SWMRX vs. VFORX
SWMRX (Schwab Target 2045 Fund) and VFORX (Vanguard Target Retirement 2040 Fund) are both Target Retirement Date funds. Over the past 10 years, SWMRX returned 10.79%/yr vs 10.68%/yr for VFORX. With a 0.98 correlation, they move nearly in lockstep. SWMRX charges 0.00%/yr vs 0.08%/yr for VFORX.
Performance
SWMRX vs. VFORX - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with SWMRX having a 9.87% return and VFORX slightly lower at 9.67%. Both investments have delivered pretty close results over the past 10 years, with SWMRX having a 10.79% annualized return and VFORX not far behind at 10.68%.
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%
VFORX
- 1D
- 0.96%
- 1M
- 1.56%
- YTD
- 9.67%
- 6M
- 9.59%
- 1Y
- 23.37%
- 3Y*
- 16.19%
- 5Y*
- 8.91%
- 10Y*
- 10.68%
SWMRX vs. VFORX - 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% |
VFORX Vanguard Target Retirement 2040 Fund | 9.67% | 18.77% | 12.90% | 18.56% | -17.00% | 14.55% | 15.48% | 23.86% | -7.32% | 18.45% |
Correlation
The correlation between SWMRX and VFORX is 0.99 - 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 | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.97 |
Correlation (All Time) Calculated using the full available price history since Jan 23, 2013 | 0.98 |
The correlation between SWMRX and VFORX has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.
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Return for Risk
SWMRX vs. VFORX — Risk / Return Rank
SWMRX
VFORX
SWMRX vs. VFORX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2045 Fund (SWMRX) 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.
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 | VFORX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.17 | ||
| Sortino ratioReturn per unit of downside risk | -0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.42 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.75 | 2.99 | -0.25 |
| Martin ratioReturn relative to average drawdown | 11.90 | 12.91 | -1.02 |
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Drawdowns
SWMRX vs. VFORX - Drawdown Comparison
The maximum SWMRX drawdown since its inception was -30.41%, smaller than the maximum VFORX drawdown of -51.63%. Use the drawdown chart below to compare losses from any high point for SWMRX and VFORX.
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Drawdown Indicators
| SWMRX | VFORX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.41% | -51.63% | +21.22% |
Max Drawdown (1Y)Largest decline over 1 year | -8.62% | -7.70% | -0.92% |
Max Drawdown (3Y)Largest decline over 3 years | -14.20% | -12.12% | -2.08% |
Max Drawdown (5Y)Largest decline over 5 years | -30.12% | -24.32% | -5.80% |
Max Drawdown (10Y)Largest decline over 10 years | -30.41% | -29.35% | -1.06% |
Current DrawdownCurrent decline from peak | -0.39% | -0.40% | +0.01% |
Average DrawdownAverage peak-to-trough decline | -5.16% | -6.76% | +1.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.99% | 1.78% | +0.21% |
Volatility
SWMRX vs. VFORX - Volatility Comparison
Schwab Target 2045 Fund (SWMRX) has a higher volatility of 4.52% compared to Vanguard Target Retirement 2040 Fund (VFORX) at 4.17%. This indicates that SWMRX's price experiences larger fluctuations and is considered to be riskier than VFORX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SWMRX | VFORX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.52% | 4.17% | +0.35% |
Volatility (6M)Calculated over the trailing 6-month period | 9.39% | 8.57% | +0.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.46% | 10.31% | +1.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.50% | 12.52% | +2.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.54% | 13.71% | +1.83% |
SWMRX vs. VFORX - Expense Ratio Comparison
SWMRX 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%.
Dividends
SWMRX vs. VFORX - Dividend Comparison
SWMRX's dividend yield for the trailing twelve months is around 4.71%, more than VFORX's 2.52% 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% |
VFORX Vanguard Target Retirement 2040 Fund | 2.52% | 2.77% | 2.86% | 2.38% | 2.60% | 20.68% | 2.06% | 2.28% | 2.58% | 0.04% | 2.40% | 2.99% |
Frequently Asked Questions
With a correlation of 0.99, SWMRX and VFORX 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.
SWMRX has higher volatility (4.52%) compared to VFORX (4.17%). In terms of maximum drawdown, SWMRX dropped -30.41% vs VFORX's -51.63%.
VFORX currently has the higher Sharpe Ratio (2.24 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.
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