PLTQX vs. PSSMX

Last updated Jun 25, 2026

PLTQX (Principal LifeTime Hybrid 2040 Fund) and PSSMX (Principal SmallCap S&P 600 Index Fund) are both mutual funds - PLTQX is a Target Retirement Date fund managed by Principal, while PSSMX is a Small Cap Blend Equities fund managed by Principal. Over the past 10 years, PLTQX returned 10.62%/yr vs 11.38%/yr for PSSMX. Their correlation of 0.84 suggests significant overlap in exposure. PLTQX charges 0.05%/yr vs 0.73%/yr for PSSMX.

Performance

PLTQX vs. PSSMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal LifeTime Hybrid 2040 Fund (PLTQX) and Principal SmallCap S&P 600 Index Fund (PSSMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PLTQX achieves a 6.97% return, which is significantly lower than PSSMX's 18.95% return. Over the past 10 years, PLTQX has underperformed PSSMX with an annualized return of 10.62%, while PSSMX has yielded a comparatively higher 11.38% annualized return.

PLTQX

• 1D: -1.45%
• 1M: -0.17%
• YTD: 6.97%
• 6M: 6.24%
• 1Y: 18.26%
• 3Y*: 15.93%
• 5Y*: 8.09%
• 10Y*: 10.62%

PSSMX

• 1D: -0.33%
• 1M: 4.16%
• YTD: 18.95%
• 6M: 16.08%
• 1Y: 32.43%
• 3Y*: 18.44%
• 5Y*: 7.23%
• 10Y*: 11.38%

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

PLTQX vs. PSSMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PLTQX Principal LifeTime Hybrid 2040 Fund	6.97%	17.25%	14.58%	18.16%	-17.90%	17.09%	15.41%	23.86%	-8.61%	19.16%
PSSMX Principal SmallCap S&P 600 Index Fund	18.95%	5.34%	16.60%	15.18%	-16.69%	25.39%	10.65%	21.99%	-9.42%	12.46%

Correlation

The correlation between PLTQX and PSSMX is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Oct 1, 2014	0.84

The correlation between PLTQX and PSSMX has been stable across timeframes, ranging from 0.80 to 0.86 - a consistent structural relationship.

Return for Risk

PLTQX vs. PSSMX — Risk / Return Rank

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

PLTQX

PLTQX Risk / Return Rank: 57
PLTQX Sharpe Ratio Rank: 52
PLTQX Sortino Ratio Rank: 50
PLTQX Omega Ratio Rank: 53
PLTQX Calmar Ratio Rank: 59
PLTQX Martin Ratio Rank: 70

PSSMX

PSSMX Risk / Return Rank: 64
PSSMX Sharpe Ratio Rank: 53
PSSMX Sortino Ratio Rank: 57
PSSMX Omega Ratio Rank: 47
PSSMX Calmar Ratio Rank: 86
PSSMX Martin Ratio Rank: 76

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.

PLTQX vs. PSSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal LifeTime Hybrid 2040 Fund (PLTQX) and Principal SmallCap S&P 600 Index Fund (PSSMX). 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.

	PLTQX	PSSMX	Difference
Sharpe ratio: Return per unit of total volatility	1.85	1.92	-0.08
Sortino ratio: Return per unit of downside risk	2.59	2.81	-0.22
Omega ratio: Gain probability vs. loss probability	1.34	1.33	+0.01
Calmar ratio: Return relative to maximum drawdown	2.69	3.88	-1.18
Martin ratio: Return relative to average drawdown	11.97	13.06	-1.09

PLTQX vs. PSSMX - Sharpe Ratio Comparison

The current PLTQX Sharpe Ratio is 1.85, which is comparable to the PSSMX Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of PLTQX and PSSMX, 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

PLTQX vs. PSSMX - Drawdown Comparison

The maximum PLTQX drawdown since its inception was -29.05%, smaller than the maximum PSSMX drawdown of -58.43%. Use the drawdown chart below to compare losses from any high point for PLTQX and PSSMX.

Drawdown Indicators

	PLTQX	PSSMX	Difference
Max Drawdown Largest peak-to-trough decline	-29.05%	-58.43%	+29.38%
Max Drawdown (1Y) Largest decline over 1 year	-7.29%	-8.76%	+1.47%
Max Drawdown (3Y) Largest decline over 3 years	-13.75%	-24.30%	+10.55%
Max Drawdown (5Y) Largest decline over 5 years	-24.18%	-27.01%	+2.83%
Max Drawdown (10Y) Largest decline over 10 years	-29.05%	-44.85%	+15.80%
Current Drawdown Current decline from peak	-2.22%	-0.36%	-1.86%
Average Drawdown Average peak-to-trough decline	-4.39%	-9.50%	+5.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.64%	2.60%	-0.96%

Volatility

PLTQX vs. PSSMX - Volatility Comparison

The current volatility for Principal LifeTime Hybrid 2040 Fund (PLTQX) is 4.40%, while Principal SmallCap S&P 600 Index Fund (PSSMX) has a volatility of 4.92%. This indicates that PLTQX experiences smaller price fluctuations and is considered to be less risky than PSSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PLTQX	PSSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	4.92%	-0.52%
Volatility (6M) Calculated over the trailing 6-month period	8.79%	12.11%	-3.32%
Volatility (1Y) Calculated over the trailing 1-year period	10.65%	17.69%	-7.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.48%	21.76%	-8.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.79%	22.91%	-9.12%

PLTQX vs. PSSMX - Expense Ratio Comparison

PLTQX has a 0.05% expense ratio, which is lower than PSSMX's 0.73% expense ratio.

Dividends

PLTQX vs. PSSMX - Dividend Comparison

PLTQX's dividend yield for the trailing twelve months is around 4.21%, less than PSSMX's 8.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PLTQX Principal LifeTime Hybrid 2040 Fund	4.21%	4.50%	4.19%	3.14%	8.95%	5.00%	3.85%	3.84%	4.47%	2.37%	2.34%	1.65%
PSSMX Principal SmallCap S&P 600 Index Fund	8.39%	9.98%	15.91%	3.75%	10.45%	8.23%	1.67%	6.56%	13.08%	6.03%	6.15%	8.07%

Frequently Asked Questions

Can I hold both PLTQX and PSSMX in my portfolio?

PLTQX and PSSMX have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PLTQX or PSSMX?

PSSMX has higher volatility (4.92%) compared to PLTQX (4.40%). In terms of maximum drawdown, PLTQX dropped -29.05% vs PSSMX's -58.43%.

Which has better risk-adjusted returns?

PSSMX currently has the higher Sharpe Ratio (1.92 vs 1.85), 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.