NWMSX vs. PPLIX

Last updated Jun 25, 2026

NWMSX (Nationwide Destination 2040 Fund) and PPLIX (Principal LifeTime 2050 Fund) are both Target Retirement Date funds. Over the past 10 years, NWMSX returned 8.95%/yr vs 11.73%/yr for PPLIX. With a 0.98 correlation, they move nearly in lockstep. NWMSX charges 0.38%/yr vs 0.01%/yr for PPLIX.

Performance

NWMSX vs. PPLIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nationwide Destination 2040 Fund (NWMSX) and Principal LifeTime 2050 Fund (PPLIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NWMSX achieves a 7.79% return, which is significantly higher than PPLIX's 6.58% return. Over the past 10 years, NWMSX has underperformed PPLIX with an annualized return of 8.95%, while PPLIX has yielded a comparatively higher 11.73% annualized return.

NWMSX

• 1D: -1.53%
• 1M: -0.10%
• YTD: 7.79%
• 6M: 7.01%
• 1Y: 18.79%
• 3Y*: 15.51%
• 5Y*: 7.36%
• 10Y*: 8.95%

PPLIX

• 1D: -1.73%
• 1M: -0.36%
• YTD: 6.58%
• 6M: 5.81%
• 1Y: 16.94%
• 3Y*: 17.92%
• 5Y*: 8.79%
• 10Y*: 11.73%

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

NWMSX vs. PPLIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NWMSX Nationwide Destination 2040 Fund	7.79%	17.51%	11.63%	18.59%	-18.29%	15.03%	13.50%	19.70%	-8.44%	10.47%
PPLIX Principal LifeTime 2050 Fund	6.58%	17.55%	19.12%	20.36%	-18.78%	17.04%	16.56%	26.67%	-8.74%	22.12%

Correlation

The correlation between NWMSX and PPLIX 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	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Aug 30, 2007	0.98

The correlation between NWMSX and PPLIX has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

NWMSX vs. PPLIX — Risk / Return Rank

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

NWMSX

NWMSX Risk / Return Rank: 59
NWMSX Sharpe Ratio Rank: 57
NWMSX Sortino Ratio Rank: 57
NWMSX Omega Ratio Rank: 56
NWMSX Calmar Ratio Rank: 59
NWMSX Martin Ratio Rank: 68

PPLIX

PPLIX Risk / Return Rank: 37
PPLIX Sharpe Ratio Rank: 34
PPLIX Sortino Ratio Rank: 32
PPLIX Omega Ratio Rank: 34
PPLIX Calmar Ratio Rank: 38
PPLIX Martin Ratio Rank: 50

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.

NWMSX vs. PPLIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nationwide Destination 2040 Fund (NWMSX) and Principal LifeTime 2050 Fund (PPLIX). 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.

	NWMSX	PPLIX	Difference
Sharpe ratio: Return per unit of total volatility	1.87	1.50	+0.38
Sortino ratio: Return per unit of downside risk	2.66	2.11	+0.55
Omega ratio: Gain probability vs. loss probability	1.34	1.28	+0.07
Calmar ratio: Return relative to maximum drawdown	2.60	2.15	+0.45
Martin ratio: Return relative to average drawdown	11.38	9.43	+1.95

NWMSX vs. PPLIX - Sharpe Ratio Comparison

The current NWMSX Sharpe Ratio is 1.87, which is comparable to the PPLIX Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of NWMSX and PPLIX, 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

NWMSX vs. PPLIX - Drawdown Comparison

The maximum NWMSX drawdown since its inception was -55.33%, roughly equal to the maximum PPLIX drawdown of -55.61%. Use the drawdown chart below to compare losses from any high point for NWMSX and PPLIX.

Drawdown Indicators

	NWMSX	PPLIX	Difference
Max Drawdown Largest peak-to-trough decline	-55.33%	-55.61%	+0.28%
Max Drawdown (1Y) Largest decline over 1 year	-7.75%	-8.57%	+0.82%
Max Drawdown (3Y) Largest decline over 3 years	-12.62%	-15.59%	+2.97%
Max Drawdown (5Y) Largest decline over 5 years	-30.39%	-26.85%	-3.54%
Max Drawdown (10Y) Largest decline over 10 years	-32.80%	-32.67%	-0.13%
Current Drawdown Current decline from peak	-1.99%	-2.63%	+0.64%
Average Drawdown Average peak-to-trough decline	-9.29%	-8.29%	-1.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.77%	1.95%	-0.18%

Volatility

NWMSX vs. PPLIX - Volatility Comparison

The current volatility for Nationwide Destination 2040 Fund (NWMSX) is 4.44%, while Principal LifeTime 2050 Fund (PPLIX) has a volatility of 5.03%. This indicates that NWMSX experiences smaller price fluctuations and is considered to be less risky than PPLIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NWMSX	PPLIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.44%	5.03%	-0.59%
Volatility (6M) Calculated over the trailing 6-month period	8.96%	10.22%	-1.26%
Volatility (1Y) Calculated over the trailing 1-year period	10.77%	12.36%	-1.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.34%	15.59%	-1.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.14%	15.57%	-0.43%

NWMSX vs. PPLIX - Expense Ratio Comparison

NWMSX has a 0.38% expense ratio, which is higher than PPLIX's 0.01% expense ratio.

Dividends

NWMSX vs. PPLIX - Dividend Comparison

NWMSX's dividend yield for the trailing twelve months is around 7.83%, less than PPLIX's 9.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NWMSX Nationwide Destination 2040 Fund	7.83%	8.66%	14.65%	6.81%	2.49%	9.45%	6.28%	7.29%	11.84%	1.98%	8.03%	5.32%
PPLIX Principal LifeTime 2050 Fund	9.34%	9.95%	11.56%	4.41%	9.40%	8.04%	5.23%	7.16%	8.64%	5.12%	4.82%	6.07%

Frequently Asked Questions

Can I hold both NWMSX and PPLIX in my portfolio?

With a correlation of 0.97, NWMSX and PPLIX 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, NWMSX or PPLIX?

PPLIX has higher volatility (5.03%) compared to NWMSX (4.44%). In terms of maximum drawdown, NWMSX dropped -55.33% vs PPLIX's -55.61%.

Which has better risk-adjusted returns?

NWMSX currently has the higher Sharpe Ratio (1.87 vs 1.50), 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.