PHTFX vs. URFRX

Last updated Aug 5, 2026

PHTFX (Principal LifeTime Hybrid Income Fund) and URFRX (USAA Target Retirement 2040 Fund) are both Target Retirement Date funds. Over the past 10 years, PHTFX returned 4.91%/yr vs 9.25%/yr for URFRX. Their correlation of 0.84 means they have usually moved in the same direction. PHTFX charges 0.05%/yr vs 0.02%/yr for URFRX.

Performance

PHTFX vs. URFRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal LifeTime Hybrid Income Fund (PHTFX) and USAA Target Retirement 2040 Fund (URFRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PHTFX achieves a 4.48% return, which is significantly lower than URFRX's 12.10% return. Over the past 10 years, PHTFX has underperformed URFRX with an annualized return of 4.91%, while URFRX has yielded a comparatively higher 9.25% annualized return.

PHTFX

• 1D: 0.35%
• 1M: 0.18%
• 6M: 2.97%
• YTD: 4.48%
• 1Y: 9.32%
• 3Y*: 9.29%
• 5Y*: 3.92%
• 10Y*: 4.91%
• ALL TIME*: 4.71%

URFRX

• 1D: 0.76%
• 1M: 1.27%
• 6M: 8.88%
• YTD: 12.10%
• 1Y: 20.54%
• 3Y*: 15.56%
• 5Y*: 8.35%
• 10Y*: 9.25%
• ALL TIME*: 7.89%

*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)
PHTFX Principal LifeTime Hybrid Income Fund	$0.00	$0.00	$0.00
URFRX USAA Target Retirement 2040 Fund	$0.00	$0.00	$0.00

PHTFX vs. URFRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PHTFX Principal LifeTime Hybrid Income Fund	4.48%	11.14%	7.52%	10.77%	-13.22%	5.13%	10.11%	11.82%	-2.75%	7.62%
URFRX USAA Target Retirement 2040 Fund	12.10%	17.49%	10.37%	16.75%	-14.86%	15.88%	9.22%	19.57%	-8.52%	18.48%

Correlation

The correlation between PHTFX and URFRX is 0.94, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.94
Correlation (3Y) Balances recent behavior with more history.	0.90
Correlation (5Y) Shows whether the relationship held over a longer period.	0.89
Correlation (10Y) Provides a long-term view across more market conditions.	0.85
Correlation (All Time) Calculated using the full available price history since Oct 1, 2014	0.84

The correlation between PHTFX and URFRX shifts across timeframes, from 0.84 (all time) to 0.94 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

PHTFX vs. URFRX — Risk / Return Rank

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

PHTFX

PHTFX Risk / Return Rank: 64
PHTFX Sharpe Ratio Rank: 59
PHTFX Sortino Ratio Rank: 61
PHTFX Omega Ratio Rank: 64
PHTFX Calmar Ratio Rank: 62
PHTFX Martin Ratio Rank: 74

URFRX

URFRX Risk / Return Rank: 86
URFRX Sharpe Ratio Rank: 86
URFRX Sortino Ratio Rank: 84
URFRX Omega Ratio Rank: 82
URFRX Calmar Ratio Rank: 86
URFRX Martin Ratio Rank: 91

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.

PHTFX vs. URFRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal LifeTime Hybrid Income Fund (PHTFX) and USAA Target Retirement 2040 Fund (URFRX). 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.

	PHTFX	URFRX	Difference
Sharpe ratio: Return per unit of total volatility	1.71	2.15	-0.44
Sortino ratio: Return per unit of downside risk	2.46	3.04	-0.58
Omega ratio: Gain probability vs. loss probability	1.33	1.40	-0.07
Calmar ratio: Return relative to maximum drawdown	2.43	3.19	-0.76
Martin ratio: Return relative to average drawdown	10.45	13.66	-3.21

PHTFX vs. URFRX - Sharpe Ratio Comparison

The current PHTFX Sharpe Ratio is 1.71, which is comparable to the URFRX Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of PHTFX and URFRX, 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

PHTFX vs. URFRX - Drawdown Comparison

The maximum PHTFX drawdown since its inception was -17.26%, smaller than the maximum URFRX drawdown of -39.33%. Use the drawdown chart below to compare losses from any high point for PHTFX and URFRX.

Drawdown Indicators

	PHTFX	URFRX	Difference
Max Drawdown Largest peak-to-trough decline	-17.26%	-39.33%	+22.07%
Max Drawdown (1Y) Largest decline over 1 year	-4.10%	-6.88%	+2.78%
Max Drawdown (3Y) Largest decline over 3 years	-5.97%	-12.41%	+6.44%
Max Drawdown (5Y) Largest decline over 5 years	-17.26%	-22.27%	+5.01%
Max Drawdown (10Y) Largest decline over 10 years	-17.26%	-28.59%	+11.33%
Current Drawdown Current decline from peak	-0.35%	0.00%	-0.35%
Average Drawdown Average peak-to-trough decline	-2.54%	-5.15%	+2.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	1.60%	-0.65%

Volatility

PHTFX vs. URFRX - Volatility Comparison

The current volatility for Principal LifeTime Hybrid Income Fund (PHTFX) is 1.61%, while USAA Target Retirement 2040 Fund (URFRX) has a volatility of 2.55%. This indicates that PHTFX experiences smaller price fluctuations and is considered to be less risky than URFRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PHTFX	URFRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.61%	2.55%	-0.94%
Volatility (6M) Calculated over the trailing 6-month period	4.91%	8.52%	-3.61%
Volatility (1Y) Calculated over the trailing 1-year period	5.83%	10.22%	-4.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.93%	12.41%	-5.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.21%	13.04%	-6.83%

PHTFX vs. URFRX - Expense Ratio Comparison

PHTFX has a 0.05% expense ratio, which is higher than URFRX's 0.02% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PHTFX vs. URFRX - Dividend Comparison

PHTFX's dividend yield for the trailing twelve months is around 4.35%, less than URFRX's 6.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PHTFX Principal LifeTime Hybrid Income Fund	4.35%	4.54%	3.34%	3.60%	5.20%	5.57%	4.92%	2.96%	2.07%	2.43%	1.41%	1.52%
URFRX USAA Target Retirement 2040 Fund	6.29%	7.05%	2.78%	3.94%	10.68%	7.78%	5.49%	12.74%	9.99%	6.53%	3.95%	2.55%

Frequently Asked Questions

Can I hold both PHTFX and URFRX in my portfolio?

With a correlation of 0.94, PHTFX and URFRX 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, PHTFX or URFRX?

URFRX has higher volatility (2.55%) compared to PHTFX (1.61%). In terms of maximum drawdown, PHTFX dropped -17.26% vs URFRX's -39.33%.

Which has better risk-adjusted returns?

URFRX currently has the higher Sharpe Ratio (2.15 vs 1.71), 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.