SWYGX vs. PBAMX

Last updated Jun 4, 2026

SWYGX (Schwab Target 2040 Index Fund) and PBAMX (Putnam Retirement Advantage 2040 Fund) are both Target Retirement Date funds. Over the past 5 years, SWYGX returned 9.03%/yr vs 9.87%/yr for PBAMX. With a 0.97 correlation, they move nearly in lockstep. SWYGX charges 0.04%/yr vs 0.45%/yr for PBAMX.

Performance

SWYGX vs. PBAMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2040 Index Fund (SWYGX) and Putnam Retirement Advantage 2040 Fund (PBAMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWYGX achieves a 10.38% return, which is significantly higher than PBAMX's 8.54% return.

SWYGX

• 1D: 0.27%
• 1M: 4.37%
• YTD: 10.38%
• 6M: 10.79%
• 1Y: 23.69%
• 3Y*: 17.18%
• 5Y*: 9.03%
• 10Y*: —

PBAMX

• 1D: 0.33%
• 1M: 3.88%
• YTD: 8.54%
• 6M: 9.31%
• 1Y: 21.60%
• 3Y*: 18.23%
• 5Y*: 9.87%
• 10Y*: —

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

SWYGX vs. PBAMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
SWYGX Schwab Target 2040 Index Fund	10.38%	17.57%	12.83%	19.45%	-16.94%	15.68%	13.41%
PBAMX Putnam Retirement Advantage 2040 Fund	8.54%	16.68%	13.83%	24.49%	-15.93%	16.47%	13.78%

Correlation

The correlation between SWYGX and PBAMX is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jan 3, 2020	0.97

The correlation between SWYGX and PBAMX has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

SWYGX vs. PBAMX — Risk / Return Rank

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

SWYGX

SWYGX Risk / Return Rank: 70
SWYGX Sharpe Ratio Rank: 72
SWYGX Sortino Ratio Rank: 69
SWYGX Omega Ratio Rank: 65
SWYGX Calmar Ratio Rank: 69
SWYGX Martin Ratio Rank: 76

PBAMX

PBAMX Risk / Return Rank: 74
PBAMX Sharpe Ratio Rank: 73
PBAMX Sortino Ratio Rank: 72
PBAMX Omega Ratio Rank: 68
PBAMX Calmar Ratio Rank: 75
PBAMX Martin Ratio Rank: 82

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.

SWYGX vs. PBAMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Index Fund (SWYGX) and Putnam Retirement Advantage 2040 Fund (PBAMX). 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.

	SWYGX	PBAMX	Difference
Sharpe ratio: Return per unit of total volatility	2.46	2.49	-0.03
Sortino ratio: Return per unit of downside risk	3.45	3.52	-0.07
Omega ratio: Gain probability vs. loss probability	1.45	1.46	-0.01
Calmar ratio: Return relative to maximum drawdown	3.21	3.43	-0.22
Martin ratio: Return relative to average drawdown	14.38	15.50	-1.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWYGX vs. PBAMX - Sharpe Ratio Comparison

The current SWYGX Sharpe Ratio is 2.46, which is comparable to the PBAMX Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of SWYGX and PBAMX, 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

	SWYGX	PBAMX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.46	2.49	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.69	0.81	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.78	-0.02

Drawdowns

SWYGX vs. PBAMX - Drawdown Comparison

The maximum SWYGX drawdown since its inception was -27.62%, roughly equal to the maximum PBAMX drawdown of -27.57%. Use the drawdown chart below to compare losses from any high point for SWYGX and PBAMX.

Drawdown Indicators

	SWYGX	PBAMX	Difference
Max Drawdown Largest peak-to-trough decline	-27.62%	-27.57%	-0.05%
Max Drawdown (1Y) Largest decline over 1 year	-7.50%	-6.39%	-1.11%
Max Drawdown (3Y) Largest decline over 3 years	-12.96%	-12.67%	-0.29%
Max Drawdown (5Y) Largest decline over 5 years	-24.07%	-21.81%	-2.26%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.17%	-4.94%	+0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.67%	1.41%	+0.26%

Volatility

SWYGX vs. PBAMX - Volatility Comparison

Schwab Target 2040 Index Fund (SWYGX) has a higher volatility of 3.05% compared to Putnam Retirement Advantage 2040 Fund (PBAMX) at 2.57%. This indicates that SWYGX's price experiences larger fluctuations and is considered to be riskier than PBAMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYGX	PBAMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	2.57%	+0.48%
Volatility (6M) Calculated over the trailing 6-month period	7.80%	6.91%	+0.89%
Volatility (1Y) Calculated over the trailing 1-year period	9.80%	8.80%	+1.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.18%	12.27%	+0.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.02%	14.62%	-0.60%

SWYGX vs. PBAMX - Expense Ratio Comparison

SWYGX has a 0.04% expense ratio, which is lower than PBAMX's 0.45% expense ratio.

Dividends

SWYGX vs. PBAMX - Dividend Comparison

SWYGX's dividend yield for the trailing twelve months is around 2.02%, less than PBAMX's 10.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
PBAMX Putnam Retirement Advantage 2040 Fund	10.61%	11.51%	7.46%	3.34%	12.96%	14.65%	1.74%	0.00%	0.00%	0.00%	0.00%
SWYGX Schwab Target 2040 Index Fund	2.02%	2.23%	2.28%	2.06%	2.03%	1.80%	1.72%	1.95%	2.21%	1.44%	1.13%

Frequently Asked Questions

Can I hold both SWYGX and PBAMX in my portfolio?

With a correlation of 0.98, SWYGX and PBAMX 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, SWYGX or PBAMX?

SWYGX has higher volatility (3.05%) compared to PBAMX (2.57%). In terms of maximum drawdown, SWYGX dropped -27.62% vs PBAMX's -27.57%.

Which has better risk-adjusted returns?

PBAMX currently has the higher Sharpe Ratio (2.49 vs 2.46), 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.