PTEAX vs. PDRDX

Last updated Aug 1, 2026

PTEAX (Principal Tax-Exempt Bond Fund) and PDRDX (Principal Diversified Real Asset Fund) are both mutual funds - PTEAX is a Municipal Bonds fund managed by Principal, while PDRDX is a Global Allocation fund managed by Principal. Over the past 10 years, PTEAX returned 1.71%/yr vs 6.37%/yr for PDRDX. Their 0.02 correlation means their historical movements had little consistent relationship. PTEAX charges 0.73%/yr vs 0.83%/yr for PDRDX.

Performance

PTEAX vs. PDRDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Tax-Exempt Bond Fund (PTEAX) and Principal Diversified Real Asset Fund (PDRDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PTEAX achieves a 0.02% return, which is significantly lower than PDRDX's 13.53% return. Over the past 10 years, PTEAX has underperformed PDRDX with an annualized return of 1.71%, while PDRDX has yielded a comparatively higher 6.37% annualized return.

PTEAX

• 1D: -0.30%
• 1M: -1.94%
• 6M: -0.89%
• YTD: 0.02%
• 1Y: 4.69%
• 3Y*: 3.09%
• 5Y*: -0.20%
• 10Y*: 1.71%
• ALL TIME*: 1.90%

PDRDX

• 1D: 0.73%
• 1M: 2.99%
• 6M: 7.22%
• YTD: 13.53%
• 1Y: 21.77%
• 3Y*: 10.30%
• 5Y*: 6.41%
• 10Y*: 6.37%
• ALL TIME*: 5.30%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PDRDX Principal Diversified Real Asset Fund	$0.00	$0.00	$0.00
PTEAX Principal Tax-Exempt Bond Fund	$0.00	$0.00	$0.00

PTEAX vs. PDRDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PTEAX Principal Tax-Exempt Bond Fund	0.02%	4.68%	2.10%	6.35%	-12.18%	2.71%	4.80%	9.05%	0.44%	6.44%
PDRDX Principal Diversified Real Asset Fund	13.53%	14.63%	3.09%	3.22%	-6.19%	17.30%	3.97%	15.02%	-7.90%	10.18%

Correlation

The correlation between PTEAX and PDRDX is 0.10, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.10
Correlation (3Y) Balances recent behavior with more history.	0.22
Correlation (5Y) Shows whether the relationship held over a longer period.	0.18
Correlation (10Y) Provides a long-term view across more market conditions.	0.10
Correlation (All Time) Calculated using the full available price history since Mar 17, 2010	0.02

The correlation between PTEAX and PDRDX shifts across timeframes, from 0.02 (all time) to 0.22 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

PTEAX vs. PDRDX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PTEAX

PTEAX Risk / Return Rank: 70
PTEAX Sharpe Ratio Rank: 82
PTEAX Sortino Ratio Rank: 86
PTEAX Omega Ratio Rank: 90
PTEAX Calmar Ratio Rank: 49
PTEAX Martin Ratio Rank: 42

PDRDX

PDRDX Risk / Return Rank: 87
PDRDX Sharpe Ratio Rank: 88
PDRDX Sortino Ratio Rank: 85
PDRDX Omega Ratio Rank: 83
PDRDX Calmar Ratio Rank: 92
PDRDX Martin Ratio Rank: 88

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PTEAX vs. PDRDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Tax-Exempt Bond Fund (PTEAX) and Principal Diversified Real Asset Fund (PDRDX). 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.

	PTEAX	PDRDX	Difference
Sharpe ratio: Return per unit of total volatility	1.95	2.20	-0.25
Sortino ratio: Return per unit of downside risk	3.09	3.02	+0.07
Omega ratio: Gain probability vs. loss probability	1.50	1.40	+0.10
Calmar ratio: Return relative to maximum drawdown	1.84	3.59	-1.75
Martin ratio: Return relative to average drawdown	6.06	11.79	-5.73

PTEAX vs. PDRDX - Sharpe Ratio Comparison

The current PTEAX Sharpe Ratio is 1.95, which is comparable to the PDRDX Sharpe Ratio of 2.20. The chart below compares the historical Sharpe Ratios of PTEAX and PDRDX, 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

PTEAX vs. PDRDX - Drawdown Comparison

The maximum PTEAX drawdown since its inception was -38.72%, which is greater than PDRDX's maximum drawdown of -28.55%. Use the drawdown chart below to compare losses from any high point for PTEAX and PDRDX.

Drawdown Indicators

	PTEAX	PDRDX	Difference
Max Drawdown Largest peak-to-trough decline	-38.72%	-28.55%	-10.17%
Max Drawdown (1Y) Largest decline over 1 year	-3.10%	-5.88%	+2.78%
Max Drawdown (3Y) Largest decline over 3 years	-5.08%	-10.94%	+5.86%
Max Drawdown (5Y) Largest decline over 5 years	-17.37%	-19.35%	+1.98%
Max Drawdown (10Y) Largest decline over 10 years	-17.37%	-28.55%	+11.18%
Current Drawdown Current decline from peak	-1.94%	-1.11%	-0.83%
Average Drawdown Average peak-to-trough decline	-5.91%	-5.95%	+0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.94%	1.79%	-0.85%

Volatility

PTEAX vs. PDRDX - Volatility Comparison

The current volatility for Principal Tax-Exempt Bond Fund (PTEAX) is 0.92%, while Principal Diversified Real Asset Fund (PDRDX) has a volatility of 2.55%. This indicates that PTEAX experiences smaller price fluctuations and is considered to be less risky than PDRDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PTEAX	PDRDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.92%	2.55%	-1.63%
Volatility (6M) Calculated over the trailing 6-month period	2.26%	8.05%	-5.79%
Volatility (1Y) Calculated over the trailing 1-year period	2.93%	9.64%	-6.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.02%	11.01%	-6.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.40%	10.80%	-6.40%

PTEAX vs. PDRDX - Expense Ratio Comparison

PTEAX has a 0.73% expense ratio, which is lower than PDRDX's 0.83% expense ratio.

Dividends

PTEAX vs. PDRDX - Dividend Comparison

PTEAX's dividend yield for the trailing twelve months is around 3.56%, less than PDRDX's 3.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PDRDX Principal Diversified Real Asset Fund	3.64%	4.19%	2.43%	2.52%	12.88%	6.56%	0.52%	2.36%	3.47%	2.21%	2.61%	0.99%
PTEAX Principal Tax-Exempt Bond Fund	3.56%	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

Can I hold both PTEAX and PDRDX in my portfolio?

PTEAX and PDRDX have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PTEAX or PDRDX?

PDRDX has higher volatility (2.55%) compared to PTEAX (0.92%). In terms of maximum drawdown, PTEAX dropped -38.72% vs PDRDX's -28.55%.

Which has better risk-adjusted returns?

PDRDX currently has the higher Sharpe Ratio (2.20 vs 1.95), 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.