RFETX vs. LTSTX
RFETX (American Funds 2030 Target Date Retirement Fund Class R6) and LTSTX (Principal LifeTime 2025 Fund) are both Target Retirement Date funds. Over the past 10 years, RFETX returned 9.58%/yr vs 8.19%/yr for LTSTX. With a 0.97 correlation, they move nearly in lockstep. RFETX charges 0.33%/yr vs 0.01%/yr for LTSTX.
Performance
RFETX vs. LTSTX - Performance Comparison
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Returns By Period
In the year-to-date period, RFETX achieves a 4.95% return, which is significantly higher than LTSTX's 3.83% return. Over the past 10 years, RFETX has outperformed LTSTX with an annualized return of 9.58%, while LTSTX has yielded a comparatively lower 8.19% annualized return.
RFETX
- 1D
- -0.56%
- 1M
- 0.20%
- YTD
- 4.95%
- 6M
- 4.51%
- 1Y
- 13.22%
- 3Y*
- 13.15%
- 5Y*
- 6.72%
- 10Y*
- 9.58%
LTSTX
- 1D
- -0.78%
- 1M
- 0.09%
- YTD
- 3.83%
- 6M
- 3.33%
- 1Y
- 10.62%
- 3Y*
- 11.63%
- 5Y*
- 5.22%
- 10Y*
- 8.19%
RFETX vs. LTSTX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
RFETX American Funds 2030 Target Date Retirement Fund Class R6 | 4.95% | 15.73% | 10.86% | 14.52% | -14.50% | 13.22% | 15.17% | 20.03% | -4.14% | 18.53% |
LTSTX Principal LifeTime 2025 Fund | 3.83% | 12.16% | 11.91% | 13.30% | -15.23% | 10.91% | 13.70% | 20.50% | -6.41% | 16.75% |
Correlation
The correlation between RFETX and LTSTX is 0.95, 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since Jan 4, 2010 | 0.97 |
The correlation between RFETX and LTSTX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.
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Return for Risk
RFETX vs. LTSTX — Risk / Return Rank
RFETX
LTSTX
RFETX vs. LTSTX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2030 Target Date Retirement Fund Class R6 (RFETX) and Principal LifeTime 2025 Fund (LTSTX). 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.
| RFETX | LTSTX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.25 | ||
| Sortino ratioReturn per unit of downside risk | +0.38 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.31 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.35 | 2.18 | +0.16 |
| Martin ratioReturn relative to average drawdown | 10.31 | 9.64 | +0.66 |
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Drawdowns
RFETX vs. LTSTX - Drawdown Comparison
The maximum RFETX drawdown since its inception was -22.29%, smaller than the maximum LTSTX drawdown of -48.17%. Use the drawdown chart below to compare losses from any high point for RFETX and LTSTX.
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Drawdown Indicators
| RFETX | LTSTX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.29% | -48.17% | +25.88% |
Max Drawdown (1Y)Largest decline over 1 year | -6.08% | -5.24% | -0.84% |
Max Drawdown (3Y)Largest decline over 3 years | -8.68% | -8.12% | -0.56% |
Max Drawdown (5Y)Largest decline over 5 years | -20.81% | -21.01% | +0.20% |
Max Drawdown (10Y)Largest decline over 10 years | -22.29% | -23.33% | +1.04% |
Current DrawdownCurrent decline from peak | -1.15% | -1.30% | +0.15% |
Average DrawdownAverage peak-to-trough decline | -3.27% | -6.14% | +2.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.38% | 1.18% | +0.20% |
Volatility
RFETX vs. LTSTX - Volatility Comparison
American Funds 2030 Target Date Retirement Fund Class R6 (RFETX) and Principal LifeTime 2025 Fund (LTSTX) have volatilities of 2.82% and 2.86%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RFETX | LTSTX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.82% | 2.86% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 6.20% | 5.92% | +0.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.63% | 7.09% | +0.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.78% | 9.24% | +0.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.63% | 9.79% | +0.84% |
RFETX vs. LTSTX - Expense Ratio Comparison
RFETX has a 0.33% expense ratio, which is higher than LTSTX's 0.01% expense ratio.
Dividends
RFETX vs. LTSTX - Dividend Comparison
RFETX's dividend yield for the trailing twelve months is around 6.31%, less than LTSTX's 11.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LTSTX Principal LifeTime 2025 Fund | 11.74% | 12.19% | 9.74% | 4.26% | 8.00% | 7.66% | 5.25% | 6.91% | 6.39% | 4.75% | 3.65% | 8.91% |
RFETX American Funds 2030 Target Date Retirement Fund Class R6 | 6.31% | 6.62% | 4.04% | 3.00% | 4.73% | 6.77% | 3.86% | 4.26% | 4.81% | 2.86% | 3.77% | 5.83% |
Frequently Asked Questions
With a correlation of 0.95, RFETX and LTSTX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
LTSTX has higher volatility (2.86%) compared to RFETX (2.82%). In terms of maximum drawdown, RFETX dropped -22.29% vs LTSTX's -48.17%.
RFETX currently has the higher Sharpe Ratio (1.87 vs 1.62), 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.
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