PPSIX vs. PTDIX

Last updated Jun 24, 2026

PPSIX (Principal Spectrum Preferred and Capital Securities Income Fund) and PTDIX (Principal LifeTime 2040 Fund) are both mutual funds - PPSIX is a Preferred Stock/Convertible Bonds fund managed by Principal, while PTDIX is a Target Retirement Date fund managed by Principal. Over the past 10 years, PPSIX returned 4.38%/yr vs 10.85%/yr for PTDIX. At a 0.33 correlation, their price movements are largely independent. PPSIX charges 0.79%/yr vs 0.01%/yr for PTDIX.

Performance

PPSIX vs. PTDIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Spectrum Preferred and Capital Securities Income Fund (PPSIX) and Principal LifeTime 2040 Fund (PTDIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PPSIX achieves a 1.01% return, which is significantly lower than PTDIX's 6.96% return. Over the past 10 years, PPSIX has underperformed PTDIX with an annualized return of 4.38%, while PTDIX has yielded a comparatively higher 10.85% annualized return.

PPSIX

• 1D: 0.00%
• 1M: 0.56%
• YTD: 1.01%
• 6M: 1.19%
• 1Y: 5.69%
• 3Y*: 8.46%
• 5Y*: 2.64%
• 10Y*: 4.38%

PTDIX

• 1D: -0.34%
• 1M: 1.19%
• YTD: 6.96%
• 6M: 6.54%
• 1Y: 17.41%
• 3Y*: 16.53%
• 5Y*: 8.04%
• 10Y*: 10.85%

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

PPSIX vs. PTDIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PPSIX Principal Spectrum Preferred and Capital Securities Income Fund	1.01%	7.86%	9.82%	5.88%	-10.67%	3.03%	5.47%	16.45%	-4.54%	10.51%
PTDIX Principal LifeTime 2040 Fund	6.96%	15.59%	17.43%	18.33%	-18.13%	15.35%	16.04%	24.91%	-7.95%	20.69%

Correlation

The correlation between PPSIX and PTDIX is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since May 3, 2002	0.33

Over the past year, PPSIX and PTDIX have become more correlated (0.57) than their long-term average of 0.33, meaning their price movements have been converging.

Return for Risk

PPSIX vs. PTDIX — Risk / Return Rank

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

PPSIX

PPSIX Risk / Return Rank: 62
PPSIX Sharpe Ratio Rank: 80
PPSIX Sortino Ratio Rank: 79
PPSIX Omega Ratio Rank: 87
PPSIX Calmar Ratio Rank: 28
PPSIX Martin Ratio Rank: 35

PTDIX

PTDIX Risk / Return Rank: 46
PTDIX Sharpe Ratio Rank: 43
PTDIX Sortino Ratio Rank: 41
PTDIX Omega Ratio Rank: 43
PTDIX Calmar Ratio Rank: 47
PTDIX Martin Ratio Rank: 58

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.

PPSIX vs. PTDIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred and Capital Securities Income Fund (PPSIX) and Principal LifeTime 2040 Fund (PTDIX). 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.

	PPSIX	PTDIX	Difference
Sharpe ratio: Return per unit of total volatility	2.42	1.77	+0.65
Sortino ratio: Return per unit of downside risk	3.45	2.50	+0.95
Omega ratio: Gain probability vs. loss probability	1.57	1.33	+0.24
Calmar ratio: Return relative to maximum drawdown	1.83	2.51	-0.67
Martin ratio: Return relative to average drawdown	7.39	10.92	-3.53

PPSIX vs. PTDIX - Sharpe Ratio Comparison

The current PPSIX Sharpe Ratio is 2.42, which is higher than the PTDIX Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of PPSIX and PTDIX, 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

PPSIX vs. PTDIX - Drawdown Comparison

The maximum PPSIX drawdown since its inception was -52.75%, roughly equal to the maximum PTDIX drawdown of -54.38%. Use the drawdown chart below to compare losses from any high point for PPSIX and PTDIX.

Drawdown Indicators

	PPSIX	PTDIX	Difference
Max Drawdown Largest peak-to-trough decline	-52.75%	-54.38%	+1.63%
Max Drawdown (1Y) Largest decline over 1 year	-3.18%	-7.32%	+4.14%
Max Drawdown (3Y) Largest decline over 3 years	-3.35%	-13.05%	+9.70%
Max Drawdown (5Y) Largest decline over 5 years	-17.37%	-25.43%	+8.06%
Max Drawdown (10Y) Largest decline over 10 years	-22.82%	-30.02%	+7.20%
Current Drawdown Current decline from peak	-0.60%	-0.78%	+0.18%
Average Drawdown Average peak-to-trough decline	-3.28%	-7.48%	+4.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	1.68%	-0.89%

Volatility

PPSIX vs. PTDIX - Volatility Comparison

The current volatility for Principal Spectrum Preferred and Capital Securities Income Fund (PPSIX) is 0.60%, while Principal LifeTime 2040 Fund (PTDIX) has a volatility of 3.96%. This indicates that PPSIX experiences smaller price fluctuations and is considered to be less risky than PTDIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPSIX	PTDIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.60%	3.96%	-3.36%
Volatility (6M) Calculated over the trailing 6-month period	2.09%	8.55%	-6.46%
Volatility (1Y) Calculated over the trailing 1-year period	2.42%	10.39%	-7.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.24%	13.58%	-9.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.36%	13.86%	-8.50%

PPSIX vs. PTDIX - Expense Ratio Comparison

PPSIX has a 0.79% expense ratio, which is higher than PTDIX's 0.01% expense ratio.

Dividends

PPSIX vs. PTDIX - Dividend Comparison

PPSIX's dividend yield for the trailing twelve months is around 5.36%, less than PTDIX's 9.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PPSIX Principal Spectrum Preferred and Capital Securities Income Fund	5.36%	5.59%	5.34%	4.82%	5.54%	4.39%	4.44%	4.87%	5.79%	5.04%	5.86%	6.09%
PTDIX Principal LifeTime 2040 Fund	9.16%	9.80%	12.28%	4.40%	8.61%	8.92%	6.01%	7.26%	9.28%	6.07%	4.86%	6.73%

Frequently Asked Questions

Can I hold both PPSIX and PTDIX in my portfolio?

PPSIX and PTDIX have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PPSIX or PTDIX?

PTDIX has higher volatility (3.96%) compared to PPSIX (0.60%). In terms of maximum drawdown, PPSIX dropped -52.75% vs PTDIX's -54.38%.

Which has better risk-adjusted returns?

PPSIX currently has the higher Sharpe Ratio (2.42 vs 1.77), 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.