TRRJX vs. SWYGX

Last updated Jun 23, 2026

TRRJX (T. Rowe Price Retirement 2035 Fund) and SWYGX (Schwab Target 2040 Index Fund) are both Target Retirement Date funds. Over the past 5 years, TRRJX returned 6.72%/yr vs 9.08%/yr for SWYGX. With a 0.96 correlation, they move nearly in lockstep. TRRJX charges 0.59%/yr vs 0.04%/yr for SWYGX.

Performance

TRRJX vs. SWYGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Retirement 2035 Fund (TRRJX) and Schwab Target 2040 Index Fund (SWYGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TRRJX achieves a 9.02% return, which is significantly lower than SWYGX's 10.03% return.

TRRJX

• 1D: 0.95%
• 1M: 1.27%
• YTD: 9.02%
• 6M: 8.89%
• 1Y: 15.71%
• 3Y*: 13.13%
• 5Y*: 6.72%
• 10Y*: 9.87%

SWYGX

• 1D: 0.91%
• 1M: 1.47%
• YTD: 10.03%
• 6M: 9.80%
• 1Y: 23.24%
• 3Y*: 16.09%
• 5Y*: 9.08%
• 10Y*: —

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

TRRJX vs. SWYGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TRRJX T. Rowe Price Retirement 2035 Fund	9.02%	10.96%	11.99%	18.14%	-17.96%	15.21%	17.04%	23.72%	-6.95%	20.89%
SWYGX Schwab Target 2040 Index Fund	10.03%	17.57%	12.83%	19.45%	-16.94%	15.68%	14.19%	23.63%	-6.62%	19.12%

Correlation

The correlation between TRRJX and SWYGX is 0.94, 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	0.94
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	0.96

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

Return for Risk

TRRJX vs. SWYGX — Risk / Return Rank

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

TRRJX

TRRJX Risk / Return Rank: 31
TRRJX Sharpe Ratio Rank: 29
TRRJX Sortino Ratio Rank: 26
TRRJX Omega Ratio Rank: 33
TRRJX Calmar Ratio Rank: 31
TRRJX Martin Ratio Rank: 36

SWYGX

SWYGX Risk / Return Rank: 69
SWYGX Sharpe Ratio Rank: 69
SWYGX Sortino Ratio Rank: 66
SWYGX Omega Ratio Rank: 65
SWYGX Calmar Ratio Rank: 69
SWYGX Martin Ratio Rank: 77

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.

TRRJX vs. SWYGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Retirement 2035 Fund (TRRJX) and Schwab Target 2040 Index Fund (SWYGX). 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.

	TRRJX	SWYGX	Difference
Sharpe ratio: Return per unit of total volatility	1.45	2.22	-0.77
Sortino ratio: Return per unit of downside risk	2.00	3.09	-1.09
Omega ratio: Gain probability vs. loss probability	1.28	1.41	-0.13
Calmar ratio: Return relative to maximum drawdown	1.97	3.07	-1.09
Martin ratio: Return relative to average drawdown	7.54	13.49	-5.95

TRRJX vs. SWYGX - Sharpe Ratio Comparison

The current TRRJX Sharpe Ratio is 1.45, which is lower than the SWYGX Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of TRRJX and SWYGX, 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

TRRJX vs. SWYGX - Drawdown Comparison

The maximum TRRJX drawdown since its inception was -53.57%, which is greater than SWYGX's maximum drawdown of -27.62%. Use the drawdown chart below to compare losses from any high point for TRRJX and SWYGX.

Drawdown Indicators

	TRRJX	SWYGX	Difference
Max Drawdown Largest peak-to-trough decline	-53.57%	-27.62%	-25.95%
Max Drawdown (1Y) Largest decline over 1 year	-8.06%	-7.50%	-0.56%
Max Drawdown (3Y) Largest decline over 3 years	-12.52%	-12.96%	+0.44%
Max Drawdown (5Y) Largest decline over 5 years	-25.85%	-24.07%	-1.78%
Max Drawdown (10Y) Largest decline over 10 years	-30.14%	—	—
Current Drawdown Current decline from peak	-0.27%	-0.31%	+0.04%
Average Drawdown Average peak-to-trough decline	-6.63%	-4.16%	-2.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.09%	1.70%	+0.39%

Volatility

TRRJX vs. SWYGX - Volatility Comparison

T. Rowe Price Retirement 2035 Fund (TRRJX) and Schwab Target 2040 Index Fund (SWYGX) have volatilities of 3.96% and 4.09%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TRRJX	SWYGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.96%	4.09%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	9.38%	8.54%	+0.84%
Volatility (1Y) Calculated over the trailing 1-year period	10.96%	10.36%	+0.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.92%	13.26%	-0.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.57%	14.04%	-0.47%

TRRJX vs. SWYGX - Expense Ratio Comparison

TRRJX has a 0.59% expense ratio, which is higher than SWYGX's 0.04% expense ratio.

Dividends

TRRJX vs. SWYGX - Dividend Comparison

TRRJX has not paid dividends to shareholders, while SWYGX's dividend yield for the trailing twelve months is around 2.03%.

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%
TRRJX T. Rowe Price Retirement 2035 Fund	0.00%	0.00%	2.36%	4.68%	9.67%	6.89%	4.80%	5.68%	8.55%	3.80%	2.89%	4.05%

Frequently Asked Questions

Can I hold both TRRJX and SWYGX in my portfolio?

With a correlation of 0.94, TRRJX and SWYGX 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, TRRJX or SWYGX?

SWYGX has higher volatility (4.09%) compared to TRRJX (3.96%). In terms of maximum drawdown, TRRJX dropped -53.57% vs SWYGX's -27.62%.

Which has better risk-adjusted returns?

SWYGX currently has the higher Sharpe Ratio (2.22 vs 1.45), 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.