SWYFX vs. SCHZ

Last updated Jun 16, 2026

SWYFX (Schwab Target 2035 Index Fund) and SCHZ (Schwab U.S. Aggregate Bond ETF) are both funds - SWYFX is a Target Retirement Date fund managed by Charles Schwab, while SCHZ is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index. Over the past 5 years, SWYFX returned 7.74%/yr vs 0.14%/yr for SCHZ. At a 0.18 correlation, their price movements are largely independent. SWYFX charges 0.04%/yr vs 0.03%/yr for SCHZ.

Performance

SWYFX vs. SCHZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2035 Index Fund (SWYFX) and Schwab U.S. Aggregate Bond ETF (SCHZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWYFX achieves a 8.10% return, which is significantly higher than SCHZ's 0.60% return.

SWYFX

• 1D: 0.29%
• 1M: 1.68%
• YTD: 8.10%
• 6M: 8.55%
• 1Y: 19.87%
• 3Y*: 14.85%
• 5Y*: 7.74%
• 10Y*: —

SCHZ

• 1D: 0.09%
• 1M: 1.14%
• YTD: 0.60%
• 6M: 0.93%
• 1Y: 4.97%
• 3Y*: 4.02%
• 5Y*: 0.14%
• 10Y*: 1.50%

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

SWYFX vs. SCHZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWYFX Schwab Target 2035 Index Fund	8.10%	16.40%	11.71%	18.20%	-16.36%	14.26%	13.85%	22.37%	-7.99%	17.84%
SCHZ Schwab U.S. Aggregate Bond ETF	0.60%	7.24%	1.26%	5.60%	-13.17%	-1.72%	7.46%	8.65%	-0.26%	3.50%

Correlation

The correlation between SWYFX and SCHZ is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (All Time) Calculated using the full available price history since Aug 30, 2016	0.18

Over the past year, SWYFX and SCHZ have become more correlated (0.46) than their long-term average of 0.18, meaning their price movements have been converging.

Return for Risk

SWYFX vs. SCHZ — Risk / Return Rank

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

SWYFX

SWYFX Risk / Return Rank: 67
SWYFX Sharpe Ratio Rank: 66
SWYFX Sortino Ratio Rank: 65
SWYFX Omega Ratio Rank: 64
SWYFX Calmar Ratio Rank: 66
SWYFX Martin Ratio Rank: 75

SCHZ

SCHZ Risk / Return Rank: 41
SCHZ Sharpe Ratio Rank: 42
SCHZ Sortino Ratio Rank: 44
SCHZ Omega Ratio Rank: 39
SCHZ Calmar Ratio Rank: 41
SCHZ Martin Ratio Rank: 38

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.

SWYFX vs. SCHZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2035 Index Fund (SWYFX) and Schwab U.S. Aggregate Bond ETF (SCHZ). 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.

	SWYFX	SCHZ	Difference
Sharpe ratio: Return per unit of total volatility	2.02	1.34	+0.69
Sortino ratio: Return per unit of downside risk	2.84	2.01	+0.83
Omega ratio: Gain probability vs. loss probability	1.37	1.24	+0.14
Calmar ratio: Return relative to maximum drawdown	2.76	1.85	+0.91
Martin ratio: Return relative to average drawdown	12.09	5.42	+6.67

SWYFX vs. SCHZ - Sharpe Ratio Comparison

The current SWYFX Sharpe Ratio is 2.02, which is higher than the SCHZ Sharpe Ratio of 1.34. The chart below compares the historical Sharpe Ratios of SWYFX and SCHZ, 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

SWYFX vs. SCHZ - Drawdown Comparison

The maximum SWYFX drawdown since its inception was -25.51%, which is greater than SCHZ's maximum drawdown of -18.74%. Use the drawdown chart below to compare losses from any high point for SWYFX and SCHZ.

Drawdown Indicators

	SWYFX	SCHZ	Difference
Max Drawdown Largest peak-to-trough decline	-25.51%	-18.74%	-6.77%
Max Drawdown (1Y) Largest decline over 1 year	-6.82%	-2.70%	-4.12%
Max Drawdown (3Y) Largest decline over 3 years	-11.61%	-6.18%	-5.43%
Max Drawdown (5Y) Largest decline over 5 years	-23.19%	-18.01%	-5.18%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.74%	—
Current Drawdown Current decline from peak	-1.01%	-2.17%	+1.16%
Average Drawdown Average peak-to-trough decline	-4.00%	-3.68%	-0.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.56%	0.92%	+0.64%

Volatility

SWYFX vs. SCHZ - Volatility Comparison

Schwab Target 2035 Index Fund (SWYFX) has a higher volatility of 3.70% compared to Schwab U.S. Aggregate Bond ETF (SCHZ) at 1.33%. This indicates that SWYFX's price experiences larger fluctuations and is considered to be riskier than SCHZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYFX	SCHZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.70%	1.33%	+2.37%
Volatility (6M) Calculated over the trailing 6-month period	7.59%	2.76%	+4.83%
Volatility (1Y) Calculated over the trailing 1-year period	9.30%	3.74%	+5.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.13%	6.09%	+6.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.85%	5.42%	+7.43%

SWYFX vs. SCHZ - Expense Ratio Comparison

SWYFX has a 0.04% expense ratio, which is higher than SCHZ's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SWYFX vs. SCHZ - Dividend Comparison

SWYFX's dividend yield for the trailing twelve months is around 2.11%, less than SCHZ's 4.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHZ Schwab U.S. Aggregate Bond ETF	4.11%	4.05%	3.96%	3.28%	2.63%	2.16%	2.43%	2.79%	2.56%	2.40%	2.24%	2.11%
SWYFX Schwab Target 2035 Index Fund	2.11%	2.28%	2.37%	2.14%	2.02%	1.80%	1.73%	2.00%	0.00%	1.44%	0.99%	0.00%

Frequently Asked Questions

Can I hold both SWYFX and SCHZ in my portfolio?

SWYFX and SCHZ have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWYFX or SCHZ?

SWYFX has higher volatility (3.70%) compared to SCHZ (1.33%). In terms of maximum drawdown, SWYFX dropped -25.51% vs SCHZ's -18.74%.

Which has better risk-adjusted returns?

SWYFX currently has the higher Sharpe Ratio (2.02 vs 1.34), 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.