SWYGX vs. VWIAX

Last updated Aug 2, 2026

SWYGX (Schwab Target 2040 Index Fund) and VWIAX (Vanguard Wellesley Income Fund Admiral Shares) are both mutual funds - SWYGX is a Target Retirement Date fund tracking the Target 2040 Passive Composite Index, while VWIAX is a Diversified Portfolio fund actively managed by Vanguard. SWYGX is passively managed, while VWIAX is actively managed. Over the past 5 years, SWYGX returned 8.29%/yr vs 3.92%/yr for VWIAX. Their 0.74 correlation means they have sometimes moved together and sometimes differently. SWYGX charges 0.08%/yr vs 0.16%/yr for VWIAX.

Performance

SWYGX vs. VWIAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2040 Index Fund (SWYGX) and Vanguard Wellesley Income Fund Admiral Shares (VWIAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWYGX achieves a 9.09% return, which is significantly higher than VWIAX's 3.71% return.

SWYGX

• 1D: 1.43%
• 1M: -0.45%
• 6M: 6.60%
• YTD: 9.09%
• 1Y: 18.57%
• 3Y*: 14.68%
• 5Y*: 8.29%
• 10Y*: —
• ALL TIME*: 10.32%

VWIAX

• 1D: 0.06%
• 1M: -0.06%
• 6M: 2.25%
• YTD: 3.71%
• 1Y: 8.97%
• 3Y*: 7.97%
• 5Y*: 3.92%
• 10Y*: 5.63%
• ALL TIME*: 6.25%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SWYGX Schwab Target 2040 Index Fund	$0.00	$0.00	$0.00
VWIAX Vanguard Wellesley Income Fund Admiral Shares	$0.00	$0.00	$0.00

SWYGX vs. VWIAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWYGX Schwab Target 2040 Index Fund	9.09%	17.57%	12.83%	19.45%	-16.94%	15.68%	14.19%	23.63%	-6.62%	19.12%
VWIAX Vanguard Wellesley Income Fund Admiral Shares	3.71%	11.08%	5.92%	7.07%	-9.04%	8.55%	8.52%	16.47%	-2.49%	9.37%

Correlation

The correlation between SWYGX and VWIAX is 0.69, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.69
Correlation (3Y) Balances recent behavior with more history.	0.72
Correlation (5Y) Shows whether the relationship held over a longer period.	0.75
Correlation (All Time) Calculated using the full available price history since Aug 30, 2016	0.75

The correlation between SWYGX and VWIAX has been stable across timeframes, ranging from 0.69 to 0.75 - a consistent structural relationship.

Return for Risk

SWYGX vs. VWIAX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SWYGX

SWYGX Risk / Return Rank: 73
SWYGX Sharpe Ratio Rank: 71
SWYGX Sortino Ratio Rank: 69
SWYGX Omega Ratio Rank: 69
SWYGX Calmar Ratio Rank: 72
SWYGX Martin Ratio Rank: 82

VWIAX

VWIAX Risk / Return Rank: 70
VWIAX Sharpe Ratio Rank: 74
VWIAX Sortino Ratio Rank: 74
VWIAX Omega Ratio Rank: 72
VWIAX Calmar Ratio Rank: 66
VWIAX Martin Ratio Rank: 65

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SWYGX vs. VWIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Index Fund (SWYGX) and Vanguard Wellesley Income Fund Admiral Shares (VWIAX). 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.

	SWYGX	VWIAX	Difference
Sharpe ratio: Return per unit of total volatility	1.62	1.69	-0.06
Sortino ratio: Return per unit of downside risk	2.30	2.44	-0.14
Omega ratio: Gain probability vs. loss probability	1.29	1.30	-0.01
Calmar ratio: Return relative to maximum drawdown	2.30	2.09	+0.20
Martin ratio: Return relative to average drawdown	9.90	7.89	+2.01

SWYGX vs. VWIAX - Sharpe Ratio Comparison

The current SWYGX Sharpe Ratio is 1.62, which is comparable to the VWIAX Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of SWYGX and VWIAX, 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

SWYGX vs. VWIAX - Drawdown Comparison

The maximum SWYGX drawdown since its inception was -27.62%, which is greater than VWIAX's maximum drawdown of -21.64%. Use the drawdown chart below to compare losses from any high point for SWYGX and VWIAX.

Drawdown Indicators

	SWYGX	VWIAX	Difference
Max Drawdown Largest peak-to-trough decline	-27.62%	-21.64%	-5.98%
Max Drawdown (1Y) Largest decline over 1 year	-7.50%	-4.15%	-3.35%
Max Drawdown (3Y) Largest decline over 3 years	-12.96%	-5.78%	-7.18%
Max Drawdown (5Y) Largest decline over 5 years	-24.07%	-15.26%	-8.81%
Max Drawdown (10Y) Largest decline over 10 years	—	-17.41%	—
Current Drawdown Current decline from peak	-1.17%	-0.60%	-0.57%
Average Drawdown Average peak-to-trough decline	-4.12%	-2.21%	-1.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.74%	1.10%	+0.64%

Volatility

SWYGX vs. VWIAX - Volatility Comparison

Schwab Target 2040 Index Fund (SWYGX) has a higher volatility of 2.90% compared to Vanguard Wellesley Income Fund Admiral Shares (VWIAX) at 1.37%. This indicates that SWYGX's price experiences larger fluctuations and is considered to be riskier than VWIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYGX	VWIAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.90%	1.37%	+1.53%
Volatility (6M) Calculated over the trailing 6-month period	8.79%	3.95%	+4.84%
Volatility (1Y) Calculated over the trailing 1-year period	10.62%	5.17%	+5.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.28%	7.00%	+6.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.00%	6.93%	+7.07%

SWYGX vs. VWIAX - Expense Ratio Comparison

SWYGX has a 0.08% expense ratio, which is lower than VWIAX's 0.16% 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. VWIAX - Dividend Comparison

SWYGX's dividend yield for the trailing twelve months is around 2.04%, less than VWIAX's 7.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWYGX Schwab Target 2040 Index Fund	2.04%	2.23%	2.28%	2.06%	2.03%	1.80%	1.72%	1.95%	2.21%	1.44%	1.13%	0.00%
VWIAX Vanguard Wellesley Income Fund Admiral Shares	7.83%	7.93%	6.69%	4.80%	7.75%	6.11%	4.37%	4.00%	7.64%	3.25%	4.07%	5.66%

Frequently Asked Questions

Can I hold both SWYGX and VWIAX in my portfolio?

SWYGX and VWIAX have a correlation of 0.69, 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 VWIAX?

SWYGX has higher volatility (2.90%) compared to VWIAX (1.37%). In terms of maximum drawdown, SWYGX dropped -27.62% vs VWIAX's -21.64%.

Which has better risk-adjusted returns?

VWIAX currently has the higher Sharpe Ratio (1.69 vs 1.62), 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.