank: 60
SWPPX Calmar Ratio Rank: 68
SWPPX Martin Ratio Rank: 79

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.

SWMRX vs. SWPPX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2045 Fund (SWMRX) and Schwab S&P 500 Index Fund (SWPPX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SWMRX	SWPPX	Difference
Sharpe ratio: Return per unit of total volatility	2.07	2.16	-0.09
Sortino ratio: Return per unit of downside risk	2.86	2.91	-0.05
Omega ratio: Gain probability vs. loss probability	1.38	1.39	-0.01
Calmar ratio: Return relative to maximum drawdown	2.75	3.04	-0.29
Martin ratio: Return relative to average drawdown	11.90	13.71	-1.81

SWMRX vs. SWPPX - Sharpe Ratio Comparison

The current SWMRX Sharpe Ratio is 2.07, which is comparable to the SWPPX Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of SWMRX and SWPPX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SWMRX vs. SWPPX - Drawdown Comparison

The maximum SWMRX drawdown since its inception was -30.41%, smaller than the maximum SWPPX drawdown of -55.06%. Use the drawdown chart below to compare losses from any high point for SWMRX and SWPPX.

Drawdown Indicators

	SWMRX	SWPPX	Difference
Max Drawdown Largest peak-to-trough decline	-30.41%	-55.06%	+24.65%
Max Drawdown (1Y) Largest decline over 1 year	-8.62%	-8.89%	+0.27%
Max Drawdown (3Y) Largest decline over 3 years	-14.20%	-18.74%	+4.54%
Max Drawdown (5Y) Largest decline over 5 years	-30.12%	-24.51%	-5.61%
Max Drawdown (10Y) Largest decline over 10 years	-30.41%	-33.80%	+3.39%
Current Drawdown Current decline from peak	-0.39%	-1.38%	+0.99%
Average Drawdown Average peak-to-trough decline	-5.16%	-9.93%	+4.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	1.97%	+0.02%

Volatility

SWMRX vs. SWPPX - Volatility Comparison

The current volatility for Schwab Target 2045 Fund (SWMRX) is 4.52%, while Schwab S&P 500 Index Fund (SWPPX) has a volatility of 4.83%. This indicates that SWMRX experiences smaller price fluctuations and is considered to be less risky than SWPPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWMRX	SWPPX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.52%	4.83%	-0.31%
Volatility (6M) Calculated over the trailing 6-month period	9.39%	9.94%	-0.55%
Volatility (1Y) Calculated over the trailing 1-year period	11.46%	12.50%	-1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.50%	17.03%	-1.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.54%	18.27%	-2.73%

SWMRX vs. SWPPX - Expense Ratio Comparison

SWMRX has a 0.00% expense ratio, which is lower than SWPPX's 0.02% 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

SWMRX vs. SWPPX - Dividend Comparison

SWMRX's dividend yield for the trailing twelve months is around 4.71%, more than SWPPX's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWMRX Schwab Target 2045 Fund	4.71%	5.18%	3.14%	2.98%	7.88%	5.18%	2.45%	5.46%	6.63%	2.79%	5.28%	5.76%
SWPPX Schwab S&P 500 Index Fund	1.01%	1.11%	1.23%	1.43%	1.67%	1.27%	1.81%	1.95%	2.67%	1.79%	2.55%	3.17%

Frequently Asked Questions

Can I hold both SWMRX and SWPPX in my portfolio?

With a correlation of 0.95, SWMRX and SWPPX 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.

Which is riskier, SWMRX or SWPPX?

SWPPX has higher volatility (4.83%) compared to SWMRX (4.52%). In terms of maximum drawdown, SWMRX dropped -30.41% vs SWPPX's -55.06%.

Which has better risk-adjusted returns?

SWPPX currently has the higher Sharpe Ratio (2.16 vs 2.07), 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.