VITSX vs. SWYGX

Last updated Jun 4, 2026

VITSX (Vanguard Total Stock Market Index Fund Institutional Shares) and SWYGX (Schwab Target 2040 Index Fund) are both mutual funds - VITSX is a Large Cap Blend Equities fund managed by Vanguard, while SWYGX is a Target Retirement Date fund managed by Charles Schwab. Over the past 5 years, VITSX returned 13.05%/yr vs 9.03%/yr for SWYGX. With a 0.96 correlation, they move nearly in lockstep. VITSX charges 0.03%/yr vs 0.04%/yr for SWYGX.

Performance

VITSX vs. SWYGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) 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, VITSX achieves a 11.98% return, which is significantly higher than SWYGX's 10.38% return.

VITSX

• 1D: 0.24%
• 1M: 5.76%
• YTD: 11.98%
• 6M: 11.88%
• 1Y: 29.11%
• 3Y*: 22.36%
• 5Y*: 13.05%
• 10Y*: 15.13%

SWYGX

• 1D: 0.27%
• 1M: 4.37%
• YTD: 10.38%
• 6M: 10.79%
• 1Y: 23.69%
• 3Y*: 17.18%
• 5Y*: 9.03%
• 10Y*: —

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

VITSX vs. SWYGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VITSX Vanguard Total Stock Market Index Fund Institutional Shares	11.98%	17.14%	23.25%	26.51%	-19.51%	25.74%	20.99%	30.80%	-5.18%	21.16%
SWYGX Schwab Target 2040 Index Fund	10.38%	17.57%	12.83%	19.45%	-16.94%	15.68%	14.19%	23.63%	-6.62%	19.12%

Correlation

The correlation between VITSX and SWYGX 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 31, 2016	0.96

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

VITSX vs. SWYGX - Sectors Allocation Comparison

Sectors	VITSX	SWYGX
Technology	33.3%	27.1%
Financial Services	11.9%	15.0%
Communication Services	10.1%	7.7%
Consumer Cyclical	9.8%	8.9%
Industrials	9.5%	11.2%
Healthcare	9.1%	7.8%
Consumer Defensive	4.7%	4.6%
Energy	3.8%	4.0%
Utilities	2.7%	2.5%
Real Estate	2.4%	7.6%
Basic Materials	2.0%	3.6%

Return for Risk

VITSX vs. SWYGX — Risk / Return Rank

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

VITSX

VITSX Risk / Return Rank: 71
VITSX Sharpe Ratio Rank: 72
VITSX Sortino Ratio Rank: 65
VITSX Omega Ratio Rank: 63
VITSX Calmar Ratio Rank: 75
VITSX Martin Ratio Rank: 83

SWYGX

SWYGX Risk / Return Rank: 70
SWYGX Sharpe Ratio Rank: 72
SWYGX Sortino Ratio Rank: 69
SWYGX Omega Ratio Rank: 65
SWYGX Calmar Ratio Rank: 69
SWYGX 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.

VITSX vs. SWYGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) 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.

	VITSX	SWYGX	Difference
Sharpe ratio: Return per unit of total volatility	2.47	2.46	+0.01
Sortino ratio: Return per unit of downside risk	3.36	3.45	-0.08
Omega ratio: Gain probability vs. loss probability	1.44	1.45	-0.01
Calmar ratio: Return relative to maximum drawdown	3.37	3.21	+0.17
Martin ratio: Return relative to average drawdown	15.58	14.38	+1.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VITSX vs. SWYGX - Sharpe Ratio Comparison

The current VITSX Sharpe Ratio is 2.47, which is comparable to the SWYGX Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of VITSX 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.

Sharpe Ratios by Period

	VITSX	SWYGX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.47	2.46	+0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.76	0.69	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.82	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.76	-0.27

Drawdowns

VITSX vs. SWYGX - Drawdown Comparison

The maximum VITSX drawdown since its inception was -55.30%, which is greater than SWYGX's maximum drawdown of -27.62%. Use the drawdown chart below to compare losses from any high point for VITSX and SWYGX.

Drawdown Indicators

	VITSX	SWYGX	Difference
Max Drawdown Largest peak-to-trough decline	-55.30%	-27.62%	-27.68%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-7.50%	-1.42%
Max Drawdown (3Y) Largest decline over 3 years	-19.36%	-12.96%	-6.40%
Max Drawdown (5Y) Largest decline over 5 years	-25.36%	-24.07%	-1.29%
Max Drawdown (10Y) Largest decline over 10 years	-34.97%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.07%	-4.17%	-5.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.93%	1.67%	+0.26%

Volatility

VITSX vs. SWYGX - Volatility Comparison

Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) and Schwab Target 2040 Index Fund (SWYGX) have volatilities of 2.95% and 3.05%, 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

	VITSX	SWYGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.95%	3.05%	-0.10%
Volatility (6M) Calculated over the trailing 6-month period	9.19%	7.80%	+1.39%
Volatility (1Y) Calculated over the trailing 1-year period	12.19%	9.80%	+2.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.36%	13.18%	+4.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.41%	14.02%	+4.39%

VITSX vs. SWYGX - Expense Ratio Comparison

VITSX has a 0.03% expense ratio, which is lower than SWYGX's 0.04% 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

VITSX vs. SWYGX - Dividend Comparison

VITSX's dividend yield for the trailing twelve months is around 1.01%, less than SWYGX's 2.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWYGX Schwab Target 2040 Index Fund	2.02%	2.23%	2.28%	2.06%	2.03%	1.80%	1.72%	1.95%	2.21%	1.44%	1.13%	0.00%
VITSX Vanguard Total Stock Market Index Fund Institutional Shares	1.01%	1.12%	1.27%	1.43%	1.66%	1.21%	1.42%	1.77%	2.04%	1.71%	1.93%	1.99%

Frequently Asked Questions

Can I hold both VITSX and SWYGX in my portfolio?

With a correlation of 0.96, VITSX 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, VITSX or SWYGX?

SWYGX has higher volatility (3.05%) compared to VITSX (2.95%). In terms of maximum drawdown, VITSX dropped -55.30% vs SWYGX's -27.62%.

Which has better risk-adjusted returns?

VITSX currently has the higher Sharpe Ratio (2.47 vs 2.46), 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.