PSMIX vs. PTDIX

Last updated Jun 25, 2026

PSMIX (Principal Global Multi-Strategy Fund) and PTDIX (Principal LifeTime 2040 Fund) are both mutual funds - PSMIX is a Multistrategy fund managed by Principal, while PTDIX is a Target Retirement Date fund managed by Principal. Over the past 10 years, PSMIX returned 5.21%/yr vs 10.70%/yr for PTDIX. Their correlation of 0.84 suggests significant overlap in exposure. PSMIX charges 1.63%/yr vs 0.01%/yr for PTDIX.

Performance

PSMIX vs. PTDIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Global Multi-Strategy Fund (PSMIX) 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, PSMIX achieves a 4.72% return, which is significantly lower than PTDIX's 5.52% return. Over the past 10 years, PSMIX has underperformed PTDIX with an annualized return of 5.21%, while PTDIX has yielded a comparatively higher 10.70% annualized return.

PSMIX

• 1D: -0.65%
• 1M: -0.00%
• YTD: 4.72%
• 6M: 4.51%
• 1Y: 13.04%
• 3Y*: 9.32%
• 5Y*: 5.93%
• 10Y*: 5.21%

PTDIX

• 1D: -1.35%
• 1M: -0.17%
• YTD: 5.52%
• 6M: 4.86%
• 1Y: 14.59%
• 3Y*: 16.01%
• 5Y*: 7.62%
• 10Y*: 10.70%

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

PSMIX vs. PTDIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSMIX Principal Global Multi-Strategy Fund	4.72%	10.47%	8.90%	6.59%	-1.80%	5.62%	5.11%	8.18%	-4.34%	6.60%
PTDIX Principal LifeTime 2040 Fund	5.52%	15.59%	17.43%	18.33%	-18.13%	15.35%	16.04%	24.91%	-7.95%	20.69%

Correlation

The correlation between PSMIX and PTDIX is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Nov 1, 2011	0.84

The correlation between PSMIX and PTDIX has been stable across timeframes, ranging from 0.84 to 0.88 - a consistent structural relationship.

Return for Risk

PSMIX vs. PTDIX — Risk / Return Rank

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

PSMIX

PSMIX Risk / Return Rank: 95
PSMIX Sharpe Ratio Rank: 97
PSMIX Sortino Ratio Rank: 95
PSMIX Omega Ratio Rank: 92
PSMIX Calmar Ratio Rank: 96
PSMIX Martin Ratio Rank: 96

PTDIX

PTDIX Risk / Return Rank: 38
PTDIX Sharpe Ratio Rank: 34
PTDIX Sortino Ratio Rank: 33
PTDIX Omega Ratio Rank: 34
PTDIX Calmar Ratio Rank: 38
PTDIX Martin Ratio Rank: 50

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.

PSMIX vs. PTDIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Global Multi-Strategy Fund (PSMIX) 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.

	PSMIX	PTDIX	Difference
Sharpe ratio: Return per unit of total volatility	3.27	1.52	+1.74
Sortino ratio: Return per unit of downside risk	4.78	2.16	+2.62
Omega ratio: Gain probability vs. loss probability	1.64	1.28	+0.36
Calmar ratio: Return relative to maximum drawdown	5.55	2.17	+3.38
Martin ratio: Return relative to average drawdown	22.38	9.43	+12.95

PSMIX vs. PTDIX - Sharpe Ratio Comparison

The current PSMIX Sharpe Ratio is 3.27, which is higher than the PTDIX Sharpe Ratio of 1.52. The chart below compares the historical Sharpe Ratios of PSMIX 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

PSMIX vs. PTDIX - Drawdown Comparison

The maximum PSMIX drawdown since its inception was -55.50%, roughly equal to the maximum PTDIX drawdown of -54.38%. Use the drawdown chart below to compare losses from any high point for PSMIX and PTDIX.

Drawdown Indicators

	PSMIX	PTDIX	Difference
Max Drawdown Largest peak-to-trough decline	-55.50%	-54.38%	-1.12%
Max Drawdown (1Y) Largest decline over 1 year	-2.41%	-7.32%	+4.91%
Max Drawdown (3Y) Largest decline over 3 years	-5.01%	-13.05%	+8.04%
Max Drawdown (5Y) Largest decline over 5 years	-6.39%	-25.43%	+19.04%
Max Drawdown (10Y) Largest decline over 10 years	-55.50%	-30.02%	-25.48%
Current Drawdown Current decline from peak	-25.25%	-2.12%	-23.13%
Average Drawdown Average peak-to-trough decline	-26.58%	-7.48%	-19.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.60%	1.68%	-1.08%

Volatility

PSMIX vs. PTDIX - Volatility Comparison

The current volatility for Principal Global Multi-Strategy Fund (PSMIX) is 1.66%, while Principal LifeTime 2040 Fund (PTDIX) has a volatility of 4.20%. This indicates that PSMIX 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

	PSMIX	PTDIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.66%	4.20%	-2.54%
Volatility (6M) Calculated over the trailing 6-month period	3.24%	8.64%	-5.40%
Volatility (1Y) Calculated over the trailing 1-year period	4.11%	10.46%	-6.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.55%	13.59%	-9.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.11%	13.80%	+24.31%

PSMIX vs. PTDIX - Expense Ratio Comparison

PSMIX has a 1.63% expense ratio, which is higher than PTDIX's 0.01% expense ratio.

Dividends

PSMIX vs. PTDIX - Dividend Comparison

PSMIX's dividend yield for the trailing twelve months is around 5.28%, less than PTDIX's 9.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSMIX Principal Global Multi-Strategy Fund	5.28%	5.53%	1.66%	3.51%	12.10%	4.04%	1.68%	0.00%	6.52%	2.91%	0.15%	3.02%
PTDIX Principal LifeTime 2040 Fund	9.29%	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 PSMIX and PTDIX in my portfolio?

PSMIX and PTDIX have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSMIX or PTDIX?

PTDIX has higher volatility (4.20%) compared to PSMIX (1.66%). In terms of maximum drawdown, PSMIX dropped -55.50% vs PTDIX's -54.38%.

Which has better risk-adjusted returns?

PSMIX currently has the higher Sharpe Ratio (3.27 vs 1.52), 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.