VFAIX vs. SWPPX

Last updated Jun 23, 2026

VFAIX (Vanguard Financials Index Fund Admiral Shares) and SWPPX (Schwab S&P 500 Index Fund) are both mutual funds - VFAIX is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while SWPPX is a Large Cap Blend Equities fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, VFAIX returned 13.16%/yr vs 15.55%/yr for SWPPX. Their correlation of 0.82 suggests significant overlap in exposure. VFAIX charges 0.09%/yr vs 0.02%/yr for SWPPX.

Performance

VFAIX vs. SWPPX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials Index Fund Admiral Shares (VFAIX) and Schwab S&P 500 Index Fund (SWPPX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFAIX achieves a -1.21% return, which is significantly lower than SWPPX's 10.15% return. Over the past 10 years, VFAIX has underperformed SWPPX with an annualized return of 13.16%, while SWPPX has yielded a comparatively higher 15.55% annualized return.

VFAIX

• 1D: -0.72%
• 1M: 3.20%
• YTD: -1.21%
• 6M: -2.50%
• 1Y: 9.24%
• 3Y*: 19.62%
• 5Y*: 10.94%
• 10Y*: 13.16%

SWPPX

• 1D: 1.10%
• 1M: 0.47%
• YTD: 10.15%
• 6M: 9.65%
• 1Y: 27.14%
• 3Y*: 20.95%
• 5Y*: 14.08%
• 10Y*: 15.55%

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

VFAIX vs. SWPPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFAIX Vanguard Financials Index Fund Admiral Shares	-1.21%	14.90%	30.46%	14.07%	-12.26%	36.27%	-2.15%	31.63%	-13.47%	20.05%
SWPPX Schwab S&P 500 Index Fund	10.15%	17.87%	24.96%	26.26%	-18.14%	28.67%	18.38%	31.46%	-4.47%	21.81%

Correlation

The correlation between VFAIX and SWPPX is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.82

Over the past year, the correlation between VFAIX and SWPPX has dropped to 0.60 - well below their long-term average of 0.82, suggesting their price drivers have been diverging.

VFAIX vs. SWPPX - Sectors Allocation Comparison

Sectors	VFAIX	SWPPX
Financial Services	96.8%	11.1%
Technology	2.1%	39.0%
Real Estate	0.8%	1.8%
Industrials	0.2%	7.8%
Healthcare	0.1%	8.3%
Communication Services	0.0%	10.6%
Consumer Cyclical	0.0%	9.9%
Basic Materials	-	1.7%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Utilities	-	2.1%

Return for Risk

VFAIX vs. SWPPX — Risk / Return Rank

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

VFAIX

VFAIX Risk / Return Rank: 8
VFAIX Sharpe Ratio Rank: 8
VFAIX Sortino Ratio Rank: 8
VFAIX Omega Ratio Rank: 8
VFAIX Calmar Ratio Rank: 7
VFAIX Martin Ratio Rank: 7

SWPPX

SWPPX Risk / Return Rank: 66
SWPPX Sharpe Ratio Rank: 64
SWPPX Sortino Ratio Rank: 58
SWPPX Omega Ratio Rank: 60
SWPPX Calmar Ratio Rank: 68
SWPPX Martin Ratio Rank: 79

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.

VFAIX vs. SWPPX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials Index Fund Admiral Shares (VFAIX) and Schwab S&P 500 Index Fund (SWPPX). 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.

	VFAIX	SWPPX	Difference
Sharpe ratio: Return per unit of total volatility	0.64	2.16	-1.52
Sortino ratio: Return per unit of downside risk	0.96	2.91	-1.95
Omega ratio: Gain probability vs. loss probability	1.12	1.39	-0.27
Calmar ratio: Return relative to maximum drawdown	0.65	3.04	-2.39
Martin ratio: Return relative to average drawdown	1.70	13.71	-12.01

VFAIX vs. SWPPX - Sharpe Ratio Comparison

The current VFAIX Sharpe Ratio is 0.64, which is lower than the SWPPX Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of VFAIX and SWPPX, 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

VFAIX vs. SWPPX - Drawdown Comparison

The maximum VFAIX drawdown since its inception was -78.64%, which is greater than SWPPX's maximum drawdown of -55.06%. Use the drawdown chart below to compare losses from any high point for VFAIX and SWPPX.

Drawdown Indicators

	VFAIX	SWPPX	Difference
Max Drawdown Largest peak-to-trough decline	-78.64%	-55.06%	-23.58%
Max Drawdown (1Y) Largest decline over 1 year	-14.72%	-8.89%	-5.83%
Max Drawdown (3Y) Largest decline over 3 years	-17.31%	-18.74%	+1.43%
Max Drawdown (5Y) Largest decline over 5 years	-25.71%	-24.51%	-1.20%
Max Drawdown (10Y) Largest decline over 10 years	-44.37%	-33.80%	-10.57%
Current Drawdown Current decline from peak	-4.22%	-1.38%	-2.84%
Average Drawdown Average peak-to-trough decline	-18.58%	-9.93%	-8.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.65%	1.97%	+3.68%

Volatility

VFAIX vs. SWPPX - Volatility Comparison

The current volatility for Vanguard Financials Index Fund Admiral Shares (VFAIX) is 4.31%, while Schwab S&P 500 Index Fund (SWPPX) has a volatility of 4.83%. This indicates that VFAIX experiences smaller price fluctuations and is considered to be less risky than SWPPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFAIX	SWPPX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.31%	4.83%	-0.52%
Volatility (6M) Calculated over the trailing 6-month period	11.37%	9.94%	+1.43%
Volatility (1Y) Calculated over the trailing 1-year period	14.92%	12.50%	+2.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.32%	17.03%	+2.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.62%	18.27%	+4.35%

VFAIX vs. SWPPX - Expense Ratio Comparison

VFAIX has a 0.09% expense ratio, which is higher than SWPPX's 0.02% 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

VFAIX vs. SWPPX - Dividend Comparison

VFAIX's dividend yield for the trailing twelve months is around 1.48%, more than SWPPX's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWPPX Schwab S&P 500 Index Fund	1.01%	1.11%	1.23%	1.43%	1.67%	1.27%	1.81%	1.95%	2.67%	1.79%	2.55%	3.17%
VFAIX Vanguard Financials Index Fund Admiral Shares	1.48%	1.56%	1.75%	2.08%	2.31%	2.62%	2.21%	2.17%	2.30%	1.54%	1.64%	2.00%

Frequently Asked Questions

Can I hold both VFAIX and SWPPX in my portfolio?

VFAIX and SWPPX have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFAIX or SWPPX?

SWPPX has higher volatility (4.83%) compared to VFAIX (4.31%). In terms of maximum drawdown, VFAIX dropped -78.64% vs SWPPX's -55.06%.

Which has better risk-adjusted returns?

SWPPX currently has the higher Sharpe Ratio (2.16 vs 0.64), 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.