LTFIX vs. SWMRX

Last updated Jun 23, 2026

LTFIX (Principal LifeTime 2055 Fund) and SWMRX (Schwab Target 2045 Fund) are both Target Retirement Date funds. Over the past 10 years, LTFIX returned 11.62%/yr vs 10.79%/yr for SWMRX. With a 0.97 correlation, they move nearly in lockstep. LTFIX charges 0.01%/yr vs 0.00%/yr for SWMRX.

Performance

LTFIX vs. SWMRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal LifeTime 2055 Fund (LTFIX) and Schwab Target 2045 Fund (SWMRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LTFIX achieves a 8.98% return, which is significantly lower than SWMRX's 9.87% return. Over the past 10 years, LTFIX has outperformed SWMRX with an annualized return of 11.62%, while SWMRX has yielded a comparatively lower 10.79% annualized return.

LTFIX

• 1D: 1.22%
• 1M: 1.76%
• YTD: 8.98%
• 6M: 8.84%
• 1Y: 22.25%
• 3Y*: 17.49%
• 5Y*: 9.45%
• 10Y*: 11.62%

SWMRX

• 1D: 1.03%
• 1M: 1.28%
• YTD: 9.87%
• 6M: 9.67%
• 1Y: 24.00%
• 3Y*: 16.50%
• 5Y*: 8.88%
• 10Y*: 10.79%

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

LTFIX vs. SWMRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LTFIX Principal LifeTime 2055 Fund	8.98%	17.80%	17.28%	20.33%	-18.84%	17.73%	16.47%	27.27%	-9.03%	22.52%
SWMRX Schwab Target 2045 Fund	9.87%	18.84%	13.37%	20.10%	-19.24%	16.85%	14.95%	23.95%	-9.82%	21.39%

Correlation

The correlation between LTFIX and SWMRX is 0.97 - 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	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jan 23, 2013	0.97

The correlation between LTFIX and SWMRX has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

Return for Risk

LTFIX vs. SWMRX — Risk / Return Rank

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

LTFIX

LTFIX Risk / Return Rank: 46
LTFIX Sharpe Ratio Rank: 42
LTFIX Sortino Ratio Rank: 40
LTFIX Omega Ratio Rank: 41
LTFIX Calmar Ratio Rank: 48
LTFIX Martin Ratio Rank: 59

SWMRX

SWMRX Risk / Return Rank: 58
SWMRX Sharpe Ratio Rank: 58
SWMRX Sortino Ratio Rank: 55
SWMRX Omega Ratio Rank: 56
SWMRX Calmar Ratio Rank: 56
SWMRX Martin Ratio Rank: 65

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.

LTFIX vs. SWMRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal LifeTime 2055 Fund (LTFIX) and Schwab Target 2045 Fund (SWMRX). 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.

	LTFIX	SWMRX	Difference
Sharpe ratio: Return per unit of total volatility	1.75	2.07	-0.32
Sortino ratio: Return per unit of downside risk	2.45	2.86	-0.41
Omega ratio: Gain probability vs. loss probability	1.32	1.38	-0.06
Calmar ratio: Return relative to maximum drawdown	2.52	2.75	-0.23
Martin ratio: Return relative to average drawdown	11.07	11.90	-0.83

LTFIX vs. SWMRX - Sharpe Ratio Comparison

The current LTFIX Sharpe Ratio is 1.75, which is comparable to the SWMRX Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of LTFIX and SWMRX, 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

LTFIX vs. SWMRX - Drawdown Comparison

The maximum LTFIX drawdown since its inception was -52.73%, which is greater than SWMRX's maximum drawdown of -30.41%. Use the drawdown chart below to compare losses from any high point for LTFIX and SWMRX.

Drawdown Indicators

	LTFIX	SWMRX	Difference
Max Drawdown Largest peak-to-trough decline	-52.73%	-30.41%	-22.32%
Max Drawdown (1Y) Largest decline over 1 year	-8.71%	-8.62%	-0.09%
Max Drawdown (3Y) Largest decline over 3 years	-15.70%	-14.20%	-1.50%
Max Drawdown (5Y) Largest decline over 5 years	-26.80%	-30.12%	+3.32%
Max Drawdown (10Y) Largest decline over 10 years	-33.50%	-30.41%	-3.09%
Current Drawdown Current decline from peak	-0.63%	-0.39%	-0.24%
Average Drawdown Average peak-to-trough decline	-7.62%	-5.16%	-2.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	1.99%	-0.01%

Volatility

LTFIX vs. SWMRX - Volatility Comparison

Principal LifeTime 2055 Fund (LTFIX) has a higher volatility of 4.94% compared to Schwab Target 2045 Fund (SWMRX) at 4.52%. This indicates that LTFIX's price experiences larger fluctuations and is considered to be riskier than SWMRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LTFIX	SWMRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.94%	4.52%	+0.42%
Volatility (6M) Calculated over the trailing 6-month period	10.36%	9.39%	+0.97%
Volatility (1Y) Calculated over the trailing 1-year period	12.53%	11.46%	+1.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.57%	15.50%	+0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.88%	15.54%	+0.34%

LTFIX vs. SWMRX - Expense Ratio Comparison

LTFIX has a 0.01% expense ratio, which is higher than SWMRX's 0.00% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LTFIX vs. SWMRX - Dividend Comparison

LTFIX's dividend yield for the trailing twelve months is around 8.01%, more than SWMRX's 4.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LTFIX Principal LifeTime 2055 Fund	8.01%	8.73%	8.47%	4.17%	8.60%	5.83%	3.91%	6.03%	6.60%	3.51%	3.99%	4.51%
SWMRX Schwab Target 2045 Fund	4.71%	5.18%	3.14%	2.98%	7.88%	5.18%	2.45%	5.46%	6.63%	2.79%	5.28%	5.76%

Frequently Asked Questions

Can I hold both LTFIX and SWMRX in my portfolio?

With a correlation of 0.97, LTFIX and SWMRX 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, LTFIX or SWMRX?

LTFIX has higher volatility (4.94%) compared to SWMRX (4.52%). In terms of maximum drawdown, LTFIX dropped -52.73% vs SWMRX's -30.41%.

Which has better risk-adjusted returns?

SWMRX currently has the higher Sharpe Ratio (2.07 vs 1.75), 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.