PLWIX vs. RFGTX

Last updated Jun 4, 2026

PLWIX (Principal LifeTime 2020 Fund) and RFGTX (American Funds 2040 Target Date Retirement Fund Class R6) are both Target Retirement Date funds. Over the past 10 years, PLWIX returned 7.37%/yr vs 11.86%/yr for RFGTX. With a 0.95 correlation, they move nearly in lockstep. PLWIX charges 0.01%/yr vs 0.36%/yr for RFGTX.

Performance

PLWIX vs. RFGTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal LifeTime 2020 Fund (PLWIX) and American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PLWIX achieves a 4.62% return, which is significantly lower than RFGTX's 9.16% return. Over the past 10 years, PLWIX has underperformed RFGTX with an annualized return of 7.37%, while RFGTX has yielded a comparatively higher 11.86% annualized return.

PLWIX

• 1D: 0.24%
• 1M: 2.26%
• YTD: 4.62%
• 6M: 4.75%
• 1Y: 12.52%
• 3Y*: 11.76%
• 5Y*: 5.37%
• 10Y*: 7.37%

RFGTX

• 1D: 0.20%
• 1M: 3.95%
• YTD: 9.16%
• 6M: 9.80%
• 1Y: 22.99%
• 3Y*: 18.15%
• 5Y*: 9.57%
• 10Y*: 11.86%

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

PLWIX vs. RFGTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PLWIX Principal LifeTime 2020 Fund	4.62%	11.32%	12.21%	12.23%	-14.36%	9.05%	12.70%	18.40%	-5.72%	14.96%
RFGTX American Funds 2040 Target Date Retirement Fund Class R6	9.16%	19.52%	14.80%	19.33%	-17.53%	16.88%	18.79%	24.37%	-5.51%	21.98%

Correlation

The correlation between PLWIX and RFGTX is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jan 5, 2010	0.95

The correlation between PLWIX and RFGTX has been stable across timeframes, ranging from 0.91 to 0.95 - a consistent structural relationship.

Return for Risk

PLWIX vs. RFGTX — Risk / Return Rank

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

PLWIX

PLWIX Risk / Return Rank: 55
PLWIX Sharpe Ratio Rank: 54
PLWIX Sortino Ratio Rank: 55
PLWIX Omega Ratio Rank: 57
PLWIX Calmar Ratio Rank: 49
PLWIX Martin Ratio Rank: 60

RFGTX

RFGTX Risk / Return Rank: 59
RFGTX Sharpe Ratio Rank: 60
RFGTX Sortino Ratio Rank: 58
RFGTX Omega Ratio Rank: 58
RFGTX Calmar Ratio Rank: 54
RFGTX Martin Ratio Rank: 64

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.

PLWIX vs. RFGTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal LifeTime 2020 Fund (PLWIX) and American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX). 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.

	PLWIX	RFGTX	Difference
Sharpe ratio: Return per unit of total volatility	2.17	2.27	-0.11
Sortino ratio: Return per unit of downside risk	3.13	3.21	-0.08
Omega ratio: Gain probability vs. loss probability	1.42	1.42	-0.01
Calmar ratio: Return relative to maximum drawdown	2.69	2.79	-0.11
Martin ratio: Return relative to average drawdown	11.98	12.62	-0.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PLWIX vs. RFGTX - Sharpe Ratio Comparison

The current PLWIX Sharpe Ratio is 2.17, which is comparable to the RFGTX Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of PLWIX and RFGTX, 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

	PLWIX	RFGTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.17	2.27	-0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.72	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.86	0.84	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.78	-0.25

Drawdowns

PLWIX vs. RFGTX - Drawdown Comparison

The maximum PLWIX drawdown since its inception was -49.07%, which is greater than RFGTX's maximum drawdown of -28.52%. Use the drawdown chart below to compare losses from any high point for PLWIX and RFGTX.

Drawdown Indicators

	PLWIX	RFGTX	Difference
Max Drawdown Largest peak-to-trough decline	-49.07%	-28.52%	-20.55%
Max Drawdown (1Y) Largest decline over 1 year	-4.75%	-8.39%	+3.64%
Max Drawdown (3Y) Largest decline over 3 years	-6.97%	-13.48%	+6.51%
Max Drawdown (5Y) Largest decline over 5 years	-19.73%	-24.85%	+5.12%
Max Drawdown (10Y) Largest decline over 10 years	-20.29%	-28.52%	+8.23%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-5.72%	-3.91%	-1.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.06%	1.85%	-0.79%

Volatility

PLWIX vs. RFGTX - Volatility Comparison

The current volatility for Principal LifeTime 2020 Fund (PLWIX) is 1.92%, while American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) has a volatility of 2.98%. This indicates that PLWIX experiences smaller price fluctuations and is considered to be less risky than RFGTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PLWIX	RFGTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.92%	2.98%	-1.06%
Volatility (6M) Calculated over the trailing 6-month period	4.79%	8.18%	-3.39%
Volatility (1Y) Calculated over the trailing 1-year period	5.89%	10.33%	-4.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.24%	13.27%	-5.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.57%	14.10%	-5.53%

PLWIX vs. RFGTX - Expense Ratio Comparison

PLWIX has a 0.01% expense ratio, which is lower than RFGTX's 0.36% expense ratio.

Dividends

PLWIX vs. RFGTX - Dividend Comparison

PLWIX's dividend yield for the trailing twelve months is around 9.63%, more than RFGTX's 5.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PLWIX Principal LifeTime 2020 Fund	9.63%	10.08%	11.91%	5.12%	9.82%	9.40%	5.90%	8.69%	7.35%	5.74%	3.73%	8.75%
RFGTX American Funds 2040 Target Date Retirement Fund Class R6	5.70%	6.22%	3.80%	2.81%	6.71%	5.22%	3.53%	4.59%	5.29%	2.70%	3.88%	5.43%

Frequently Asked Questions

Can I hold both PLWIX and RFGTX in my portfolio?

With a correlation of 0.92, PLWIX and RFGTX 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, PLWIX or RFGTX?

RFGTX has higher volatility (2.98%) compared to PLWIX (1.92%). In terms of maximum drawdown, PLWIX dropped -49.07% vs RFGTX's -28.52%.

Which has better risk-adjusted returns?

RFGTX currently has the higher Sharpe Ratio (2.27 vs 2.17), 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.