PSBMX vs. PTDIX

Last updated Jun 24, 2026

PSBMX (Principal SmallCap Fund) and PTDIX (Principal LifeTime 2040 Fund) are both mutual funds - PSBMX is a Small Cap Blend Equities fund managed by Principal, while PTDIX is a Target Retirement Date fund managed by Principal. Over the past 10 years, PSBMX returned 11.08%/yr vs 10.85%/yr for PTDIX. Their correlation of 0.90 suggests significant overlap in exposure. PSBMX charges 1.31%/yr vs 0.01%/yr for PTDIX.

Performance

PSBMX vs. PTDIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal SmallCap Fund (PSBMX) 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, PSBMX achieves a 16.25% return, which is significantly higher than PTDIX's 6.96% return. Both investments have delivered pretty close results over the past 10 years, with PSBMX having a 11.08% annualized return and PTDIX not far behind at 10.85%.

PSBMX

• 1D: 0.85%
• 1M: 4.99%
• YTD: 16.25%
• 6M: 13.89%
• 1Y: 35.33%
• 3Y*: 16.05%
• 5Y*: 5.87%
• 10Y*: 11.08%

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)

PSBMX vs. PTDIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSBMX Principal SmallCap Fund	16.25%	14.58%	8.53%	15.11%	-20.51%	19.21%	21.44%	26.97%	-11.42%	12.35%
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 PSBMX and PTDIX is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Mar 2, 2001	0.90

The correlation between PSBMX and PTDIX has been stable across timeframes, ranging from 0.82 to 0.90 - a consistent structural relationship.

Return for Risk

PSBMX vs. PTDIX — Risk / Return Rank

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

PSBMX

PSBMX Risk / Return Rank: 59
PSBMX Sharpe Ratio Rank: 57
PSBMX Sortino Ratio Rank: 53
PSBMX Omega Ratio Rank: 49
PSBMX Calmar Ratio Rank: 69
PSBMX Martin Ratio Rank: 65

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.

PSBMX vs. PTDIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal SmallCap Fund (PSBMX) 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.

	PSBMX	PTDIX	Difference
Sharpe ratio: Return per unit of total volatility	2.04	1.77	+0.27
Sortino ratio: Return per unit of downside risk	2.83	2.50	+0.33
Omega ratio: Gain probability vs. loss probability	1.35	1.33	+0.03
Calmar ratio: Return relative to maximum drawdown	3.05	2.51	+0.54
Martin ratio: Return relative to average drawdown	11.97	10.92	+1.06

PSBMX vs. PTDIX - Sharpe Ratio Comparison

The current PSBMX Sharpe Ratio is 2.04, which is comparable to the PTDIX Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of PSBMX 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

PSBMX vs. PTDIX - Drawdown Comparison

The maximum PSBMX drawdown since its inception was -60.15%, which is greater than PTDIX's maximum drawdown of -54.38%. Use the drawdown chart below to compare losses from any high point for PSBMX and PTDIX.

Drawdown Indicators

	PSBMX	PTDIX	Difference
Max Drawdown Largest peak-to-trough decline	-60.15%	-54.38%	-5.77%
Max Drawdown (1Y) Largest decline over 1 year	-12.10%	-7.32%	-4.78%
Max Drawdown (3Y) Largest decline over 3 years	-25.13%	-13.05%	-12.08%
Max Drawdown (5Y) Largest decline over 5 years	-31.32%	-25.43%	-5.89%
Max Drawdown (10Y) Largest decline over 10 years	-42.04%	-30.02%	-12.02%
Current Drawdown Current decline from peak	0.00%	-0.78%	+0.78%
Average Drawdown Average peak-to-trough decline	-10.76%	-7.48%	-3.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	1.68%	+1.40%

Volatility

PSBMX vs. PTDIX - Volatility Comparison

Principal SmallCap Fund (PSBMX) has a higher volatility of 5.46% compared to Principal LifeTime 2040 Fund (PTDIX) at 3.96%. This indicates that PSBMX's price experiences larger fluctuations and is considered to be riskier than PTDIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSBMX	PTDIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.46%	3.96%	+1.50%
Volatility (6M) Calculated over the trailing 6-month period	13.91%	8.55%	+5.36%
Volatility (1Y) Calculated over the trailing 1-year period	18.10%	10.39%	+7.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.09%	13.58%	+8.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.41%	13.86%	+8.55%

PSBMX vs. PTDIX - Expense Ratio Comparison

PSBMX has a 1.31% expense ratio, which is higher than PTDIX's 0.01% expense ratio.

Dividends

PSBMX vs. PTDIX - Dividend Comparison

PSBMX's dividend yield for the trailing twelve months is around 4.80%, less than PTDIX's 9.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSBMX Principal SmallCap Fund	4.80%	5.58%	3.66%	2.91%	0.00%	7.82%	2.28%	5.83%	16.72%	8.65%	2.29%	3.80%
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 PSBMX and PTDIX in my portfolio?

PSBMX and PTDIX have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSBMX or PTDIX?

PSBMX has higher volatility (5.46%) compared to PTDIX (3.96%). In terms of maximum drawdown, PSBMX dropped -60.15% vs PTDIX's -54.38%.

Which has better risk-adjusted returns?

PSBMX currently has the higher Sharpe Ratio (2.04 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.