PTEAX vs. PLFMX

Last updated Jun 23, 2026

PTEAX (Principal Tax-Exempt Bond Fund) and PLFMX (Principal LargeCap S&P 500 Index Fund) are both mutual funds - PTEAX is a Municipal Bonds fund managed by Principal, while PLFMX is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, PTEAX returned 1.94%/yr vs 14.91%/yr for PLFMX. At a correlation of -0.10, they often move in opposite directions. PTEAX charges 0.73%/yr vs 0.72%/yr for PLFMX.

Performance

PTEAX vs. PLFMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Tax-Exempt Bond Fund (PTEAX) and Principal LargeCap S&P 500 Index Fund (PLFMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PTEAX achieves a 1.54% return, which is significantly lower than PLFMX's 9.86% return. Over the past 10 years, PTEAX has underperformed PLFMX with an annualized return of 1.94%, while PLFMX has yielded a comparatively higher 14.91% annualized return.

PTEAX

• 1D: 0.15%
• 1M: 1.69%
• YTD: 1.54%
• 6M: 2.02%
• 1Y: 6.64%
• 3Y*: 3.89%
• 5Y*: 0.31%
• 10Y*: 1.94%

PLFMX

• 1D: 1.08%
• 1M: 0.42%
• YTD: 9.86%
• 6M: 9.35%
• 1Y: 26.37%
• 3Y*: 20.76%
• 5Y*: 13.62%
• 10Y*: 14.91%

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

PTEAX vs. PLFMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PTEAX Principal Tax-Exempt Bond Fund	1.54%	4.68%	2.10%	6.35%	-12.18%	2.71%	4.80%	9.05%	0.44%	6.44%
PLFMX Principal LargeCap S&P 500 Index Fund	9.86%	17.10%	26.06%	25.27%	-18.67%	27.57%	17.46%	30.58%	-5.14%	20.96%

Correlation

The correlation between PTEAX and PLFMX is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.10
Correlation (10Y) Calculated over the trailing 10-year period	0.02
Correlation (All Time) Calculated using the full available price history since Dec 6, 2000	-0.10

The correlation between PTEAX and PLFMX shifts across timeframes, from -0.10 (all time) to 0.13 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

PTEAX vs. PLFMX — Risk / Return Rank

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

PTEAX

PTEAX Risk / Return Rank: 64
PTEAX Sharpe Ratio Rank: 74
PTEAX Sortino Ratio Rank: 85
PTEAX Omega Ratio Rank: 89
PTEAX Calmar Ratio Rank: 36
PTEAX Martin Ratio Rank: 34

PLFMX

PLFMX Risk / Return Rank: 62
PLFMX Sharpe Ratio Rank: 60
PLFMX Sortino Ratio Rank: 55
PLFMX Omega Ratio Rank: 57
PLFMX Calmar Ratio Rank: 63
PLFMX Martin Ratio Rank: 74

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.

PTEAX vs. PLFMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Tax-Exempt Bond Fund (PTEAX) and Principal LargeCap S&P 500 Index Fund (PLFMX). 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	PLFMX	Difference
Sharpe ratio: Return per unit of total volatility	2.30	2.10	+0.20
Sortino ratio: Return per unit of downside risk	3.73	2.85	+0.88
Omega ratio: Gain probability vs. loss probability	1.60	1.38	+0.22
Calmar ratio: Return relative to maximum drawdown	2.15	2.91	-0.76
Martin ratio: Return relative to average drawdown	7.19	13.11	-5.93

PTEAX vs. PLFMX - Sharpe Ratio Comparison

The current PTEAX Sharpe Ratio is 2.30, which is comparable to the PLFMX Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of PTEAX and PLFMX, 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. PLFMX - Drawdown Comparison

The maximum PTEAX drawdown since its inception was -38.72%, smaller than the maximum PLFMX drawdown of -55.62%. Use the drawdown chart below to compare losses from any high point for PTEAX and PLFMX.

Drawdown Indicators

	PTEAX	PLFMX	Difference
Max Drawdown Largest peak-to-trough decline	-38.72%	-55.62%	+16.90%
Max Drawdown (1Y) Largest decline over 1 year	-3.10%	-9.00%	+5.90%
Max Drawdown (3Y) Largest decline over 3 years	-5.31%	-18.83%	+13.52%
Max Drawdown (5Y) Largest decline over 5 years	-17.37%	-24.91%	+7.54%
Max Drawdown (10Y) Largest decline over 10 years	-17.37%	-33.80%	+16.43%
Current Drawdown Current decline from peak	-0.41%	-1.38%	+0.97%
Average Drawdown Average peak-to-trough decline	-5.93%	-9.98%	+4.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	2.00%	-1.07%

Volatility

PTEAX vs. PLFMX - Volatility Comparison

The current volatility for Principal Tax-Exempt Bond Fund (PTEAX) is 0.72%, while Principal LargeCap S&P 500 Index Fund (PLFMX) has a volatility of 4.77%. This indicates that PTEAX experiences smaller price fluctuations and is considered to be less risky than PLFMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PTEAX	PLFMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.72%	4.77%	-4.05%
Volatility (6M) Calculated over the trailing 6-month period	2.07%	9.92%	-7.85%
Volatility (1Y) Calculated over the trailing 1-year period	2.90%	12.48%	-9.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.99%	17.01%	-13.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.40%	17.53%	-13.13%

PTEAX vs. PLFMX - Expense Ratio Comparison

PTEAX has a 0.73% expense ratio, which is higher than PLFMX's 0.72% expense ratio.

Dividends

PTEAX vs. PLFMX - Dividend Comparison

PTEAX's dividend yield for the trailing twelve months is around 3.82%, more than PLFMX's 2.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PLFMX Principal LargeCap S&P 500 Index Fund	2.19%	2.41%	3.77%	3.62%	2.28%	13.02%	7.02%	3.28%	6.80%	6.44%	2.66%	2.07%
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

Can I hold both PTEAX and PLFMX in my portfolio?

PTEAX and PLFMX have a correlation of 0.13, 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 PLFMX?

PLFMX has higher volatility (4.77%) compared to PTEAX (0.72%). In terms of maximum drawdown, PTEAX dropped -38.72% vs PLFMX's -55.62%.

Which has better risk-adjusted returns?

PTEAX currently has the higher Sharpe Ratio (2.30 vs 2.10), 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.