PTEAX vs. PSSMX
PTEAX (Principal Tax-Exempt Bond Fund) and PSSMX (Principal SmallCap S&P 600 Index Fund) are both mutual funds - PTEAX is a Municipal Bonds fund managed by Principal, while PSSMX is a Small Cap Blend Equities fund managed by Principal. Over the past 10 years, PTEAX returned 1.86%/yr vs 10.84%/yr for PSSMX. At a correlation of -0.10, they often move in opposite directions. Both charge a 0.73% expense ratio.
Performance
PTEAX vs. PSSMX - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, PTEAX achieves a 1.54% return, which is significantly lower than PSSMX's 21.11% return. Over the past 10 years, PTEAX has underperformed PSSMX with an annualized return of 1.86%, while PSSMX has yielded a comparatively higher 10.84% annualized return.
PTEAX
- 1D
- 0.00%
- 1M
- 0.31%
- 6M
- 1.09%
- YTD
- 1.54%
- 1Y
- 6.48%
- 3Y*
- 3.85%
- 5Y*
- 0.15%
- 10Y*
- 1.86%
PSSMX
- 1D
- 0.00%
- 1M
- 1.51%
- 6M
- 15.06%
- YTD
- 21.11%
- 1Y
- 29.82%
- 3Y*
- 17.15%
- 5Y*
- 8.05%
- 10Y*
- 10.84%
PTEAX vs. PSSMX - 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% |
PSSMX Principal SmallCap S&P 600 Index Fund | 21.11% | 5.34% | 16.60% | 15.18% | -16.69% | 25.39% | 10.65% | 21.99% | -9.42% | 12.46% |
Correlation
The correlation between PTEAX and PSSMX is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.01 |
Correlation (All Time) Calculated using the full available price history since Jan 2, 2001 | -0.10 |
The correlation between PTEAX and PSSMX shifts across timeframes, from -0.10 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
PTEAX vs. PSSMX — Risk / Return Rank
PTEAX
PSSMX
PTEAX vs. PSSMX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal Tax-Exempt Bond Fund (PTEAX) and Principal SmallCap S&P 600 Index Fund (PSSMX). 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 | PSSMX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.52 | ||
| Sortino ratioReturn per unit of downside risk | +1.02 | ||
| Omega ratioGain probability vs. loss probability | 1.56 | 1.29 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 1.99 | 3.26 | -1.27 |
| Martin ratioReturn relative to average drawdown | 6.83 | 10.96 | -4.13 |
Loading charts...
Drawdowns
PTEAX vs. PSSMX - Drawdown Comparison
The maximum PTEAX drawdown since its inception was -38.72%, smaller than the maximum PSSMX drawdown of -58.43%. Use the drawdown chart below to compare losses from any high point for PTEAX and PSSMX.
Loading charts...
Drawdown Indicators
| PTEAX | PSSMX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.72% | -58.43% | +19.71% |
Max Drawdown (1Y)Largest decline over 1 year | -3.10% | -8.76% | +5.66% |
Max Drawdown (3Y)Largest decline over 3 years | -5.31% | -24.30% | +18.99% |
Max Drawdown (5Y)Largest decline over 5 years | -17.37% | -27.01% | +9.64% |
Max Drawdown (10Y)Largest decline over 10 years | -17.37% | -44.85% | +27.48% |
Current DrawdownCurrent decline from peak | -0.45% | -1.91% | +1.46% |
Average DrawdownAverage peak-to-trough decline | -5.92% | -9.48% | +3.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 2.61% | -1.69% |
Volatility
PTEAX vs. PSSMX - Volatility Comparison
The current volatility for Principal Tax-Exempt Bond Fund (PTEAX) is 0.60%, while Principal SmallCap S&P 600 Index Fund (PSSMX) has a volatility of 4.65%. This indicates that PTEAX experiences smaller price fluctuations and is considered to be less risky than PSSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| PTEAX | PSSMX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.60% | 4.65% | -4.05% |
Volatility (6M)Calculated over the trailing 6-month period | 2.08% | 12.10% | -10.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.88% | 17.54% | -14.66% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.99% | 21.72% | -17.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.40% | 22.85% | -18.45% |
PTEAX vs. PSSMX - Expense Ratio Comparison
Both PTEAX and PSSMX have an expense ratio of 0.73%.
Dividends
PTEAX vs. PSSMX - Dividend Comparison
PTEAX's dividend yield for the trailing twelve months is around 3.83%, less than PSSMX's 8.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PSSMX Principal SmallCap S&P 600 Index Fund | 8.24% | 9.98% | 15.91% | 3.75% | 10.45% | 8.23% | 1.67% | 6.56% | 13.08% | 6.03% | 6.15% | 8.07% |
PTEAX Principal Tax-Exempt Bond Fund | 3.83% | 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
PTEAX and PSSMX have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PSSMX has higher volatility (4.65%) compared to PTEAX (0.60%). In terms of maximum drawdown, PTEAX dropped -38.72% vs PSSMX's -58.43%.
PTEAX currently has the higher Sharpe Ratio (2.15 vs 1.63), 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.
Find the right allocation for PTEAX and PSSMX
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer