LTEBX vs. PDIIX
LTEBX (American Funds Limited Term Tax-Exempt Bond Fund) and PDIIX (PIMCO Diversified Income Fund) are both mutual funds - LTEBX is a Municipal Bonds fund managed by American Funds, while PDIIX is a Multisector Bonds fund managed by PIMCO. Over the past 10 years, LTEBX returned 1.75%/yr vs 4.34%/yr for PDIIX. At a 0.44 correlation, their price movements are largely independent. LTEBX charges 0.57%/yr vs 0.75%/yr for PDIIX.
Performance
LTEBX vs. PDIIX - Performance Comparison
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Returns By Period
In the year-to-date period, LTEBX achieves a 0.86% return, which is significantly lower than PDIIX's 1.74% return. Over the past 10 years, LTEBX has underperformed PDIIX with an annualized return of 1.75%, while PDIIX has yielded a comparatively higher 4.34% annualized return.
LTEBX
- 1D
- 0.06%
- 1M
- 0.60%
- YTD
- 0.86%
- 6M
- 1.24%
- 1Y
- 4.57%
- 3Y*
- 3.87%
- 5Y*
- 1.40%
- 10Y*
- 1.75%
PDIIX
- 1D
- 0.20%
- 1M
- 1.08%
- YTD
- 1.74%
- 6M
- 2.22%
- 1Y
- 8.07%
- 3Y*
- 8.65%
- 5Y*
- 2.53%
- 10Y*
- 4.34%
LTEBX vs. PDIIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LTEBX American Funds Limited Term Tax-Exempt Bond Fund | 0.86% | 6.02% | 1.97% | 3.82% | -5.12% | -0.01% | 4.01% | 4.67% | 1.08% | 2.95% |
PDIIX PIMCO Diversified Income Fund | 1.74% | 10.42% | 6.35% | 10.41% | -14.70% | 0.42% | 6.43% | 13.05% | -0.97% | 8.87% |
Correlation
The correlation between LTEBX and PDIIX is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Aug 4, 2003 | 0.44 |
Over the past year, LTEBX and PDIIX have become more correlated (0.66) than their long-term average of 0.44, meaning their price movements have been converging.
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Return for Risk
LTEBX vs. PDIIX — Risk / Return Rank
LTEBX
PDIIX
LTEBX vs. PDIIX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds Limited Term Tax-Exempt Bond Fund (LTEBX) and PIMCO Diversified Income Fund (PDIIX). 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.
| LTEBX | PDIIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.42 | ||
| Sortino ratioReturn per unit of downside risk | +0.64 | ||
| Omega ratioGain probability vs. loss probability | 1.67 | 1.43 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 1.97 | 2.32 | -0.35 |
| Martin ratioReturn relative to average drawdown | 5.81 | 9.46 | -3.65 |
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Drawdowns
LTEBX vs. PDIIX - Drawdown Comparison
The maximum LTEBX drawdown since its inception was -8.33%, smaller than the maximum PDIIX drawdown of -21.96%. Use the drawdown chart below to compare losses from any high point for LTEBX and PDIIX.
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Drawdown Indicators
| LTEBX | PDIIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.33% | -21.96% | +13.63% |
Max Drawdown (1Y)Largest decline over 1 year | -2.33% | -3.55% | +1.22% |
Max Drawdown (3Y)Largest decline over 3 years | -2.91% | -4.27% | +1.36% |
Max Drawdown (5Y)Largest decline over 5 years | -8.33% | -20.50% | +12.17% |
Max Drawdown (10Y)Largest decline over 10 years | -8.33% | -20.50% | +12.17% |
Current DrawdownCurrent decline from peak | -0.99% | -0.20% | -0.79% |
Average DrawdownAverage peak-to-trough decline | -1.05% | -2.81% | +1.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.79% | 0.87% | -0.08% |
Volatility
LTEBX vs. PDIIX - Volatility Comparison
The current volatility for American Funds Limited Term Tax-Exempt Bond Fund (LTEBX) is 0.54%, while PIMCO Diversified Income Fund (PDIIX) has a volatility of 1.19%. This indicates that LTEBX experiences smaller price fluctuations and is considered to be less risky than PDIIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LTEBX | PDIIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.54% | 1.19% | -0.65% |
Volatility (6M)Calculated over the trailing 6-month period | 1.48% | 3.21% | -1.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.80% | 3.88% | -2.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.32% | 5.01% | -2.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.34% | 4.89% | -2.55% |
LTEBX vs. PDIIX - Expense Ratio Comparison
LTEBX has a 0.57% expense ratio, which is lower than PDIIX's 0.75% expense ratio.
Dividends
LTEBX vs. PDIIX - Dividend Comparison
LTEBX's dividend yield for the trailing twelve months is around 2.59%, less than PDIIX's 5.51% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LTEBX American Funds Limited Term Tax-Exempt Bond Fund | 2.59% | 3.39% | 2.34% | 1.74% | 0.87% | 1.24% | 1.92% | 2.19% | 2.04% | 2.21% | 1.92% | 2.34% |
PDIIX PIMCO Diversified Income Fund | 5.51% | 5.42% | 5.18% | 4.66% | 3.91% | 3.65% | 3.68% | 5.04% | 4.46% | 4.84% | 4.94% | 7.68% |
Frequently Asked Questions
LTEBX and PDIIX have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PDIIX has higher volatility (1.19%) compared to LTEBX (0.54%). In terms of maximum drawdown, LTEBX dropped -8.33% vs PDIIX's -21.96%.
LTEBX currently has the higher Sharpe Ratio (2.55 vs 2.13), 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.
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