PAFTX vs. PTDIX

Last updated Jun 4, 2026

PAFTX (T. Rowe Price Target 2055 Fund) and PTDIX (Principal LifeTime 2040 Fund) are both Target Retirement Date funds. Over the past 10 years, PAFTX returned 11.16%/yr vs 10.55%/yr for PTDIX. With a 0.96 correlation, they move nearly in lockstep. PAFTX charges 0.89%/yr vs 0.01%/yr for PTDIX.

Performance

PAFTX vs. PTDIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Target 2055 Fund (PAFTX) and Principal LifeTime 2040 Fund (PTDIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAFTX achieves a 11.47% return, which is significantly higher than PTDIX's 7.80% return. Over the past 10 years, PAFTX has outperformed PTDIX with an annualized return of 11.16%, while PTDIX has yielded a comparatively lower 10.55% annualized return.

PAFTX

• 1D: 0.48%
• 1M: 4.54%
• YTD: 11.47%
• 6M: 12.13%
• 1Y: 25.52%
• 3Y*: 18.26%
• 5Y*: 8.86%
• 10Y*: 11.16%

PTDIX

• 1D: 0.34%
• 1M: 3.88%
• YTD: 7.80%
• 6M: 8.09%
• 1Y: 19.26%
• 3Y*: 17.13%
• 5Y*: 8.31%
• 10Y*: 10.55%

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

PAFTX vs. PTDIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAFTX T. Rowe Price Target 2055 Fund	11.47%	18.41%	13.80%	20.29%	-19.48%	16.76%	18.05%	24.60%	-7.72%	20.49%
PTDIX Principal LifeTime 2040 Fund	7.80%	15.59%	17.43%	18.33%	-18.13%	15.35%	16.04%	24.91%	-7.95%	20.69%

Correlation

The correlation between PAFTX and PTDIX 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	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Aug 23, 2013	0.96

The correlation between PAFTX and PTDIX has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

Return for Risk

PAFTX vs. PTDIX — Risk / Return Rank

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

PAFTX

PAFTX Risk / Return Rank: 56
PAFTX Sharpe Ratio Rank: 56
PAFTX Sortino Ratio Rank: 55
PAFTX Omega Ratio Rank: 57
PAFTX Calmar Ratio Rank: 53
PAFTX Martin Ratio Rank: 61

PTDIX

PTDIX Risk / Return Rank: 50
PTDIX Sharpe Ratio Rank: 46
PTDIX Sortino Ratio Rank: 46
PTDIX Omega Ratio Rank: 47
PTDIX Calmar Ratio Rank: 49
PTDIX Martin Ratio Rank: 60

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.

PAFTX vs. PTDIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Target 2055 Fund (PAFTX) and Principal LifeTime 2040 Fund (PTDIX). 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.

	PAFTX	PTDIX	Difference
Sharpe ratio: Return per unit of total volatility	2.23	2.00	+0.22
Sortino ratio: Return per unit of downside risk	3.14	2.84	+0.30
Omega ratio: Gain probability vs. loss probability	1.42	1.37	+0.05
Calmar ratio: Return relative to maximum drawdown	2.78	2.68	+0.09
Martin ratio: Return relative to average drawdown	12.12	11.94	+0.18
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PAFTX vs. PTDIX - Sharpe Ratio Comparison

The current PAFTX Sharpe Ratio is 2.23, which is comparable to the PTDIX Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of PAFTX and PTDIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PAFTX	PTDIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.23	2.00	+0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.59	0.62	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.74	0.77	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.70	0.48	+0.22

Drawdowns

PAFTX vs. PTDIX - Drawdown Comparison

The maximum PAFTX drawdown since its inception was -31.88%, smaller than the maximum PTDIX drawdown of -54.38%. Use the drawdown chart below to compare losses from any high point for PAFTX and PTDIX.

Drawdown Indicators

	PAFTX	PTDIX	Difference
Max Drawdown Largest peak-to-trough decline	-31.88%	-54.38%	+22.50%
Max Drawdown (1Y) Largest decline over 1 year	-9.62%	-7.32%	-2.30%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-13.05%	-2.68%
Max Drawdown (5Y) Largest decline over 5 years	-28.15%	-25.43%	-2.72%
Max Drawdown (10Y) Largest decline over 10 years	-31.88%	-30.02%	-1.86%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.96%	-7.49%	+2.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.17%	1.64%	+0.53%

Volatility

PAFTX vs. PTDIX - Volatility Comparison

T. Rowe Price Target 2055 Fund (PAFTX) has a higher volatility of 3.43% compared to Principal LifeTime 2040 Fund (PTDIX) at 2.89%. This indicates that PAFTX's price experiences larger fluctuations and is considered to be riskier than PTDIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAFTX	PTDIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.43%	2.89%	+0.54%
Volatility (6M) Calculated over the trailing 6-month period	9.91%	7.85%	+2.06%
Volatility (1Y) Calculated over the trailing 1-year period	12.02%	9.81%	+2.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.07%	13.49%	+1.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.25%	13.83%	+1.42%

PAFTX vs. PTDIX - Expense Ratio Comparison

PAFTX has a 0.89% expense ratio, which is higher than PTDIX's 0.01% expense ratio.

Dividends

PAFTX vs. PTDIX - Dividend Comparison

PAFTX's dividend yield for the trailing twelve months is around 4.03%, less than PTDIX's 9.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PAFTX T. Rowe Price Target 2055 Fund	4.03%	4.49%	2.19%	2.44%	5.01%	3.35%	2.42%	4.00%	5.86%	2.16%	2.64%	3.14%
PTDIX Principal LifeTime 2040 Fund	9.09%	9.80%	12.28%	4.40%	8.61%	8.92%	6.01%	7.26%	9.28%	6.07%	4.86%	6.73%

Frequently Asked Questions

Can I hold both PAFTX and PTDIX in my portfolio?

With a correlation of 0.95, PAFTX and PTDIX 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, PAFTX or PTDIX?

PAFTX has higher volatility (3.43%) compared to PTDIX (2.89%). In terms of maximum drawdown, PAFTX dropped -31.88% vs PTDIX's -54.38%.

Which has better risk-adjusted returns?

PAFTX currently has the higher Sharpe Ratio (2.23 vs 2.00), 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.