LTRIX vs. PTEAX

Last updated Aug 4, 2026

LTRIX (Principal LifeTime 2045 Fund) and PTEAX (Principal Tax-Exempt Bond Fund) are both mutual funds - LTRIX is a Target Retirement Date fund managed by Principal, while PTEAX is a Municipal Bonds fund managed by Principal. Over the past 10 years, LTRIX returned 10.78%/yr vs 1.73%/yr for PTEAX. Their -0.07 correlation means they have often moved in opposite directions in the past. LTRIX charges 0.01%/yr vs 0.73%/yr for PTEAX.

Performance

LTRIX vs. PTEAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal LifeTime 2045 Fund (LTRIX) and Principal Tax-Exempt Bond Fund (PTEAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LTRIX achieves a 8.14% return, which is significantly higher than PTEAX's 0.02% return. Over the past 10 years, LTRIX has outperformed PTEAX with an annualized return of 10.78%, while PTEAX has yielded a comparatively lower 1.73% annualized return.

LTRIX

• 1D: 0.30%
• 1M: 0.61%
• 6M: 5.04%
• YTD: 8.14%
• 1Y: 16.71%
• 3Y*: 15.51%
• 5Y*: 8.20%
• 10Y*: 10.78%
• ALL TIME*: 8.19%

PTEAX

• 1D: 0.00%
• 1M: -1.94%
• 6M: -0.89%
• YTD: 0.02%
• 1Y: 4.69%
• 3Y*: 3.14%
• 5Y*: -0.20%
• 10Y*: 1.73%
• ALL TIME*: 1.90%

*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)
LTRIX Principal LifeTime 2045 Fund	$0.00	$0.00	$0.00
PTEAX Principal Tax-Exempt Bond Fund	$0.00	$0.00	$0.00

LTRIX vs. PTEAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LTRIX Principal LifeTime 2045 Fund	8.14%	16.69%	16.90%	19.40%	-18.51%	16.55%	16.33%	25.81%	-8.34%	21.38%
PTEAX Principal Tax-Exempt Bond Fund	0.02%	4.68%	2.10%	6.35%	-12.18%	2.71%	4.80%	9.05%	0.44%	6.44%

Correlation

The correlation between LTRIX and PTEAX is 0.23, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.23
Correlation (3Y) Balances recent behavior with more history.	0.18
Correlation (5Y) Shows whether the relationship held over a longer period.	0.15
Correlation (10Y) Provides a long-term view across more market conditions.	0.06
Correlation (All Time) Calculated using the full available price history since Mar 3, 2008	-0.07

The correlation between LTRIX and PTEAX shifts across timeframes, from -0.07 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

LTRIX vs. PTEAX — Risk / Return Rank

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

LTRIX

LTRIX Risk / Return Rank: 47
LTRIX Sharpe Ratio Rank: 43
LTRIX Sortino Ratio Rank: 42
LTRIX Omega Ratio Rank: 42
LTRIX Calmar Ratio Rank: 47
LTRIX Martin Ratio Rank: 60

PTEAX

PTEAX Risk / Return Rank: 61
PTEAX Sharpe Ratio Rank: 72
PTEAX Sortino Ratio Rank: 77
PTEAX Omega Ratio Rank: 86
PTEAX Calmar Ratio Rank: 35
PTEAX Martin Ratio Rank: 33

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.

LTRIX vs. PTEAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal LifeTime 2045 Fund (LTRIX) and Principal Tax-Exempt Bond Fund (PTEAX). 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.

	LTRIX	PTEAX	Difference
Sharpe ratio: Return per unit of total volatility	1.34	1.76	-0.42
Sortino ratio: Return per unit of downside risk	1.92	2.73	-0.81
Omega ratio: Gain probability vs. loss probability	1.25	1.44	-0.19
Calmar ratio: Return relative to maximum drawdown	1.95	1.62	+0.32
Martin ratio: Return relative to average drawdown	8.33	5.28	+3.05

LTRIX vs. PTEAX - Sharpe Ratio Comparison

The current LTRIX Sharpe Ratio is 1.34, which is comparable to the PTEAX Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of LTRIX and PTEAX, 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

LTRIX vs. PTEAX - Drawdown Comparison

The maximum LTRIX drawdown since its inception was -51.39%, which is greater than PTEAX's maximum drawdown of -38.72%. Use the drawdown chart below to compare losses from any high point for LTRIX and PTEAX.

Drawdown Indicators

	LTRIX	PTEAX	Difference
Max Drawdown Largest peak-to-trough decline	-51.39%	-38.72%	-12.67%
Max Drawdown (1Y) Largest decline over 1 year	-8.04%	-3.10%	-4.94%
Max Drawdown (3Y) Largest decline over 3 years	-14.47%	-5.08%	-9.39%
Max Drawdown (5Y) Largest decline over 5 years	-26.25%	-17.37%	-8.88%
Max Drawdown (10Y) Largest decline over 10 years	-31.56%	-17.37%	-14.19%
Current Drawdown Current decline from peak	-0.54%	-1.94%	+1.40%
Average Drawdown Average peak-to-trough decline	-7.15%	-5.91%	-1.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.88%	0.95%	+0.93%

Volatility

LTRIX vs. PTEAX - Volatility Comparison

Principal LifeTime 2045 Fund (LTRIX) has a higher volatility of 3.13% compared to Principal Tax-Exempt Bond Fund (PTEAX) at 0.92%. This indicates that LTRIX's price experiences larger fluctuations and is considered to be riskier than PTEAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LTRIX	PTEAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.13%	0.92%	+2.21%
Volatility (6M) Calculated over the trailing 6-month period	9.66%	2.26%	+7.40%
Volatility (1Y) Calculated over the trailing 1-year period	11.66%	2.93%	+8.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.70%	4.02%	+10.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.77%	4.40%	+10.37%

LTRIX vs. PTEAX - Expense Ratio Comparison

LTRIX has a 0.01% expense ratio, which is lower than PTEAX's 0.73% expense ratio.

Dividends

LTRIX vs. PTEAX - Dividend Comparison

LTRIX's dividend yield for the trailing twelve months is around 8.61%, more than PTEAX's 3.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LTRIX Principal LifeTime 2045 Fund	8.61%	9.31%	9.40%	4.25%	8.71%	6.75%	4.62%	6.93%	7.50%	4.57%	4.48%	5.42%
PTEAX Principal Tax-Exempt Bond Fund	3.56%	4.66%	3.73%	2.81%	2.27%	2.15%	2.23%	3.09%	3.68%	3.69%	3.91%	3.75%

Frequently Asked Questions

Can I hold both LTRIX and PTEAX in my portfolio?

LTRIX and PTEAX have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LTRIX or PTEAX?

LTRIX has higher volatility (3.13%) compared to PTEAX (0.92%). In terms of maximum drawdown, LTRIX dropped -51.39% vs PTEAX's -38.72%.

Which has better risk-adjusted returns?

PTEAX currently has the higher Sharpe Ratio (1.76 vs 1.34), 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.