VFAIX vs. SWYLX

Last updated Jun 4, 2026

VFAIX (Vanguard Financials Index Fund Admiral Shares) and SWYLX (Schwab Target 2020 Index Fund) are both mutual funds - VFAIX is a Financials Equities fund managed by BlackRock, while SWYLX is a Target Retirement Date fund managed by Charles Schwab. Over the past 5 years, VFAIX returned 8.33%/yr vs 5.35%/yr for SWYLX. A 0.65 correlation means they provide meaningful diversification when combined. VFAIX charges 0.10%/yr vs 0.04%/yr for SWYLX.

Performance

VFAIX vs. SWYLX - Performance Comparison

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

Returns By Period

In the year-to-date period, VFAIX achieves a -5.08% return, which is significantly lower than SWYLX's 5.62% return.

VFAIX

• 1D: 0.03%
• 1M: -0.39%
• YTD: -5.08%
• 6M: -2.61%
• 1Y: 3.83%
• 3Y*: 18.99%
• 5Y*: 8.33%
• 10Y*: 12.42%

SWYLX

• 1D: 0.07%
• 1M: 2.02%
• YTD: 5.62%
• 6M: 6.04%
• 1Y: 14.68%
• 3Y*: 11.04%
• 5Y*: 5.35%
• 10Y*: —

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

VFAIX vs. SWYLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFAIX Vanguard Financials Index Fund Admiral Shares	-5.08%	14.90%	30.46%	14.07%	-12.26%	36.27%	-2.15%	31.63%	-13.47%	20.05%
SWYLX Schwab Target 2020 Index Fund	5.62%	12.23%	8.03%	13.15%	-13.79%	8.06%	11.04%	16.21%	-3.08%	12.11%

Correlation

The correlation between VFAIX and SWYLX is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (All Time) Calculated using the full available price history since Aug 31, 2016	0.65

The correlation between VFAIX and SWYLX has been stable across timeframes, ranging from 0.59 to 0.67 - a consistent structural relationship.

VFAIX vs. SWYLX - Sectors Allocation Comparison

Sectors	VFAIX	SWYLX
Financial Services	96.8%	14.2%
Technology	2.1%	27.8%
Real Estate	0.8%	8.2%
Industrials	0.2%	11.0%
Healthcare	0.1%	8.0%
Communication Services	0.0%	8.0%
Consumer Cyclical	0.0%	8.9%
Basic Materials	-	3.1%
Consumer Defensive	-	4.7%
Energy	-	3.9%
Utilities	-	2.4%

Return for Risk

VFAIX vs. SWYLX — Risk / Return Rank

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

VFAIX

VFAIX Risk / Return Rank: 4
VFAIX Sharpe Ratio Rank: 4
VFAIX Sortino Ratio Rank: 4
VFAIX Omega Ratio Rank: 4
VFAIX Calmar Ratio Rank: 4
VFAIX Martin Ratio Rank: 4

SWYLX

SWYLX Risk / Return Rank: 73
SWYLX Sharpe Ratio Rank: 74
SWYLX Sortino Ratio Rank: 74
SWYLX Omega Ratio Rank: 73
SWYLX Calmar Ratio Rank: 67
SWYLX Martin Ratio Rank: 76

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. SWYLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials Index Fund Admiral Shares (VFAIX) and Schwab Target 2020 Index Fund (SWYLX). 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.

	VFAIX	SWYLX	Difference
Sharpe ratio Return per unit of total volatility	0.29	2.50	-2.21
Sortino ratio Return per unit of downside risk	0.48	3.60	-3.12
Omega ratio Gain probability vs. loss probability	1.06	1.48	-0.42
Calmar ratio Return relative to maximum drawdown	0.29	3.16	-2.87
Martin ratio Return relative to average drawdown	0.76	14.33	-13.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFAIX vs. SWYLX - Sharpe Ratio Comparison

The current VFAIX Sharpe Ratio is 0.29, which is lower than the SWYLX Sharpe Ratio of 2.50. The chart below compares the historical Sharpe Ratios of VFAIX and SWYLX, 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

	VFAIX	SWYLX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.29	2.50	-2.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.64	-0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.82	-0.59

Drawdowns

VFAIX vs. SWYLX - Drawdown Comparison

The maximum VFAIX drawdown since its inception was -78.64%, which is greater than SWYLX's maximum drawdown of -20.63%. Use the drawdown chart below to compare losses from any high point for VFAIX and SWYLX.

Drawdown Indicators

	VFAIX	SWYLX	Difference
Max Drawdown Largest peak-to-trough decline	-78.64%	-20.63%	-58.01%
Max Drawdown (1Y) Largest decline over 1 year	-14.72%	-4.70%	-10.02%
Max Drawdown (3Y) Largest decline over 3 years	-17.31%	-7.02%	-10.29%
Max Drawdown (5Y) Largest decline over 5 years	-25.71%	-20.63%	-5.08%
Max Drawdown (10Y) Largest decline over 10 years	-44.37%	—	—
Current Drawdown Current decline from peak	-7.97%	0.00%	-7.97%
Average Drawdown Average peak-to-trough decline	-18.61%	-3.48%	-15.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.51%	1.04%	+4.47%

Volatility

VFAIX vs. SWYLX - Volatility Comparison

Vanguard Financials Index Fund Admiral Shares (VFAIX) has a higher volatility of 3.07% compared to Schwab Target 2020 Index Fund (SWYLX) at 2.01%. This indicates that VFAIX's price experiences larger fluctuations and is considered to be riskier than SWYLX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFAIX	SWYLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.07%	2.01%	+1.06%
Volatility (6M) Calculated over the trailing 6-month period	10.98%	4.78%	+6.20%
Volatility (1Y) Calculated over the trailing 1-year period	14.68%	5.95%	+8.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.33%	8.45%	+10.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.60%	8.26%	+14.34%

VFAIX vs. SWYLX - Expense Ratio Comparison

VFAIX has a 0.10% expense ratio, which is higher than SWYLX's 0.04% 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. SWYLX - Dividend Comparison

VFAIX's dividend yield for the trailing twelve months is around 1.54%, less than SWYLX's 5.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWYLX Schwab Target 2020 Index Fund	5.40%	5.70%	4.82%	2.61%	2.48%	2.44%	1.77%	2.12%	2.29%	1.21%	0.67%	0.00%
VFAIX Vanguard Financials Index Fund Admiral Shares	1.54%	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 SWYLX in my portfolio?

VFAIX and SWYLX have a correlation of 0.59, 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 SWYLX?

VFAIX has higher volatility (3.07%) compared to SWYLX (2.01%). In terms of maximum drawdown, VFAIX dropped -78.64% vs SWYLX's -20.63%.

Which has better risk-adjusted returns?

SWYLX currently has the higher Sharpe Ratio (2.50 vs 0.29), 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.