LTSTX vs. RFETX
LTSTX (Principal LifeTime 2025 Fund) and RFETX (American Funds 2030 Target Date Retirement Fund Class R6) are both Target Retirement Date funds. Over the past 10 years, LTSTX returned 8.19%/yr vs 9.58%/yr for RFETX. With a 0.97 correlation, they move nearly in lockstep. LTSTX charges 0.01%/yr vs 0.33%/yr for RFETX.
Performance
LTSTX vs. RFETX - Performance Comparison
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Returns By Period
In the year-to-date period, LTSTX achieves a 3.83% return, which is significantly lower than RFETX's 4.95% return. Over the past 10 years, LTSTX has underperformed RFETX with an annualized return of 8.19%, while RFETX has yielded a comparatively higher 9.58% annualized return.
LTSTX
- 1D
- -0.78%
- 1M
- 0.09%
- YTD
- 3.83%
- 6M
- 3.33%
- 1Y
- 10.62%
- 3Y*
- 11.63%
- 5Y*
- 5.22%
- 10Y*
- 8.19%
RFETX
- 1D
- -0.56%
- 1M
- 0.20%
- YTD
- 4.95%
- 6M
- 4.51%
- 1Y
- 13.22%
- 3Y*
- 13.15%
- 5Y*
- 6.72%
- 10Y*
- 9.58%
LTSTX vs. RFETX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LTSTX Principal LifeTime 2025 Fund | 3.83% | 12.16% | 11.91% | 13.30% | -15.23% | 10.91% | 13.70% | 20.50% | -6.41% | 16.75% |
RFETX American Funds 2030 Target Date Retirement Fund Class R6 | 4.95% | 15.73% | 10.86% | 14.52% | -14.50% | 13.22% | 15.17% | 20.03% | -4.14% | 18.53% |
Correlation
The correlation between LTSTX and RFETX is 0.95, 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since Jan 4, 2010 | 0.97 |
The correlation between LTSTX and RFETX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.
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Return for Risk
LTSTX vs. RFETX — Risk / Return Rank
LTSTX
RFETX
LTSTX vs. RFETX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal LifeTime 2025 Fund (LTSTX) and American Funds 2030 Target Date Retirement Fund Class R6 (RFETX). 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.
| LTSTX | RFETX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.25 | ||
| Sortino ratioReturn per unit of downside risk | -0.38 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.35 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.18 | 2.35 | -0.16 |
| Martin ratioReturn relative to average drawdown | 9.64 | 10.31 | -0.66 |
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Drawdowns
LTSTX vs. RFETX - Drawdown Comparison
The maximum LTSTX drawdown since its inception was -48.17%, which is greater than RFETX's maximum drawdown of -22.29%. Use the drawdown chart below to compare losses from any high point for LTSTX and RFETX.
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Drawdown Indicators
| LTSTX | RFETX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.17% | -22.29% | -25.88% |
Max Drawdown (1Y)Largest decline over 1 year | -5.24% | -6.08% | +0.84% |
Max Drawdown (3Y)Largest decline over 3 years | -8.12% | -8.68% | +0.56% |
Max Drawdown (5Y)Largest decline over 5 years | -21.01% | -20.81% | -0.20% |
Max Drawdown (10Y)Largest decline over 10 years | -23.33% | -22.29% | -1.04% |
Current DrawdownCurrent decline from peak | -1.30% | -1.15% | -0.15% |
Average DrawdownAverage peak-to-trough decline | -6.14% | -3.27% | -2.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.18% | 1.38% | -0.20% |
Volatility
LTSTX vs. RFETX - Volatility Comparison
Principal LifeTime 2025 Fund (LTSTX) and American Funds 2030 Target Date Retirement Fund Class R6 (RFETX) have volatilities of 2.86% and 2.82%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LTSTX | RFETX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.86% | 2.82% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 5.92% | 6.20% | -0.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.09% | 7.63% | -0.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.24% | 9.78% | -0.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.79% | 10.63% | -0.84% |
LTSTX vs. RFETX - Expense Ratio Comparison
LTSTX has a 0.01% expense ratio, which is lower than RFETX's 0.33% expense ratio.
Dividends
LTSTX vs. RFETX - Dividend Comparison
LTSTX's dividend yield for the trailing twelve months is around 11.74%, more than RFETX's 6.31% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LTSTX Principal LifeTime 2025 Fund | 11.74% | 12.19% | 9.74% | 4.26% | 8.00% | 7.66% | 5.25% | 6.91% | 6.39% | 4.75% | 3.65% | 8.91% |
RFETX American Funds 2030 Target Date Retirement Fund Class R6 | 6.31% | 6.62% | 4.04% | 3.00% | 4.73% | 6.77% | 3.86% | 4.26% | 4.81% | 2.86% | 3.77% | 5.83% |
Frequently Asked Questions
With a correlation of 0.95, LTSTX and RFETX 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.
LTSTX has higher volatility (2.86%) compared to RFETX (2.82%). In terms of maximum drawdown, LTSTX dropped -48.17% vs RFETX's -22.29%.
RFETX currently has the higher Sharpe Ratio (1.87 vs 1.62), 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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