SWYGX vs. VEIRX

Last updated Jun 5, 2026

SWYGX (Schwab Target 2040 Index Fund) and VEIRX (Vanguard Equity Income Fund Admiral Shares) are both mutual funds - SWYGX is a Target Retirement Date fund managed by Charles Schwab, while VEIRX is a Large Cap Value Equities fund actively managed by Vanguard. Over the past 5 years, SWYGX returned 8.74%/yr vs 10.91%/yr for VEIRX. Their correlation of 0.83 suggests significant overlap in exposure. SWYGX charges 0.04%/yr vs 0.19%/yr for VEIRX.

Performance

SWYGX vs. VEIRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2040 Index Fund (SWYGX) and Vanguard Equity Income Fund Admiral Shares (VEIRX). 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 higher than VEIRX's 9.19% return.

SWYGX

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

VEIRX

• 1D: -0.49%
• 1M: 1.89%
• YTD: 9.19%
• 6M: 9.37%
• 1Y: 23.25%
• 3Y*: 17.43%
• 5Y*: 10.91%
• 10Y*: 11.90%

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

SWYGX vs. VEIRX - 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%
VEIRX Vanguard Equity Income Fund Admiral Shares	9.19%	17.25%	14.91%	7.76%	-0.08%	25.49%	3.08%	25.34%	-5.68%	17.68%

Correlation

The correlation between SWYGX and VEIRX is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Aug 31, 2016	0.83

The correlation between SWYGX and VEIRX shifts across timeframes, from 0.73 (1 year) to 0.83 (all time), reflecting how their relationship changes across market environments.

SWYGX vs. VEIRX - Sectors Allocation Comparison

Sectors	SWYGX	VEIRX
Technology	27.1%	13.0%
Financial Services	15.0%	20.5%
Industrials	11.2%	10.6%
Consumer Cyclical	8.9%	6.0%
Healthcare	7.8%	14.8%
Communication Services	7.7%	2.9%
Real Estate	7.6%	1.9%
Consumer Defensive	4.6%	9.4%
Energy	4.0%	8.3%
Basic Materials	3.6%	3.4%
Utilities	2.5%	7.0%

Return for Risk

SWYGX vs. VEIRX — 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

VEIRX

VEIRX Risk / Return Rank: 60
VEIRX Sharpe Ratio Rank: 57
VEIRX Sortino Ratio Rank: 57
VEIRX Omega Ratio Rank: 54
VEIRX Calmar Ratio Rank: 70
VEIRX Martin Ratio Rank: 61

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. VEIRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Index Fund (SWYGX) and Vanguard Equity Income Fund Admiral Shares (VEIRX). 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	VEIRX	Difference
Sharpe ratio: Return per unit of total volatility	2.35	2.25	+0.10
Sortino ratio: Return per unit of downside risk	3.31	3.20	+0.11
Omega ratio: Gain probability vs. loss probability	1.43	1.41	+0.02
Calmar ratio: Return relative to maximum drawdown	3.08	3.23	-0.15
Martin ratio: Return relative to average drawdown	13.78	12.06	+1.71
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. VEIRX - Sharpe Ratio Comparison

The current SWYGX Sharpe Ratio is 2.35, which is comparable to the VEIRX Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of SWYGX and VEIRX, 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	VEIRX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.35	2.25	+0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.67	0.79	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.73	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.51	+0.24

Drawdowns

SWYGX vs. VEIRX - Drawdown Comparison

The maximum SWYGX drawdown since its inception was -27.62%, smaller than the maximum VEIRX drawdown of -54.02%. Use the drawdown chart below to compare losses from any high point for SWYGX and VEIRX.

Drawdown Indicators

	SWYGX	VEIRX	Difference
Max Drawdown Largest peak-to-trough decline	-27.62%	-54.02%	+26.40%
Max Drawdown (1Y) Largest decline over 1 year	-7.50%	-7.13%	-0.37%
Max Drawdown (3Y) Largest decline over 3 years	-12.96%	-13.36%	+0.40%
Max Drawdown (5Y) Largest decline over 5 years	-24.07%	-15.12%	-8.95%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.26%	—
Current Drawdown Current decline from peak	-0.58%	-0.49%	-0.09%
Average Drawdown Average peak-to-trough decline	-4.17%	-6.50%	+2.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.67%	1.91%	-0.24%

Volatility

SWYGX vs. VEIRX - Volatility Comparison

Schwab Target 2040 Index Fund (SWYGX) has a higher volatility of 3.07% compared to Vanguard Equity Income Fund Admiral Shares (VEIRX) at 2.70%. This indicates that SWYGX's price experiences larger fluctuations and is considered to be riskier than VEIRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYGX	VEIRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.07%	2.70%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	7.81%	7.62%	+0.19%
Volatility (1Y) Calculated over the trailing 1-year period	9.82%	10.27%	-0.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.18%	13.92%	-0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.02%	16.30%	-2.28%

SWYGX vs. VEIRX - Expense Ratio Comparison

SWYGX has a 0.04% expense ratio, which is lower than VEIRX's 0.19% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SWYGX vs. VEIRX - Dividend Comparison

SWYGX's dividend yield for the trailing twelve months is around 2.03%, less than VEIRX's 10.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VEIRX Vanguard Equity Income Fund Admiral Shares	10.17%	11.03%	9.83%	7.96%	8.79%	7.71%	2.86%	4.45%	10.98%	3.04%	3.87%	6.48%

Frequently Asked Questions

Can I hold both SWYGX and VEIRX in my portfolio?

SWYGX and VEIRX have a correlation of 0.73, 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 VEIRX?

SWYGX has higher volatility (3.07%) compared to VEIRX (2.70%). In terms of maximum drawdown, SWYGX dropped -27.62% vs VEIRX's -54.02%.

Which has better risk-adjusted returns?

SWYGX currently has the higher Sharpe Ratio (2.35 vs 2.25), 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.