How to read a SWAN Score
By SWAN Score · Published · 3 min read
SWAN Score is a 0–100 view of a stock, ETF, or fund’s observed history. A higher score means a calmer historical record under the tool’s scoring rules. It does not mean a better investment, a higher expected return, or guaranteed safety.
Start with the three individual signals and the available history. The headline number is a summary, not a substitute for those details.
Drawdown: how far it fell
Drawdown looks at falls from earlier highs and time spent below them, over up to 15 years. A higher Drawdown score means calmer observed behavior on this signal. It is not the percentage the investment lost.
The report also shows a deepest fall across the full available record. That figure can differ from the scored-window figure if an older, deeper fall sits outside the scoring window. Check which period you are reading before comparing numbers.
Jumpiness: how much it moved day to day
Jumpiness considers daily swings over up to five years. A higher score means calmer observed daily movement. A score of zero is the bottom of that calmness scale, not zero volatility or zero risk.
Daily movement and large cumulative falls are different questions. Small daily changes can build into a substantial decline. That is why Drawdown and Jumpiness are shown separately.
Income: how consistent recorded payouts were
When recent payouts are recorded, Income considers their consistency. A high yield by itself does not earn a high score. Limited payout history, interruptions, or annual declines can affect the signal, and some payout patterns can limit the total.
If no payouts are recorded in the last year of the available record, Income says “Not scored.” It is left out of the total, not treated as a zero. That does not prove promised payments were missed.
A ticker with Income scored and one without it use different combinations of signals. Read the individual signals rather than treating two similar totals as identical histories.
History span: how much time is observed
History span compares elapsed price history with a five-year reference. It measures time spanned, not the completeness of every daily record, and it does not add points to the score.
A newer fund has had less time to show difficult periods. Short history can therefore limit an otherwise calm-looking total. Neither a long record nor a short one tells you what will happen next.
What the score cannot tell you
The calculation uses historical prices adjusted for splits and payouts, rather than live quotes. It does not model your account, purchase price, taxes, fees, allocation, or ability to tolerate a loss. Available provider records can also be incomplete or revised.
SPY supplies comparison context, not scoring input. Headlines do not change the score. The tool is one way to inspect the past, not a recommendation to buy, sell, or hold a security.
Sources
Curious about a ticker? Look up a SWAN Score. Historical data only, not advice.