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Principal Tax-Exempt Bond Fund (PTEAX) Diversifiers

Mutual Fund · Currency in USD · Last updated Jun 23, 2026

The investment seeks to provide a high level of income that is exempt from federal income tax while protecting investors' capital. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in tax-exempt bonds (securities issued by or on behalf of state or local governments and other public authorities) at the time of purchase. It also invests in inverse floating rate obligations (variable rate debt instruments that pay interest at rates that move in the opposite direction of prevailing interest rates), which are generally more volatile than other types of municipal obligations and may involve leverage.

Looking to diversify beyond PTEAX? The mutual funds below have the lowest correlation with PTEAX — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from PTEAX.

Best Diversifiers for PTEAX

37 mutual funds have low correlation with PTEAX (below 0.3), 0 of which are negatively correlated. The least correlated is DFA California Municipal Real Return Portfolio (DCARX) (Municipal Bonds) with a 1Y correlation of 0.01, down from 0.22 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
DCARX
DFA California Municipal Real Return Portfolio0.010.170.22
95
Municipal BondsPTEAX vs DCARX
DMREX
DFA Municipal Real Return Portfolio0.060.200.22
94
Municipal BondsPTEAX vs DMREX
PSBMX
Principal SmallCap Fund0.110.120.09
56
Small Cap Blend EquitiesPTEAX vs PSBMX
PPVIX
Principal SmallCap Value Fund II0.110.120.07
55
Small Cap Value EquitiesPTEAX vs PPVIX
PLFMX
Principal LargeCap S&P 500 Index Fund0.130.130.10
62
S&P 500PTEAX vs PLFMX
See all 54 diversifiers for PTEAX

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