AAOTX vs. LTIUX

Last updated Jul 11, 2026

AAOTX (American Funds 2065 Target Date Retirement Fund Class A) and LTIUX (Principal LifeTime 2035 Fund) are both Target Retirement Date funds. Over the past 5 years, AAOTX returned 9.25%/yr vs 6.51%/yr for LTIUX. With a 0.96 correlation, they move nearly in lockstep. AAOTX charges 0.73%/yr vs 0.01%/yr for LTIUX.

Performance

AAOTX vs. LTIUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2065 Target Date Retirement Fund Class A (AAOTX) and Principal LifeTime 2035 Fund (LTIUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAOTX achieves a 10.58% return, which is significantly higher than LTIUX's 6.17% return.

AAOTX

• 1D: 0.82%
• 1M: 1.47%
• 6M: 7.42%
• YTD: 10.58%
• 1Y: 19.92%
• 3Y*: 18.50%
• 5Y*: 9.25%
• 10Y*: —

LTIUX

• 1D: 0.50%
• 1M: 0.43%
• 6M: 4.29%
• YTD: 6.17%
• 1Y: 13.11%
• 3Y*: 14.09%
• 5Y*: 6.51%
• 10Y*: 9.47%

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

AAOTX vs. LTIUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
AAOTX American Funds 2065 Target Date Retirement Fund Class A	10.58%	20.36%	15.20%	21.16%	-19.94%	16.85%	46.68%
LTIUX Principal LifeTime 2035 Fund	6.17%	14.26%	14.13%	16.51%	-17.48%	14.07%	38.36%

Correlation

The correlation between AAOTX and LTIUX is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Mar 27, 2020	0.96

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

Return for Risk

AAOTX vs. LTIUX — Risk / Return Rank

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

AAOTX

AAOTX Risk / Return Rank: 47
AAOTX Sharpe Ratio Rank: 46
AAOTX Sortino Ratio Rank: 44
AAOTX Omega Ratio Rank: 46
AAOTX Calmar Ratio Rank: 43
AAOTX Martin Ratio Rank: 56

LTIUX

LTIUX Risk / Return Rank: 43
LTIUX Sharpe Ratio Rank: 40
LTIUX Sortino Ratio Rank: 40
LTIUX Omega Ratio Rank: 41
LTIUX Calmar Ratio Rank: 41
LTIUX Martin Ratio Rank: 53

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.

AAOTX vs. LTIUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2065 Target Date Retirement Fund Class A (AAOTX) and Principal LifeTime 2035 Fund (LTIUX). 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.

	AAOTX	LTIUX	Difference
Sharpe ratio: Return per unit of total volatility	1.52	1.40	+0.12
Sortino ratio: Return per unit of downside risk	2.15	2.01	+0.14
Omega ratio: Gain probability vs. loss probability	1.28	1.26	+0.02
Calmar ratio: Return relative to maximum drawdown	2.01	1.95	+0.05
Martin ratio: Return relative to average drawdown	8.87	8.46	+0.41

AAOTX vs. LTIUX - Sharpe Ratio Comparison

The current AAOTX Sharpe Ratio is 1.52, which is comparable to the LTIUX Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of AAOTX and LTIUX, 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

AAOTX vs. LTIUX - Drawdown Comparison

The maximum AAOTX drawdown since its inception was -27.57%, smaller than the maximum LTIUX drawdown of -49.65%. Use the drawdown chart below to compare losses from any high point for AAOTX and LTIUX.

Drawdown Indicators

	AAOTX	LTIUX	Difference
Max Drawdown Largest peak-to-trough decline	-27.57%	-49.65%	+22.08%
Max Drawdown (1Y) Largest decline over 1 year	-9.82%	-6.57%	-3.25%
Max Drawdown (3Y) Largest decline over 3 years	-15.53%	-11.08%	-4.45%
Max Drawdown (5Y) Largest decline over 5 years	-27.57%	-24.23%	-3.34%
Max Drawdown (10Y) Largest decline over 10 years	—	-28.12%	—
Current Drawdown Current decline from peak	-0.63%	-0.56%	-0.07%
Average Drawdown Average peak-to-trough decline	-5.94%	-6.67%	+0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	1.51%	+0.71%

Volatility

AAOTX vs. LTIUX - Volatility Comparison

American Funds 2065 Target Date Retirement Fund Class A (AAOTX) has a higher volatility of 4.74% compared to Principal LifeTime 2035 Fund (LTIUX) at 3.14%. This indicates that AAOTX's price experiences larger fluctuations and is considered to be riskier than LTIUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAOTX	LTIUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.74%	3.14%	+1.60%
Volatility (6M) Calculated over the trailing 6-month period	10.77%	7.67%	+3.10%
Volatility (1Y) Calculated over the trailing 1-year period	12.97%	9.16%	+3.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.88%	11.91%	+2.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.11%	12.42%	+2.69%

AAOTX vs. LTIUX - Expense Ratio Comparison

AAOTX has a 0.73% expense ratio, which is higher than LTIUX's 0.01% expense ratio.

Dividends

AAOTX vs. LTIUX - Dividend Comparison

AAOTX's dividend yield for the trailing twelve months is around 3.98%, less than LTIUX's 8.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAOTX American Funds 2065 Target Date Retirement Fund Class A	3.98%	4.41%	2.52%	1.71%	3.67%	1.34%	0.60%	0.00%	0.00%	0.00%	0.00%	0.00%
LTIUX Principal LifeTime 2035 Fund	8.50%	9.03%	9.46%	4.17%	7.50%	7.06%	5.35%	7.28%	7.75%	5.46%	4.28%	5.59%

Frequently Asked Questions

Can I hold both AAOTX and LTIUX in my portfolio?

With a correlation of 0.94, AAOTX and LTIUX 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, AAOTX or LTIUX?

AAOTX has higher volatility (4.74%) compared to LTIUX (3.14%). In terms of maximum drawdown, AAOTX dropped -27.57% vs LTIUX's -49.65%.

Which has better risk-adjusted returns?

AAOTX currently has the higher Sharpe Ratio (1.52 vs 1.40), 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.