SWYLX vs. VSMGX

Last updated Jun 24, 2026

SWYLX (Schwab Target 2020 Index Fund) and VSMGX (Vanguard LifeStrategy 60/40 Fund) are both mutual funds - SWYLX is a Target Retirement Date fund managed by Charles Schwab, while VSMGX is a Allocation--50% to 70% Equity fund managed by Vanguard. Over the past 5 years, SWYLX returned 5.22%/yr vs 7.72%/yr for VSMGX. With a 0.95 correlation, they move nearly in lockstep. SWYLX charges 0.04%/yr vs 0.10%/yr for VSMGX.

Performance

SWYLX vs. VSMGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2020 Index Fund (SWYLX) and Vanguard LifeStrategy 60/40 Fund (VSMGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SWYLX achieves a 5.34% return, which is significantly lower than VSMGX's 7.75% return.

SWYLX

• 1D: -0.20%
• 1M: 0.76%
• YTD: 5.34%
• 6M: 5.10%
• 1Y: 13.19%
• 3Y*: 10.79%
• 5Y*: 5.22%
• 10Y*: —

VSMGX

• 1D: -0.19%
• 1M: 1.25%
• YTD: 7.75%
• 6M: 7.38%
• 1Y: 18.53%
• 3Y*: 15.70%
• 5Y*: 7.72%
• 10Y*: 9.07%

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

SWYLX vs. VSMGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWYLX Schwab Target 2020 Index Fund	5.34%	12.23%	8.03%	13.15%	-13.79%	8.06%	11.04%	16.21%	-3.08%	12.11%
VSMGX Vanguard LifeStrategy 60/40 Fund	7.75%	16.26%	15.03%	15.70%	-16.01%	10.08%	13.59%	19.37%	-4.91%	13.66%

Correlation

The correlation between SWYLX and VSMGX is 0.96 - 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	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Aug 30, 2016	0.95

The correlation between SWYLX and VSMGX has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

Return for Risk

SWYLX vs. VSMGX — Risk / Return Rank

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

SWYLX

SWYLX Risk / Return Rank: 69
SWYLX Sharpe Ratio Rank: 67
SWYLX Sortino Ratio Rank: 69
SWYLX Omega Ratio Rank: 69
SWYLX Calmar Ratio Rank: 64
SWYLX Martin Ratio Rank: 74

VSMGX

VSMGX Risk / Return Rank: 67
VSMGX Sharpe Ratio Rank: 68
VSMGX Sortino Ratio Rank: 68
VSMGX Omega Ratio Rank: 68
VSMGX Calmar Ratio Rank: 63
VSMGX Martin Ratio Rank: 69

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.

SWYLX vs. VSMGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2020 Index Fund (SWYLX) and Vanguard LifeStrategy 60/40 Fund (VSMGX). 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.

	SWYLX	VSMGX	Difference
Sharpe ratio: Return per unit of total volatility	2.20	2.21	-0.01
Sortino ratio: Return per unit of downside risk	3.14	3.12	+0.02
Omega ratio: Gain probability vs. loss probability	1.42	1.42	0.00
Calmar ratio: Return relative to maximum drawdown	2.94	2.90	+0.04
Martin ratio: Return relative to average drawdown	13.10	12.43	+0.67

SWYLX vs. VSMGX - Sharpe Ratio Comparison

The current SWYLX Sharpe Ratio is 2.20, which is comparable to the VSMGX Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of SWYLX and VSMGX, 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

SWYLX vs. VSMGX - Drawdown Comparison

The maximum SWYLX drawdown since its inception was -20.63%, smaller than the maximum VSMGX drawdown of -41.13%. Use the drawdown chart below to compare losses from any high point for SWYLX and VSMGX.

Drawdown Indicators

	SWYLX	VSMGX	Difference
Max Drawdown Largest peak-to-trough decline	-20.63%	-41.13%	+20.50%
Max Drawdown (1Y) Largest decline over 1 year	-4.70%	-6.64%	+1.94%
Max Drawdown (3Y) Largest decline over 3 years	-7.02%	-9.62%	+2.60%
Max Drawdown (5Y) Largest decline over 5 years	-20.63%	-22.29%	+1.66%
Max Drawdown (10Y) Largest decline over 10 years	—	-22.43%	—
Current Drawdown Current decline from peak	-0.41%	-0.45%	+0.04%
Average Drawdown Average peak-to-trough decline	-3.46%	-4.83%	+1.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.05%	1.55%	-0.50%

Volatility

SWYLX vs. VSMGX - Volatility Comparison

The current volatility for Schwab Target 2020 Index Fund (SWYLX) is 2.44%, while Vanguard LifeStrategy 60/40 Fund (VSMGX) has a volatility of 3.47%. This indicates that SWYLX experiences smaller price fluctuations and is considered to be less risky than VSMGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYLX	VSMGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.44%	3.47%	-1.03%
Volatility (6M) Calculated over the trailing 6-month period	5.19%	7.30%	-2.11%
Volatility (1Y) Calculated over the trailing 1-year period	6.30%	8.73%	-2.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.50%	10.27%	-1.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.26%	10.40%	-2.14%

SWYLX vs. VSMGX - Expense Ratio Comparison

SWYLX has a 0.04% expense ratio, which is lower than VSMGX's 0.10% 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

SWYLX vs. VSMGX - Dividend Comparison

SWYLX's dividend yield for the trailing twelve months is around 5.42%, more than VSMGX's 4.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWYLX Schwab Target 2020 Index Fund	5.42%	5.70%	4.82%	2.61%	2.48%	2.44%	1.77%	2.12%	2.29%	1.21%	0.67%	0.00%
VSMGX Vanguard LifeStrategy 60/40 Fund	4.87%	5.25%	11.49%	4.01%	2.66%	3.86%	3.46%	2.52%	4.11%	1.09%	2.26%	3.89%

Frequently Asked Questions

Can I hold both SWYLX and VSMGX in my portfolio?

With a correlation of 0.96, SWYLX and VSMGX 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, SWYLX or VSMGX?

VSMGX has higher volatility (3.47%) compared to SWYLX (2.44%). In terms of maximum drawdown, SWYLX dropped -20.63% vs VSMGX's -41.13%.

Which has better risk-adjusted returns?

VSMGX currently has the higher Sharpe Ratio (2.21 vs 2.20), 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.