SWTSX vs. VEA

Last updated Jun 4, 2026

SWTSX (Schwab Total Stock Market Index Fund) and VEA (Vanguard FTSE Developed Markets ETF) are both funds - SWTSX is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Total Stock Market Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, SWTSX returned 15.07%/yr vs 10.17%/yr for VEA. Their correlation of 0.83 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.

Performance

SWTSX vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Total Stock Market Index Fund (SWTSX) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWTSX achieves a 12.02% return, which is significantly lower than VEA's 14.92% return. Over the past 10 years, SWTSX has outperformed VEA with an annualized return of 15.07%, while VEA has yielded a comparatively lower 10.17% annualized return.

SWTSX

• 1D: 0.22%
• 1M: 5.76%
• YTD: 12.02%
• 6M: 11.94%
• 1Y: 29.06%
• 3Y*: 22.36%
• 5Y*: 13.04%
• 10Y*: 15.07%

VEA

• 1D: -0.90%
• 1M: 5.54%
• YTD: 14.92%
• 6M: 18.15%
• 1Y: 32.48%
• 3Y*: 19.77%
• 5Y*: 9.60%
• 10Y*: 10.17%

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

SWTSX vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWTSX Schwab Total Stock Market Index Fund	12.02%	17.04%	23.84%	26.05%	-19.54%	25.65%	20.71%	30.90%	-5.35%	21.08%
VEA Vanguard FTSE Developed Markets ETF	14.92%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between SWTSX and VEA is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Jul 27, 2007	0.83

The correlation between SWTSX and VEA has been stable across timeframes, ranging from 0.76 to 0.83 - a consistent structural relationship.

SWTSX vs. VEA - Sectors Allocation Comparison

Sectors	SWTSX	VEA
Technology	33.8%	13.8%
Financial Services	12.1%	23.3%
Communication Services	10.3%	3.4%
Consumer Cyclical	10.1%	7.5%
Industrials	9.6%	19.2%
Healthcare	9.1%	8.2%
Consumer Defensive	4.7%	5.6%
Energy	3.7%	5.4%
Real Estate	2.4%	2.7%
Utilities	2.3%	3.3%
Basic Materials	2.1%	7.5%

Return for Risk

SWTSX vs. VEA — Risk / Return Rank

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

SWTSX

SWTSX Risk / Return Rank: 71
SWTSX Sharpe Ratio Rank: 71
SWTSX Sortino Ratio Rank: 63
SWTSX Omega Ratio Rank: 63
SWTSX Calmar Ratio Rank: 75
SWTSX Martin Ratio Rank: 82

VEA

VEA Risk / Return Rank: 59
VEA Sharpe Ratio Rank: 60
VEA Sortino Ratio Rank: 60
VEA Omega Ratio Rank: 60
VEA Calmar Ratio Rank: 55
VEA Martin Ratio Rank: 60

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.

SWTSX vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Total Stock Market Index Fund (SWTSX) and Vanguard FTSE Developed Markets ETF (VEA). 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.

	SWTSX	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.09	+0.37
Sortino ratio: Return per unit of downside risk	3.33	2.87	+0.46
Omega ratio: Gain probability vs. loss probability	1.44	1.38	+0.07
Calmar ratio: Return relative to maximum drawdown	3.38	2.81	+0.58
Martin ratio: Return relative to average drawdown	15.52	10.94	+4.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWTSX vs. VEA - Sharpe Ratio Comparison

The current SWTSX Sharpe Ratio is 2.45, which is comparable to the VEA Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of SWTSX and VEA, 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

	SWTSX	VEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	2.09	+0.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.58	+0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.59	+0.23
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.25	+0.19

Drawdowns

SWTSX vs. VEA - Drawdown Comparison

The maximum SWTSX drawdown since its inception was -54.60%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for SWTSX and VEA.

Drawdown Indicators

	SWTSX	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-54.60%	-60.68%	+6.08%
Max Drawdown (1Y) Largest decline over 1 year	-8.88%	-11.63%	+2.75%
Max Drawdown (3Y) Largest decline over 3 years	-19.43%	-13.45%	-5.98%
Max Drawdown (5Y) Largest decline over 5 years	-25.40%	-29.71%	+4.31%
Max Drawdown (10Y) Largest decline over 10 years	-35.01%	-35.73%	+0.72%
Current Drawdown Current decline from peak	0.00%	-0.90%	+0.90%
Average Drawdown Average peak-to-trough decline	-10.57%	-13.29%	+2.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.93%	2.98%	-1.05%

Volatility

SWTSX vs. VEA - Volatility Comparison

The current volatility for Schwab Total Stock Market Index Fund (SWTSX) is 2.96%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 5.66%. This indicates that SWTSX experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWTSX	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.96%	5.66%	-2.70%
Volatility (6M) Calculated over the trailing 6-month period	9.21%	13.32%	-4.11%
Volatility (1Y) Calculated over the trailing 1-year period	12.26%	15.66%	-3.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	16.55%	+0.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.61%	17.36%	+1.25%

SWTSX vs. VEA - Expense Ratio Comparison

Both SWTSX and VEA have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SWTSX vs. VEA - Dividend Comparison

SWTSX's dividend yield for the trailing twelve months is around 0.98%, less than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWTSX Schwab Total Stock Market Index Fund	0.98%	1.10%	1.24%	1.41%	1.62%	1.46%	1.63%	1.92%	2.58%	1.83%	2.32%	2.79%
VEA Vanguard FTSE Developed Markets ETF	2.62%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both SWTSX and VEA in my portfolio?

SWTSX and VEA have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWTSX or VEA?

VEA has higher volatility (5.66%) compared to SWTSX (2.96%). In terms of maximum drawdown, SWTSX dropped -54.60% vs VEA's -60.68%.

Which has better risk-adjusted returns?

SWTSX currently has the higher Sharpe Ratio (2.45 vs 2.09), 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.