PNIIX vs. PTEAX
PNIIX (Principal Bond Market Index Fund) and PTEAX (Principal Tax-Exempt Bond Fund) are both mutual funds - PNIIX is a Intermediate Core Bond fund managed by Principal, while PTEAX is a Municipal Bonds fund managed by Principal. Over the past 10 years, PNIIX returned 1.39%/yr vs 1.89%/yr for PTEAX. At a 0.47 correlation, their price movements are largely independent. PNIIX charges 0.15%/yr vs 0.73%/yr for PTEAX.
Performance
PNIIX vs. PTEAX - Performance Comparison
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Returns By Period
In the year-to-date period, PNIIX achieves a 0.47% return, which is significantly lower than PTEAX's 1.38% return. Over the past 10 years, PNIIX has underperformed PTEAX with an annualized return of 1.39%, while PTEAX has yielded a comparatively higher 1.89% annualized return.
PNIIX
- 1D
- 0.12%
- 1M
- 0.71%
- YTD
- 0.47%
- 6M
- 0.35%
- 1Y
- 3.88%
- 3Y*
- 3.81%
- 5Y*
- -0.07%
- 10Y*
- 1.39%
PTEAX
- 1D
- 0.00%
- 1M
- 1.53%
- YTD
- 1.38%
- 6M
- 1.86%
- 1Y
- 6.48%
- 3Y*
- 3.73%
- 5Y*
- 0.31%
- 10Y*
- 1.89%
PNIIX vs. PTEAX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PNIIX Principal Bond Market Index Fund | 0.47% | 7.01% | 1.17% | 5.55% | -13.26% | -1.68% | 7.28% | 8.47% | -0.20% | 3.31% |
PTEAX Principal Tax-Exempt Bond Fund | 1.38% | 4.68% | 2.10% | 6.35% | -12.18% | 2.71% | 4.80% | 9.05% | 0.44% | 6.44% |
Correlation
The correlation between PNIIX and PTEAX is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.44 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.49 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Dec 31, 2009 | 0.47 |
The correlation between PNIIX and PTEAX has been stable across timeframes, ranging from 0.44 to 0.54 - a consistent structural relationship.
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Return for Risk
PNIIX vs. PTEAX — Risk / Return Rank
PNIIX
PTEAX
PNIIX vs. PTEAX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal Bond Market Index Fund (PNIIX) 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.
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 | PTEAX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.07 | ||
| Sortino ratioReturn per unit of downside risk | -1.85 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.57 | -0.37 |
| Calmar ratioReturn relative to maximum drawdown | 1.54 | 2.05 | -0.50 |
| Martin ratioReturn relative to average drawdown | 4.42 | 6.83 | -2.41 |
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Drawdowns
PNIIX vs. PTEAX - Drawdown Comparison
The maximum PNIIX drawdown since its inception was -18.76%, smaller than the maximum PTEAX drawdown of -38.72%. Use the drawdown chart below to compare losses from any high point for PNIIX and PTEAX.
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Drawdown Indicators
| PNIIX | PTEAX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.76% | -38.72% | +19.96% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -3.10% | +0.34% |
Max Drawdown (3Y)Largest decline over 3 years | -6.25% | -5.31% | -0.94% |
Max Drawdown (5Y)Largest decline over 5 years | -18.14% | -17.37% | -0.77% |
Max Drawdown (10Y)Largest decline over 10 years | -18.76% | -17.37% | -1.39% |
Current DrawdownCurrent decline from peak | -2.65% | -0.55% | -2.10% |
Average DrawdownAverage peak-to-trough decline | -3.44% | -5.92% | +2.48% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 0.93% | +0.03% |
Volatility
PNIIX vs. PTEAX - Volatility Comparison
Principal Bond Market Index Fund (PNIIX) has a higher volatility of 1.15% compared to Principal Tax-Exempt Bond Fund (PTEAX) at 0.75%. This indicates that PNIIX'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.
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Volatility by Period
| PNIIX | PTEAX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.15% | 0.75% | +0.40% |
Volatility (6M)Calculated over the trailing 6-month period | 2.81% | 2.08% | +0.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.82% | 2.91% | +0.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.32% | 4.00% | +2.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.09% | 4.40% | +0.69% |
PNIIX vs. PTEAX - Expense Ratio Comparison
PNIIX has a 0.15% expense ratio, which is lower than PTEAX's 0.73% expense ratio.
Dividends
PNIIX vs. PTEAX - Dividend Comparison
PNIIX's dividend yield for the trailing twelve months is around 3.99%, more than PTEAX's 3.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PNIIX Principal Bond Market Index Fund | 3.99% | 4.01% | 3.60% | 4.18% | 1.66% | 2.03% | 18.60% | 2.40% | 2.51% | 2.35% | 1.78% | 2.10% |
PTEAX Principal Tax-Exempt Bond Fund | 3.82% | 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
PNIIX and PTEAX have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PNIIX has higher volatility (1.15%) compared to PTEAX (0.75%). In terms of maximum drawdown, PNIIX dropped -18.76% vs PTEAX's -38.72%.
PTEAX currently has the higher Sharpe Ratio (2.18 vs 1.12), 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.
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