PHTFX vs. PTEAX

Last updated Jun 3, 2026

PHTFX (Principal LifeTime Hybrid Income Fund) and PTEAX (Principal Tax-Exempt Bond Fund) are both mutual funds - PHTFX is a Target Retirement Date fund managed by Principal, while PTEAX is a Municipal Bonds fund managed by Principal. Over the past 10 years, PHTFX returned 5.12%/yr vs 1.99%/yr for PTEAX. At a 0.20 correlation, their price movements are largely independent. PHTFX charges 0.05%/yr vs 0.73%/yr for PTEAX.

Performance

PHTFX vs. PTEAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal LifeTime Hybrid Income Fund (PHTFX) 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, PHTFX achieves a 4.66% return, which is significantly higher than PTEAX's 1.23% return. Over the past 10 years, PHTFX has outperformed PTEAX with an annualized return of 5.12%, while PTEAX has yielded a comparatively lower 1.99% annualized return.

PHTFX

• 1D: 0.17%
• 1M: 1.78%
• YTD: 4.66%
• 6M: 5.00%
• 1Y: 13.03%
• 3Y*: 9.76%
• 5Y*: 4.25%
• 10Y*: 5.12%

PTEAX

• 1D: 0.00%
• 1M: 0.62%
• YTD: 1.23%
• 6M: 1.56%
• 1Y: 6.65%
• 3Y*: 3.89%
• 5Y*: 0.33%
• 10Y*: 1.99%

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

PHTFX vs. PTEAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PHTFX Principal LifeTime Hybrid Income Fund	4.66%	11.14%	7.52%	10.77%	-13.22%	5.13%	10.11%	11.82%	-2.75%	7.62%
PTEAX Principal Tax-Exempt Bond Fund	1.23%	4.68%	2.10%	6.35%	-12.18%	2.71%	4.80%	9.05%	0.44%	6.44%

Correlation

The correlation between PHTFX and PTEAX is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (10Y) Calculated over the trailing 10-year period	0.22
Correlation (All Time) Calculated using the full available price history since Oct 2, 2014	0.20

The correlation between PHTFX and PTEAX shifts across timeframes, from 0.20 (all time) to 0.31 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

PHTFX vs. PTEAX — Risk / Return Rank

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

PHTFX

PHTFX Risk / Return Rank: 74
PHTFX Sharpe Ratio Rank: 72
PHTFX Sortino Ratio Rank: 75
PHTFX Omega Ratio Rank: 77
PHTFX Calmar Ratio Rank: 69
PHTFX Martin Ratio Rank: 77

PTEAX

PTEAX Risk / Return Rank: 56
PTEAX Sharpe Ratio Rank: 56
PTEAX Sortino Ratio Rank: 74
PTEAX Omega Ratio Rank: 84
PTEAX Calmar Ratio Rank: 33
PTEAX Martin Ratio Rank: 32

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.

PHTFX vs. PTEAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal LifeTime Hybrid Income Fund (PHTFX) 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.

	PHTFX	PTEAX	Difference
Sharpe ratio Return per unit of total volatility	2.47	2.21	+0.26
Sortino ratio Return per unit of downside risk	3.61	3.60	+0.01
Omega ratio Gain probability vs. loss probability	1.50	1.57	-0.07
Calmar ratio Return relative to maximum drawdown	3.20	2.21	+1.00
Martin ratio Return relative to average drawdown	14.57	7.47	+7.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PHTFX vs. PTEAX - Sharpe Ratio Comparison

The current PHTFX Sharpe Ratio is 2.47, which is comparable to the PTEAX Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of PHTFX 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.

Sharpe Ratios by Period

	PHTFX	PTEAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.47	2.21	+0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.63	0.08	+0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	0.45	+0.38
Sharpe Ratio (All Time) Calculated using the full available price history	0.81	0.32	+0.50

Drawdowns

PHTFX vs. PTEAX - Drawdown Comparison

The maximum PHTFX drawdown since its inception was -17.26%, smaller than the maximum PTEAX drawdown of -38.72%. Use the drawdown chart below to compare losses from any high point for PHTFX and PTEAX.

Drawdown Indicators

	PHTFX	PTEAX	Difference
Max Drawdown Largest peak-to-trough decline	-17.26%	-38.72%	+21.46%
Max Drawdown (1Y) Largest decline over 1 year	-4.10%	-3.10%	-1.00%
Max Drawdown (3Y) Largest decline over 3 years	-6.04%	-5.31%	-0.73%
Max Drawdown (5Y) Largest decline over 5 years	-17.26%	-17.37%	+0.11%
Max Drawdown (10Y) Largest decline over 10 years	-17.26%	-17.37%	+0.11%
Current Drawdown Current decline from peak	0.00%	-0.70%	+0.70%
Average Drawdown Average peak-to-trough decline	-2.57%	-5.93%	+3.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	0.92%	-0.02%

Volatility

PHTFX vs. PTEAX - Volatility Comparison

Principal LifeTime Hybrid Income Fund (PHTFX) has a higher volatility of 1.80% compared to Principal Tax-Exempt Bond Fund (PTEAX) at 1.02%. This indicates that PHTFX'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

	PHTFX	PTEAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.80%	1.02%	+0.78%
Volatility (6M) Calculated over the trailing 6-month period	4.32%	2.12%	+2.20%
Volatility (1Y) Calculated over the trailing 1-year period	5.30%	2.95%	+2.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.82%	4.00%	+2.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.16%	4.40%	+1.76%

PHTFX vs. PTEAX - Expense Ratio Comparison

PHTFX has a 0.05% expense ratio, which is lower than PTEAX's 0.73% expense ratio.

Dividends

PHTFX vs. PTEAX - Dividend Comparison

PHTFX's dividend yield for the trailing twelve months is around 4.34%, more than PTEAX's 3.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PHTFX Principal LifeTime Hybrid Income Fund	4.34%	4.54%	3.34%	3.60%	5.20%	5.57%	4.92%	2.96%	2.07%	2.43%	1.41%	1.52%
PTEAX Principal Tax-Exempt Bond Fund	3.83%	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 PHTFX and PTEAX in my portfolio?

PHTFX and PTEAX have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PHTFX or PTEAX?

PHTFX has higher volatility (1.80%) compared to PTEAX (1.02%). In terms of maximum drawdown, PHTFX dropped -17.26% vs PTEAX's -38.72%.

Which has better risk-adjusted returns?

PHTFX currently has the higher Sharpe Ratio (2.47 vs 2.21), 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.