SWYHX vs. SWERX

Last updated Jun 4, 2026

SWYHX (Schwab Target 2045 Index Fund) and SWERX (Schwab Target 2040 Fund) are both Target Retirement Date funds from Charles Schwab. Over the past 5 years, SWYHX returned 9.68%/yr vs 8.20%/yr for SWERX. With a 0.98 correlation, they move nearly in lockstep. SWYHX charges 0.04%/yr vs 0.00%/yr for SWERX.

Performance

SWYHX vs. SWERX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2045 Index Fund (SWYHX) and Schwab Target 2040 Fund (SWERX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWYHX achieves a 11.33% return, which is significantly higher than SWERX's 9.28% return.

SWYHX

• 1D: 0.30%
• 1M: 4.71%
• YTD: 11.33%
• 6M: 11.84%
• 1Y: 25.55%
• 3Y*: 18.34%
• 5Y*: 9.68%
• 10Y*: —

SWERX

• 1D: 0.19%
• 1M: 3.86%
• YTD: 9.28%
• 6M: 9.85%
• 1Y: 22.49%
• 3Y*: 16.60%
• 5Y*: 8.20%
• 10Y*: 10.19%

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

SWYHX vs. SWERX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWYHX Schwab Target 2045 Index Fund	11.33%	18.65%	13.72%	20.34%	-17.37%	17.04%	14.50%	24.80%	-7.28%	20.07%
SWERX Schwab Target 2040 Fund	9.28%	17.71%	12.74%	19.06%	-18.57%	15.65%	14.44%	23.01%	-9.11%	20.48%

Correlation

The correlation between SWYHX and SWERX is 0.99 - 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	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (All Time) Calculated using the full available price history since Aug 31, 2016	0.98

The correlation between SWYHX and SWERX has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

Return for Risk

SWYHX vs. SWERX — Risk / Return Rank

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

SWYHX

SWYHX Risk / Return Rank: 69
SWYHX Sharpe Ratio Rank: 71
SWYHX Sortino Ratio Rank: 68
SWYHX Omega Ratio Rank: 64
SWYHX Calmar Ratio Rank: 69
SWYHX Martin Ratio Rank: 76

SWERX

SWERX Risk / Return Rank: 59
SWERX Sharpe Ratio Rank: 60
SWERX Sortino Ratio Rank: 58
SWERX Omega Ratio Rank: 57
SWERX Calmar Ratio Rank: 54
SWERX Martin Ratio Rank: 64

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.

SWYHX vs. SWERX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2045 Index Fund (SWYHX) and Schwab Target 2040 Fund (SWERX). 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.

	SWYHX	SWERX	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.28	+0.17
Sortino ratio: Return per unit of downside risk	3.42	3.21	+0.21
Omega ratio: Gain probability vs. loss probability	1.45	1.42	+0.03
Calmar ratio: Return relative to maximum drawdown	3.19	2.82	+0.37
Martin ratio: Return relative to average drawdown	14.32	12.49	+1.83
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWYHX vs. SWERX - Sharpe Ratio Comparison

The current SWYHX Sharpe Ratio is 2.45, which is comparable to the SWERX Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of SWYHX and SWERX, 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

	SWYHX	SWERX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	2.28	+0.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.69	0.55	+0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.69	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	0.53	+0.22

Drawdowns

SWYHX vs. SWERX - Drawdown Comparison

The maximum SWYHX drawdown since its inception was -29.41%, smaller than the maximum SWERX drawdown of -48.24%. Use the drawdown chart below to compare losses from any high point for SWYHX and SWERX.

Drawdown Indicators

	SWYHX	SWERX	Difference
Max Drawdown Largest peak-to-trough decline	-29.41%	-48.24%	+18.83%
Max Drawdown (1Y) Largest decline over 1 year	-8.14%	-8.08%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	-14.14%	-13.05%	-1.09%
Max Drawdown (5Y) Largest decline over 5 years	-24.92%	-30.40%	+5.48%
Max Drawdown (10Y) Largest decline over 10 years	—	-30.40%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.38%	-7.15%	+2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.81%	1.82%	-0.01%

Volatility

SWYHX vs. SWERX - Volatility Comparison

Schwab Target 2045 Index Fund (SWYHX) has a higher volatility of 3.22% compared to Schwab Target 2040 Fund (SWERX) at 2.93%. This indicates that SWYHX's price experiences larger fluctuations and is considered to be riskier than SWERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYHX	SWERX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.22%	2.93%	+0.29%
Volatility (6M) Calculated over the trailing 6-month period	8.41%	7.92%	+0.49%
Volatility (1Y) Calculated over the trailing 1-year period	10.63%	10.00%	+0.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.09%	14.99%	-0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.01%	14.84%	+0.17%

SWYHX vs. SWERX - Expense Ratio Comparison

SWYHX has a 0.04% expense ratio, which is higher than SWERX's 0.00% 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

SWYHX vs. SWERX - Dividend Comparison

SWYHX's dividend yield for the trailing twelve months is around 1.87%, less than SWERX's 6.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWERX Schwab Target 2040 Fund	6.58%	7.19%	5.00%	3.83%	8.31%	6.96%	3.33%	7.69%	8.57%	4.13%	6.76%	10.85%
SWYHX Schwab Target 2045 Index Fund	1.87%	2.08%	2.13%	2.02%	1.98%	1.80%	1.65%	1.96%	2.23%	1.42%	1.05%	0.00%

Frequently Asked Questions

Can I hold both SWYHX and SWERX in my portfolio?

With a correlation of 0.99, SWYHX and SWERX 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, SWYHX or SWERX?

SWYHX has higher volatility (3.22%) compared to SWERX (2.93%). In terms of maximum drawdown, SWYHX dropped -29.41% vs SWERX's -48.24%.

Which has better risk-adjusted returns?

SWYHX currently has the higher Sharpe Ratio (2.45 vs 2.28), 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.