AAHTX vs. PLWIX

Last updated Aug 1, 2026

AAHTX (American Funds 2045 Target Date Retirement Fund) and PLWIX (Principal LifeTime 2020 Fund) are both Target Retirement Date funds. Over the past 10 years, AAHTX returned 11.36%/yr vs 7.07%/yr for PLWIX. Their 0.95 correlation means they have historically moved very closely together. AAHTX charges 0.33%/yr vs 0.01%/yr for PLWIX.

Performance

AAHTX vs. PLWIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2045 Target Date Retirement Fund (AAHTX) and Principal LifeTime 2020 Fund (PLWIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAHTX achieves a 8.17% return, which is significantly higher than PLWIX's 3.96% return. Over the past 10 years, AAHTX has outperformed PLWIX with an annualized return of 11.36%, while PLWIX has yielded a comparatively lower 7.07% annualized return.

AAHTX

• 1D: 1.61%
• 1M: -1.34%
• 6M: 5.34%
• YTD: 8.17%
• 1Y: 17.93%
• 3Y*: 15.88%
• 5Y*: 8.81%
• 10Y*: 11.36%
• ALL TIME*: 8.57%

PLWIX

• 1D: 0.72%
• 1M: -0.16%
• 6M: 2.52%
• YTD: 3.96%
• 1Y: 9.09%
• 3Y*: 10.38%
• 5Y*: 4.88%
• 10Y*: 7.07%
• ALL TIME*: 5.98%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AAHTX American Funds 2045 Target Date Retirement Fund	$0.00	$0.00	$0.00
PLWIX Principal LifeTime 2020 Fund	$0.00	$0.00	$0.00

AAHTX vs. PLWIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAHTX American Funds 2045 Target Date Retirement Fund	8.17%	20.01%	14.82%	19.74%	-18.40%	16.83%	18.79%	24.33%	-5.92%	22.02%
PLWIX Principal LifeTime 2020 Fund	3.96%	11.32%	12.21%	12.23%	-14.36%	9.05%	12.70%	18.40%	-5.72%	14.96%

Correlation

The correlation between AAHTX and PLWIX is 0.93, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.93
Correlation (3Y) Balances recent behavior with more history.	0.90
Correlation (5Y) Shows whether the relationship held over a longer period.	0.93
Correlation (10Y) Provides a long-term view across more market conditions.	0.94
Correlation (All Time) Calculated using the full available price history since Feb 2, 2007	0.95

The correlation between AAHTX and PLWIX has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

Return for Risk

AAHTX vs. PLWIX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

AAHTX

AAHTX Risk / Return Rank: 52
AAHTX Sharpe Ratio Rank: 52
AAHTX Sortino Ratio Rank: 51
AAHTX Omega Ratio Rank: 51
AAHTX Calmar Ratio Rank: 48
AAHTX Martin Ratio Rank: 60

PLWIX

PLWIX Risk / Return Rank: 52
PLWIX Sharpe Ratio Rank: 50
PLWIX Sortino Ratio Rank: 50
PLWIX Omega Ratio Rank: 50
PLWIX Calmar Ratio Rank: 48
PLWIX Martin Ratio Rank: 59

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

AAHTX vs. PLWIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2045 Target Date Retirement Fund (AAHTX) and Principal LifeTime 2020 Fund (PLWIX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AAHTX	PLWIX	Difference
Sharpe ratio: Return per unit of total volatility	1.33	1.35	-0.02
Sortino ratio: Return per unit of downside risk	1.90	1.95	-0.04
Omega ratio: Gain probability vs. loss probability	1.24	1.25	-0.01
Calmar ratio: Return relative to maximum drawdown	1.77	1.81	-0.05
Martin ratio: Return relative to average drawdown	7.63	7.75	-0.12

AAHTX vs. PLWIX - Sharpe Ratio Comparison

The current AAHTX Sharpe Ratio is 1.33, which is comparable to the PLWIX Sharpe Ratio of 1.35. The chart below compares the historical Sharpe Ratios of AAHTX and PLWIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AAHTX vs. PLWIX - Drawdown Comparison

The maximum AAHTX drawdown since its inception was -50.05%, roughly equal to the maximum PLWIX drawdown of -49.07%. Use the drawdown chart below to compare losses from any high point for AAHTX and PLWIX.

Drawdown Indicators

	AAHTX	PLWIX	Difference
Max Drawdown Largest peak-to-trough decline	-50.05%	-49.07%	-0.98%
Max Drawdown (1Y) Largest decline over 1 year	-9.20%	-4.75%	-4.45%
Max Drawdown (3Y) Largest decline over 3 years	-14.49%	-6.97%	-7.52%
Max Drawdown (5Y) Largest decline over 5 years	-25.83%	-19.73%	-6.10%
Max Drawdown (10Y) Largest decline over 10 years	-28.92%	-20.29%	-8.63%
Current Drawdown Current decline from peak	-2.12%	-0.71%	-1.41%
Average Drawdown Average peak-to-trough decline	-7.04%	-5.69%	-1.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.13%	1.11%	+1.02%

Volatility

AAHTX vs. PLWIX - Volatility Comparison

American Funds 2045 Target Date Retirement Fund (AAHTX) has a higher volatility of 3.38% compared to Principal LifeTime 2020 Fund (PLWIX) at 1.73%. This indicates that AAHTX's price experiences larger fluctuations and is considered to be riskier than PLWIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAHTX	PLWIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.38%	1.73%	+1.65%
Volatility (6M) Calculated over the trailing 6-month period	10.06%	5.32%	+4.74%
Volatility (1Y) Calculated over the trailing 1-year period	12.25%	6.39%	+5.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.11%	8.29%	+5.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.57%	8.52%	+6.05%

AAHTX vs. PLWIX - Expense Ratio Comparison

AAHTX has a 0.33% expense ratio, which is higher than PLWIX's 0.01% expense ratio.

Dividends

AAHTX vs. PLWIX - Dividend Comparison

AAHTX's dividend yield for the trailing twelve months is around 5.41%, less than PLWIX's 9.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAHTX American Funds 2045 Target Date Retirement Fund	5.41%	5.85%	3.37%	2.46%	6.75%	4.62%	3.19%	4.24%	4.85%	2.33%	3.50%	4.74%
PLWIX Principal LifeTime 2020 Fund	9.70%	10.08%	11.91%	5.12%	9.82%	9.40%	5.90%	8.69%	7.35%	5.74%	3.73%	8.75%

Frequently Asked Questions

Can I hold both AAHTX and PLWIX in my portfolio?

With a correlation of 0.93, AAHTX and PLWIX 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, AAHTX or PLWIX?

AAHTX has higher volatility (3.38%) compared to PLWIX (1.73%). In terms of maximum drawdown, AAHTX dropped -50.05% vs PLWIX's -49.07%.

Which has better risk-adjusted returns?

PLWIX currently has the higher Sharpe Ratio (1.35 vs 1.33), 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.