FARFX vs. LTSTX

Last updated Jun 4, 2026

FARFX (Fidelity Advisor Managed Retirement 2025 Fund Class A) and LTSTX (Principal LifeTime 2025 Fund) are both Target Retirement Date funds. Over the past 10 years, FARFX returned 6.75%/yr vs 8.05%/yr for LTSTX. With a 0.97 correlation, they move nearly in lockstep. FARFX charges 0.73%/yr vs 0.01%/yr for LTSTX.

Performance

FARFX vs. LTSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Advisor Managed Retirement 2025 Fund Class A (FARFX) and Principal LifeTime 2025 Fund (LTSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FARFX achieves a 6.37% return, which is significantly higher than LTSTX's 5.20% return. Over the past 10 years, FARFX has underperformed LTSTX with an annualized return of 6.75%, while LTSTX has yielded a comparatively higher 8.05% annualized return.

FARFX

• 1D: 0.33%
• 1M: 2.51%
• YTD: 6.37%
• 6M: 6.84%
• 1Y: 15.37%
• 3Y*: 10.57%
• 5Y*: 4.26%
• 10Y*: 6.75%

LTSTX

• 1D: 0.17%
• 1M: 2.49%
• YTD: 5.20%
• 6M: 5.33%
• 1Y: 13.74%
• 3Y*: 12.33%
• 5Y*: 5.67%
• 10Y*: 8.05%

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

FARFX vs. LTSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FARFX Fidelity Advisor Managed Retirement 2025 Fund Class A	6.37%	13.15%	6.30%	11.55%	-15.86%	7.73%	12.80%	17.23%	-5.29%	13.98%
LTSTX Principal LifeTime 2025 Fund	5.20%	12.16%	11.91%	13.30%	-15.23%	10.91%	13.70%	20.50%	-6.41%	16.75%

Correlation

The correlation between FARFX and LTSTX is 0.96 - 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	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Mar 3, 2008	0.97

The correlation between FARFX and LTSTX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

Return for Risk

FARFX vs. LTSTX — Risk / Return Rank

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

FARFX

FARFX Risk / Return Rank: 69
FARFX Sharpe Ratio Rank: 71
FARFX Sortino Ratio Rank: 72
FARFX Omega Ratio Rank: 73
FARFX Calmar Ratio Rank: 62
FARFX Martin Ratio Rank: 68

LTSTX

LTSTX Risk / Return Rank: 53
LTSTX Sharpe Ratio Rank: 50
LTSTX Sortino Ratio Rank: 52
LTSTX Omega Ratio Rank: 54
LTSTX Calmar Ratio Rank: 49
LTSTX Martin Ratio Rank: 60

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.

FARFX vs. LTSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Advisor Managed Retirement 2025 Fund Class A (FARFX) and Principal LifeTime 2025 Fund (LTSTX). 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.

	FARFX	LTSTX	Difference
Sharpe ratio: Return per unit of total volatility	2.44	2.11	+0.33
Sortino ratio: Return per unit of downside risk	3.54	3.05	+0.49
Omega ratio: Gain probability vs. loss probability	1.48	1.41	+0.07
Calmar ratio: Return relative to maximum drawdown	3.03	2.67	+0.36
Martin ratio: Return relative to average drawdown	13.12	12.06	+1.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FARFX vs. LTSTX - Sharpe Ratio Comparison

The current FARFX Sharpe Ratio is 2.44, which is comparable to the LTSTX Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of FARFX and LTSTX, 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

	FARFX	LTSTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.44	2.11	+0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.62	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.82	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.48	+0.02

Drawdowns

FARFX vs. LTSTX - Drawdown Comparison

The maximum FARFX drawdown since its inception was -41.46%, smaller than the maximum LTSTX drawdown of -48.17%. Use the drawdown chart below to compare losses from any high point for FARFX and LTSTX.

Drawdown Indicators

	FARFX	LTSTX	Difference
Max Drawdown Largest peak-to-trough decline	-41.46%	-48.17%	+6.71%
Max Drawdown (1Y) Largest decline over 1 year	-5.13%	-5.24%	+0.11%
Max Drawdown (3Y) Largest decline over 3 years	-7.32%	-8.12%	+0.80%
Max Drawdown (5Y) Largest decline over 5 years	-21.75%	-21.01%	-0.74%
Max Drawdown (10Y) Largest decline over 10 years	-21.75%	-23.33%	+1.58%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-5.34%	-6.16%	+0.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.18%	1.16%	+0.02%

Volatility

FARFX vs. LTSTX - Volatility Comparison

Fidelity Advisor Managed Retirement 2025 Fund Class A (FARFX) has a higher volatility of 2.39% compared to Principal LifeTime 2025 Fund (LTSTX) at 2.02%. This indicates that FARFX's price experiences larger fluctuations and is considered to be riskier than LTSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FARFX	LTSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.39%	2.02%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	5.29%	5.39%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	6.36%	6.64%	-0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.18%	9.18%	-1.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.36%	9.83%	-1.47%

FARFX vs. LTSTX - Expense Ratio Comparison

FARFX has a 0.73% expense ratio, which is higher than LTSTX's 0.01% expense ratio.

Dividends

FARFX vs. LTSTX - Dividend Comparison

FARFX's dividend yield for the trailing twelve months is around 2.35%, less than LTSTX's 11.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FARFX Fidelity Advisor Managed Retirement 2025 Fund Class A	2.35%	2.43%	2.35%	2.21%	4.50%	4.96%	3.36%	3.64%	6.83%	24.58%	2.20%	4.23%
LTSTX Principal LifeTime 2025 Fund	11.59%	12.19%	9.74%	4.26%	8.00%	7.66%	5.25%	6.91%	6.39%	4.75%	3.65%	8.91%

Frequently Asked Questions

Can I hold both FARFX and LTSTX in my portfolio?

With a correlation of 0.96, FARFX and LTSTX 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, FARFX or LTSTX?

FARFX has higher volatility (2.39%) compared to LTSTX (2.02%). In terms of maximum drawdown, FARFX dropped -41.46% vs LTSTX's -48.17%.

Which has better risk-adjusted returns?

FARFX currently has the higher Sharpe Ratio (2.44 vs 2.11), 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.