SWYGX vs. SWSSX

Last updated Jun 5, 2026

SWYGX (Schwab Target 2040 Index Fund) and SWSSX (Schwab Small-Cap Index Fund-Select Shares) are both mutual funds - SWYGX is a Target Retirement Date fund managed by Charles Schwab, while SWSSX is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Over the past 5 years, SWYGX returned 8.74%/yr vs 6.31%/yr for SWSSX. Their correlation of 0.85 suggests significant overlap in exposure. Both charge a 0.04% expense ratio.

Performance

SWYGX vs. SWSSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2040 Index Fund (SWYGX) and Schwab Small-Cap Index Fund-Select Shares (SWSSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWYGX achieves a 9.73% return, which is significantly lower than SWSSX's 17.15% return.

SWYGX

• 1D: -0.58%
• 1M: 2.89%
• YTD: 9.73%
• 6M: 10.08%
• 1Y: 22.70%
• 3Y*: 16.95%
• 5Y*: 8.74%
• 10Y*: —

SWSSX

• 1D: -1.31%
• 1M: 1.83%
• YTD: 17.15%
• 6M: 15.02%
• 1Y: 39.68%
• 3Y*: 18.17%
• 5Y*: 6.31%
• 10Y*: 11.06%

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

SWYGX vs. SWSSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWYGX Schwab Target 2040 Index Fund	9.73%	17.57%	12.83%	19.45%	-16.94%	15.68%	14.19%	23.63%	-6.62%	19.12%
SWSSX Schwab Small-Cap Index Fund-Select Shares	17.15%	12.88%	11.57%	17.07%	-20.43%	14.77%	20.12%	25.63%	-11.19%	14.76%

Correlation

The correlation between SWYGX and SWSSX is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Aug 31, 2016	0.85

The correlation between SWYGX and SWSSX has been stable across timeframes, ranging from 0.84 to 0.86 - a consistent structural relationship.

SWYGX vs. SWSSX - Sectors Allocation Comparison

Sectors	SWYGX	SWSSX
Technology	27.1%	17.0%
Financial Services	15.0%	15.8%
Industrials	11.2%	17.7%
Consumer Cyclical	8.9%	8.4%
Healthcare	7.8%	16.5%
Communication Services	7.7%	2.4%
Real Estate	7.6%	6.1%
Consumer Defensive	4.6%	2.4%
Energy	4.0%	6.1%
Basic Materials	3.6%	4.8%
Utilities	2.5%	2.9%

Return for Risk

SWYGX vs. SWSSX — Risk / Return Rank

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

SWYGX

SWYGX Risk / Return Rank: 64
SWYGX Sharpe Ratio Rank: 63
SWYGX Sortino Ratio Rank: 62
SWYGX Omega Ratio Rank: 60
SWYGX Calmar Ratio Rank: 63
SWYGX Martin Ratio Rank: 73

SWSSX

SWSSX Risk / Return Rank: 56
SWSSX Sharpe Ratio Rank: 49
SWSSX Sortino Ratio Rank: 46
SWSSX Omega Ratio Rank: 40
SWSSX Calmar Ratio Rank: 79
SWSSX Martin Ratio Rank: 66

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. SWSSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Index Fund (SWYGX) and Schwab Small-Cap Index Fund-Select Shares (SWSSX). 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	SWSSX	Difference
Sharpe ratio: Return per unit of total volatility	2.35	2.07	+0.28
Sortino ratio: Return per unit of downside risk	3.31	2.88	+0.43
Omega ratio: Gain probability vs. loss probability	1.43	1.34	+0.09
Calmar ratio: Return relative to maximum drawdown	3.08	3.60	-0.52
Martin ratio: Return relative to average drawdown	13.78	12.77	+1.01
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. SWSSX - Sharpe Ratio Comparison

The current SWYGX Sharpe Ratio is 2.35, which is comparable to the SWSSX Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of SWYGX and SWSSX, 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	SWSSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.35	2.07	+0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.67	0.28	+0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.46	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.36	+0.40

Drawdowns

SWYGX vs. SWSSX - Drawdown Comparison

The maximum SWYGX drawdown since its inception was -27.62%, smaller than the maximum SWSSX drawdown of -60.34%. Use the drawdown chart below to compare losses from any high point for SWYGX and SWSSX.

Drawdown Indicators

	SWYGX	SWSSX	Difference
Max Drawdown Largest peak-to-trough decline	-27.62%	-60.34%	+32.72%
Max Drawdown (1Y) Largest decline over 1 year	-7.50%	-11.00%	+3.50%
Max Drawdown (3Y) Largest decline over 3 years	-12.96%	-27.50%	+14.54%
Max Drawdown (5Y) Largest decline over 5 years	-24.07%	-31.93%	+7.86%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.81%	—
Current Drawdown Current decline from peak	-0.58%	-1.44%	+0.86%
Average Drawdown Average peak-to-trough decline	-4.17%	-10.72%	+6.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.67%	3.09%	-1.42%

Volatility

SWYGX vs. SWSSX - Volatility Comparison

The current volatility for Schwab Target 2040 Index Fund (SWYGX) is 3.07%, while Schwab Small-Cap Index Fund-Select Shares (SWSSX) has a volatility of 5.76%. This indicates that SWYGX experiences smaller price fluctuations and is considered to be less risky than SWSSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYGX	SWSSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.07%	5.76%	-2.69%
Volatility (6M) Calculated over the trailing 6-month period	7.81%	13.61%	-5.80%
Volatility (1Y) Calculated over the trailing 1-year period	9.82%	19.21%	-9.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.18%	22.60%	-9.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.02%	24.09%	-10.07%

SWYGX vs. SWSSX - Expense Ratio Comparison

Both SWYGX and SWSSX 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

SWYGX vs. SWSSX - Dividend Comparison

SWYGX's dividend yield for the trailing twelve months is around 2.03%, more than SWSSX's 1.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWSSX Schwab Small-Cap Index Fund-Select Shares	1.10%	1.29%	1.66%	1.49%	1.32%	8.88%	2.55%	6.12%	10.45%	5.22%	4.10%	6.92%
SWYGX Schwab Target 2040 Index Fund	2.03%	2.23%	2.28%	2.06%	2.03%	1.80%	1.72%	1.95%	2.21%	1.44%	1.13%	0.00%

Frequently Asked Questions

Can I hold both SWYGX and SWSSX in my portfolio?

SWYGX and SWSSX have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SWYGX or SWSSX?

SWSSX has higher volatility (5.76%) compared to SWYGX (3.07%). In terms of maximum drawdown, SWYGX dropped -27.62% vs SWSSX's -60.34%.

Which has better risk-adjusted returns?

SWYGX currently has the higher Sharpe Ratio (2.35 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.