SWYAX vs. SWAGX

Last updated Jun 21, 2026

SWYAX (Schwab Target 2010 Index Fund) and SWAGX (Schwab U.S. Aggregate Bond Index Fund) are both mutual funds - SWYAX is a Target Retirement Date fund managed by Charles Schwab, while SWAGX is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index. Over the past 5 years, SWYAX returned 4.63%/yr vs -0.16%/yr for SWAGX. At a 0.37 correlation, their price movements are largely independent. Both charge a 0.04% expense ratio.

Performance

SWYAX vs. SWAGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2010 Index Fund (SWYAX) and Schwab U.S. Aggregate Bond Index Fund (SWAGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWYAX achieves a 4.56% return, which is significantly higher than SWAGX's 0.38% return.

SWYAX

• 1D: 0.51%
• 1M: 1.03%
• YTD: 4.56%
• 6M: 4.76%
• 1Y: 12.14%
• 3Y*: 9.42%
• 5Y*: 4.63%
• 10Y*: —

SWAGX

• 1D: 0.22%
• 1M: 0.93%
• YTD: 0.38%
• 6M: 0.63%
• 1Y: 4.66%
• 3Y*: 4.01%
• 5Y*: -0.16%
• 10Y*: —

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

SWYAX vs. SWAGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWYAX Schwab Target 2010 Index Fund	4.56%	11.17%	7.18%	11.95%	-13.28%	6.99%	10.61%	14.55%	-2.27%	6.88%
SWAGX Schwab U.S. Aggregate Bond Index Fund	0.38%	7.11%	1.38%	5.46%	-13.62%	-2.29%	7.39%	8.64%	-0.11%	2.62%

Correlation

The correlation between SWYAX and SWAGX is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (All Time) Calculated using the full available price history since Feb 23, 2017	0.37

Over the past year, SWYAX and SWAGX have become more correlated (0.62) than their long-term average of 0.37, meaning their price movements have been converging.

Return for Risk

SWYAX vs. SWAGX — Risk / Return Rank

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

SWYAX

SWYAX Risk / Return Rank: 72
SWYAX Sharpe Ratio Rank: 71
SWYAX Sortino Ratio Rank: 73
SWYAX Omega Ratio Rank: 75
SWYAX Calmar Ratio Rank: 66
SWYAX Martin Ratio Rank: 76

SWAGX

SWAGX Risk / Return Rank: 22
SWAGX Sharpe Ratio Rank: 22
SWAGX Sortino Ratio Rank: 24
SWAGX Omega Ratio Rank: 20
SWAGX Calmar Ratio Rank: 22
SWAGX Martin Ratio Rank: 19

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.

SWYAX vs. SWAGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2010 Index Fund (SWYAX) and Schwab U.S. Aggregate Bond Index Fund (SWAGX). 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.

	SWYAX	SWAGX	Difference
Sharpe ratio: Return per unit of total volatility	2.22	1.21	+1.01
Sortino ratio: Return per unit of downside risk	3.19	1.84	+1.35
Omega ratio: Gain probability vs. loss probability	1.43	1.21	+0.22
Calmar ratio: Return relative to maximum drawdown	2.91	1.57	+1.34
Martin ratio: Return relative to average drawdown	12.94	4.48	+8.46

SWYAX vs. SWAGX - Sharpe Ratio Comparison

The current SWYAX Sharpe Ratio is 2.22, which is higher than the SWAGX Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of SWYAX and SWAGX, 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

SWYAX vs. SWAGX - Drawdown Comparison

The maximum SWYAX drawdown since its inception was -19.82%, roughly equal to the maximum SWAGX drawdown of -19.68%. Use the drawdown chart below to compare losses from any high point for SWYAX and SWAGX.

Drawdown Indicators

	SWYAX	SWAGX	Difference
Max Drawdown Largest peak-to-trough decline	-19.82%	-19.68%	-0.14%
Max Drawdown (1Y) Largest decline over 1 year	-4.16%	-3.05%	-1.11%
Max Drawdown (3Y) Largest decline over 3 years	-6.50%	-6.14%	-0.36%
Max Drawdown (5Y) Largest decline over 5 years	-19.82%	-18.76%	-1.06%
Current Drawdown Current decline from peak	-0.15%	-3.38%	+3.23%
Average Drawdown Average peak-to-trough decline	-3.34%	-5.67%	+2.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	1.07%	-0.14%

Volatility

SWYAX vs. SWAGX - Volatility Comparison

Schwab Target 2010 Index Fund (SWYAX) has a higher volatility of 2.24% compared to Schwab U.S. Aggregate Bond Index Fund (SWAGX) at 1.14%. This indicates that SWYAX's price experiences larger fluctuations and is considered to be riskier than SWAGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYAX	SWAGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.24%	1.14%	+1.10%
Volatility (6M) Calculated over the trailing 6-month period	4.51%	2.94%	+1.57%
Volatility (1Y) Calculated over the trailing 1-year period	5.46%	3.95%	+1.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.82%	6.09%	+1.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.45%	5.11%	+2.34%

SWYAX vs. SWAGX - Expense Ratio Comparison

Both SWYAX and SWAGX have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SWYAX vs. SWAGX - Dividend Comparison

SWYAX's dividend yield for the trailing twelve months is around 3.99%, less than SWAGX's 4.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
SWAGX Schwab U.S. Aggregate Bond Index Fund	4.13%	4.02%	3.88%	3.22%	1.93%	1.56%	2.47%	2.87%	2.80%	1.98%	0.00%
SWYAX Schwab Target 2010 Index Fund	3.99%	4.17%	3.79%	2.85%	2.69%	2.54%	1.98%	2.27%	2.01%	1.18%	0.75%

Frequently Asked Questions

Can I hold both SWYAX and SWAGX in my portfolio?

SWYAX and SWAGX have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWYAX or SWAGX?

SWYAX has higher volatility (2.24%) compared to SWAGX (1.14%). In terms of maximum drawdown, SWYAX dropped -19.82% vs SWAGX's -19.68%.

Which has better risk-adjusted returns?

SWYAX currently has the higher Sharpe Ratio (2.22 vs 1.21), 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.