VTWNX vs. SWCRX

Last updated Jun 4, 2026

VTWNX (Vanguard Target Retirement 2020 Fund) and SWCRX (Schwab Target 2020 Fund) are both Target Retirement Date funds. Over the past 10 years, VTWNX returned 6.81%/yr vs 6.63%/yr for SWCRX. With a 0.98 correlation, they move nearly in lockstep. VTWNX charges 0.08%/yr vs 0.00%/yr for SWCRX.

Performance

VTWNX vs. SWCRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2020 Fund (VTWNX) and Schwab Target 2020 Fund (SWCRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VTWNX having a 5.10% return and SWCRX slightly lower at 4.95%. Both investments have delivered pretty close results over the past 10 years, with VTWNX having a 6.81% annualized return and SWCRX not far behind at 6.63%.

VTWNX

• 1D: 0.17%
• 1M: 2.27%
• YTD: 5.10%
• 6M: 5.39%
• 1Y: 13.27%
• 3Y*: 10.58%
• 5Y*: 4.89%
• 10Y*: 6.81%

SWCRX

• 1D: 0.15%
• 1M: 2.26%
• YTD: 4.95%
• 6M: 5.20%
• 1Y: 13.76%
• 3Y*: 10.79%
• 5Y*: 4.95%
• 10Y*: 6.63%

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

VTWNX vs. SWCRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTWNX Vanguard Target Retirement 2020 Fund	5.10%	12.17%	7.57%	12.71%	-14.17%	8.15%	12.05%	17.64%	-4.23%	11.83%
SWCRX Schwab Target 2020 Fund	4.95%	12.23%	8.32%	12.83%	-14.76%	7.86%	11.47%	16.16%	-4.46%	13.05%

Correlation

The correlation between VTWNX and SWCRX is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jun 8, 2006	0.98

The correlation between VTWNX and SWCRX has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

VTWNX vs. SWCRX - Sectors Allocation Comparison

Sectors	VTWNX	SWCRX
Technology	27.4%	26.4%
Financial Services	16.1%	11.9%
Industrials	12.3%	11.3%
Consumer Cyclical	9.4%	9.3%
Healthcare	8.3%	10.5%
Communication Services	8.0%	8.9%
Consumer Defensive	4.8%	4.6%
Energy	4.3%	4.3%
Basic Materials	4.3%	3.3%
Utilities	2.7%	2.0%
Real Estate	2.5%	7.6%

Return for Risk

VTWNX vs. SWCRX — Risk / Return Rank

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

VTWNX

VTWNX Risk / Return Rank: 72
VTWNX Sharpe Ratio Rank: 76
VTWNX Sortino Ratio Rank: 77
VTWNX Omega Ratio Rank: 76
VTWNX Calmar Ratio Rank: 62
VTWNX Martin Ratio Rank: 69

SWCRX

SWCRX Risk / Return Rank: 61
SWCRX Sharpe Ratio Rank: 61
SWCRX Sortino Ratio Rank: 64
SWCRX Omega Ratio Rank: 63
SWCRX Calmar Ratio Rank: 54
SWCRX Martin Ratio Rank: 63

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.

VTWNX vs. SWCRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2020 Fund (VTWNX) and Schwab Target 2020 Fund (SWCRX). 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.

	VTWNX	SWCRX	Difference
Sharpe ratio: Return per unit of total volatility	2.53	2.31	+0.22
Sortino ratio: Return per unit of downside risk	3.69	3.36	+0.33
Omega ratio: Gain probability vs. loss probability	1.50	1.44	+0.05
Calmar ratio: Return relative to maximum drawdown	3.04	2.80	+0.24
Martin ratio: Return relative to average drawdown	13.32	12.41	+0.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTWNX vs. SWCRX - Sharpe Ratio Comparison

The current VTWNX Sharpe Ratio is 2.53, which is comparable to the SWCRX Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of VTWNX and SWCRX, 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

	VTWNX	SWCRX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.53	2.31	+0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.66	0.45	+0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	0.71	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.55	0.00

Drawdowns

VTWNX vs. SWCRX - Drawdown Comparison

The maximum VTWNX drawdown since its inception was -42.16%, roughly equal to the maximum SWCRX drawdown of -42.19%. Use the drawdown chart below to compare losses from any high point for VTWNX and SWCRX.

Drawdown Indicators

	VTWNX	SWCRX	Difference
Max Drawdown Largest peak-to-trough decline	-42.16%	-42.19%	+0.03%
Max Drawdown (1Y) Largest decline over 1 year	-4.43%	-4.97%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	-6.20%	-8.01%	+1.81%
Max Drawdown (5Y) Largest decline over 5 years	-19.38%	-25.28%	+5.90%
Max Drawdown (10Y) Largest decline over 10 years	-19.38%	-25.28%	+5.90%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.80%	-5.81%	+1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.01%	1.12%	-0.11%

Volatility

VTWNX vs. SWCRX - Volatility Comparison

Vanguard Target Retirement 2020 Fund (VTWNX) and Schwab Target 2020 Fund (SWCRX) have volatilities of 1.90% and 1.98%, 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

	VTWNX	SWCRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.90%	1.98%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	4.36%	4.84%	-0.48%
Volatility (1Y) Calculated over the trailing 1-year period	5.32%	6.03%	-0.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.40%	10.96%	-3.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.28%	9.42%	-1.14%

VTWNX vs. SWCRX - Expense Ratio Comparison

VTWNX has a 0.08% expense ratio, which is higher than SWCRX's 0.00% 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

VTWNX vs. SWCRX - Dividend Comparison

VTWNX's dividend yield for the trailing twelve months is around 7.80%, less than SWCRX's 9.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWCRX Schwab Target 2020 Fund	9.87%	10.36%	9.04%	7.12%	6.14%	7.58%	3.91%	5.67%	6.04%	5.72%	5.65%	5.69%
VTWNX Vanguard Target Retirement 2020 Fund	7.80%	8.20%	9.35%	6.20%	4.99%	19.57%	6.28%	3.54%	4.94%	0.73%	2.74%	4.15%

Frequently Asked Questions

Can I hold both VTWNX and SWCRX in my portfolio?

With a correlation of 0.98, VTWNX and SWCRX 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, VTWNX or SWCRX?

SWCRX has higher volatility (1.98%) compared to VTWNX (1.90%). In terms of maximum drawdown, VTWNX dropped -42.16% vs SWCRX's -42.19%.

Which has better risk-adjusted returns?

VTWNX currently has the higher Sharpe Ratio (2.53 vs 2.31), 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.