PNIIX vs. PCGTX

Last updated Jun 24, 2026

PNIIX (Principal Bond Market Index Fund) and PCGTX (PACE Mortgage-Backed Securities Fixed Income Investments) are both Intermediate Core Bond funds. Over the past 10 years, PNIIX returned 1.38%/yr vs 1.52%/yr for PCGTX. Their correlation of 0.81 suggests significant overlap in exposure. PNIIX charges 0.15%/yr vs 0.73%/yr for PCGTX.

Performance

PNIIX vs. PCGTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Bond Market Index Fund (PNIIX) and PACE Mortgage-Backed Securities Fixed Income Investments (PCGTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PNIIX achieves a 0.35% return, which is significantly lower than PCGTX's 2.92% return. Over the past 10 years, PNIIX has underperformed PCGTX with an annualized return of 1.38%, while PCGTX has yielded a comparatively higher 1.52% annualized return.

PNIIX

• 1D: -0.23%
• 1M: 0.59%
• YTD: 0.35%
• 6M: 0.35%
• 1Y: 4.13%
• 3Y*: 3.77%
• 5Y*: -0.07%
• 10Y*: 1.38%

PCGTX

• 1D: -0.28%
• 1M: 0.67%
• YTD: 2.92%
• 6M: 3.12%
• 1Y: 8.12%
• 3Y*: 4.76%
• 5Y*: 0.36%
• 10Y*: 1.52%

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

PNIIX vs. PCGTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PNIIX Principal Bond Market Index Fund	0.35%	7.01%	1.17%	5.55%	-13.26%	-1.68%	7.28%	8.47%	-0.20%	3.31%
PCGTX PACE Mortgage-Backed Securities Fixed Income Investments	2.92%	7.84%	0.98%	5.12%	-13.48%	-0.61%	5.75%	6.55%	0.17%	2.83%

Correlation

The correlation between PNIIX and PCGTX is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Dec 31, 2009	0.81

The correlation between PNIIX and PCGTX has been stable across timeframes, ranging from 0.81 to 0.91 - a consistent structural relationship.

Return for Risk

PNIIX vs. PCGTX — Risk / Return Rank

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

PNIIX

PNIIX Risk / Return Rank: 20
PNIIX Sharpe Ratio Rank: 19
PNIIX Sortino Ratio Rank: 20
PNIIX Omega Ratio Rank: 18
PNIIX Calmar Ratio Rank: 22
PNIIX Martin Ratio Rank: 19

PCGTX

PCGTX Risk / Return Rank: 49
PCGTX Sharpe Ratio Rank: 35
PCGTX Sortino Ratio Rank: 52
PCGTX Omega Ratio Rank: 49
PCGTX Calmar Ratio Rank: 63
PCGTX Martin Ratio Rank: 48

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.

PNIIX vs. PCGTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Bond Market Index Fund (PNIIX) and PACE Mortgage-Backed Securities Fixed Income Investments (PCGTX). 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.

	PNIIX	PCGTX	Difference
Sharpe ratio: Return per unit of total volatility	1.15	1.60	-0.45
Sortino ratio: Return per unit of downside risk	1.74	2.78	-1.04
Omega ratio: Gain probability vs. loss probability	1.20	1.35	-0.14
Calmar ratio: Return relative to maximum drawdown	1.59	2.91	-1.33
Martin ratio: Return relative to average drawdown	4.56	9.45	-4.89

PNIIX vs. PCGTX - Sharpe Ratio Comparison

The current PNIIX Sharpe Ratio is 1.15, which is comparable to the PCGTX Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of PNIIX and PCGTX, 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

PNIIX vs. PCGTX - Drawdown Comparison

The maximum PNIIX drawdown since its inception was -18.76%, roughly equal to the maximum PCGTX drawdown of -19.34%. Use the drawdown chart below to compare losses from any high point for PNIIX and PCGTX.

Drawdown Indicators

	PNIIX	PCGTX	Difference
Max Drawdown Largest peak-to-trough decline	-18.76%	-19.34%	+0.58%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-3.09%	+0.33%
Max Drawdown (3Y) Largest decline over 3 years	-6.25%	-7.94%	+1.69%
Max Drawdown (5Y) Largest decline over 5 years	-18.14%	-19.20%	+1.06%
Max Drawdown (10Y) Largest decline over 10 years	-18.76%	-19.34%	+0.58%
Current Drawdown Current decline from peak	-2.76%	-1.40%	-1.36%
Average Drawdown Average peak-to-trough decline	-3.44%	-1.85%	-1.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.92%	+0.04%

Volatility

PNIIX vs. PCGTX - Volatility Comparison

The current volatility for Principal Bond Market Index Fund (PNIIX) is 1.15%, while PACE Mortgage-Backed Securities Fixed Income Investments (PCGTX) has a volatility of 1.48%. This indicates that PNIIX experiences smaller price fluctuations and is considered to be less risky than PCGTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PNIIX	PCGTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.15%	1.48%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	2.82%	4.54%	-1.72%
Volatility (1Y) Calculated over the trailing 1-year period	3.83%	5.63%	-1.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.32%	7.18%	-0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.09%	5.40%	-0.31%

PNIIX vs. PCGTX - Expense Ratio Comparison

PNIIX has a 0.15% expense ratio, which is lower than PCGTX's 0.73% expense ratio.

Dividends

PNIIX vs. PCGTX - Dividend Comparison

PNIIX's dividend yield for the trailing twelve months is around 4.00%, less than PCGTX's 4.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PCGTX PACE Mortgage-Backed Securities Fixed Income Investments	4.48%	3.78%	5.36%	5.02%	3.67%	2.87%	3.23%	3.53%	3.34%	2.96%	2.71%	2.21%
PNIIX Principal Bond Market Index Fund	4.00%	4.01%	3.60%	4.18%	1.66%	2.03%	18.60%	2.40%	2.51%	2.35%	1.78%	2.10%

Frequently Asked Questions

Can I hold both PNIIX and PCGTX in my portfolio?

PNIIX and PCGTX have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PNIIX or PCGTX?

PCGTX has higher volatility (1.48%) compared to PNIIX (1.15%). In terms of maximum drawdown, PNIIX dropped -18.76% vs PCGTX's -19.34%.

Which has better risk-adjusted returns?

PCGTX currently has the higher Sharpe Ratio (1.60 vs 1.15), 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.