SWERX vs. PLTZX

Last updated Jun 4, 2026

SWERX (Schwab Target 2040 Fund) and PLTZX (Principal LifeTime 2060 Fund) are both Target Retirement Date funds. Over the past 10 years, SWERX returned 10.19%/yr vs 11.62%/yr for PLTZX. With a 0.97 correlation, they move nearly in lockstep. SWERX charges 0.00%/yr vs 0.01%/yr for PLTZX.

Performance

SWERX vs. PLTZX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2040 Fund (SWERX) and Principal LifeTime 2060 Fund (PLTZX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with SWERX having a 9.28% return and PLTZX slightly higher at 9.67%. Over the past 10 years, SWERX has underperformed PLTZX with an annualized return of 10.19%, while PLTZX has yielded a comparatively higher 11.62% annualized return.

SWERX

• 1D: 0.19%
• 1M: 3.86%
• YTD: 9.28%
• 6M: 9.85%
• 1Y: 22.49%
• 3Y*: 16.60%
• 5Y*: 8.20%
• 10Y*: 10.19%

PLTZX

• 1D: 0.44%
• 1M: 4.72%
• YTD: 9.67%
• 6M: 10.04%
• 1Y: 22.84%
• 3Y*: 18.70%
• 5Y*: 9.32%
• 10Y*: 11.62%

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

SWERX vs. PLTZX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWERX Schwab Target 2040 Fund	9.28%	17.71%	12.74%	19.06%	-18.57%	15.65%	14.44%	23.01%	-9.11%	20.48%
PLTZX Principal LifeTime 2060 Fund	9.67%	17.76%	16.89%	20.36%	-18.81%	18.12%	16.60%	27.54%	-9.24%	22.68%

Correlation

The correlation between SWERX and PLTZX is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Mar 5, 2013	0.97

The correlation between SWERX and PLTZX has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

Return for Risk

SWERX vs. PLTZX — Risk / Return Rank

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

SWERX

SWERX Risk / Return Rank: 59
SWERX Sharpe Ratio Rank: 60
SWERX Sortino Ratio Rank: 58
SWERX Omega Ratio Rank: 57
SWERX Calmar Ratio Rank: 54
SWERX Martin Ratio Rank: 64

PLTZX

PLTZX Risk / Return Rank: 49
PLTZX Sharpe Ratio Rank: 45
PLTZX Sortino Ratio Rank: 44
PLTZX Omega Ratio Rank: 45
PLTZX Calmar Ratio Rank: 49
PLTZX Martin Ratio Rank: 61

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.

SWERX vs. PLTZX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Fund (SWERX) and Principal LifeTime 2060 Fund (PLTZX). 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.

	SWERX	PLTZX	Difference
Sharpe ratio: Return per unit of total volatility	2.28	1.98	+0.30
Sortino ratio: Return per unit of downside risk	3.21	2.79	+0.42
Omega ratio: Gain probability vs. loss probability	1.42	1.37	+0.05
Calmar ratio: Return relative to maximum drawdown	2.82	2.68	+0.14
Martin ratio: Return relative to average drawdown	12.49	12.08	+0.41
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWERX vs. PLTZX - Sharpe Ratio Comparison

The current SWERX Sharpe Ratio is 2.28, which is comparable to the PLTZX Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of SWERX and PLTZX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SWERX	PLTZX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.28	1.98	+0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	0.61	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.69	0.73	-0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.70	-0.17

Drawdowns

SWERX vs. PLTZX - Drawdown Comparison

The maximum SWERX drawdown since its inception was -48.24%, which is greater than PLTZX's maximum drawdown of -34.01%. Use the drawdown chart below to compare losses from any high point for SWERX and PLTZX.

Drawdown Indicators

	SWERX	PLTZX	Difference
Max Drawdown Largest peak-to-trough decline	-48.24%	-34.01%	-14.23%
Max Drawdown (1Y) Largest decline over 1 year	-8.08%	-8.70%	+0.62%
Max Drawdown (3Y) Largest decline over 3 years	-13.05%	-15.73%	+2.68%
Max Drawdown (5Y) Largest decline over 5 years	-30.40%	-26.79%	-3.61%
Max Drawdown (10Y) Largest decline over 10 years	-30.40%	-34.01%	+3.61%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-7.15%	-4.63%	-2.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.82%	1.93%	-0.11%

Volatility

SWERX vs. PLTZX - Volatility Comparison

The current volatility for Schwab Target 2040 Fund (SWERX) is 2.93%, while Principal LifeTime 2060 Fund (PLTZX) has a volatility of 3.30%. This indicates that SWERX experiences smaller price fluctuations and is considered to be less risky than PLTZX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWERX	PLTZX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.93%	3.30%	-0.37%
Volatility (6M) Calculated over the trailing 6-month period	7.92%	9.44%	-1.52%
Volatility (1Y) Calculated over the trailing 1-year period	10.00%	11.80%	-1.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.99%	15.46%	-0.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.84%	15.99%	-1.15%

SWERX vs. PLTZX - Expense Ratio Comparison

SWERX has a 0.00% expense ratio, which is lower than PLTZX's 0.01% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SWERX vs. PLTZX - Dividend Comparison

SWERX's dividend yield for the trailing twelve months is around 6.58%, less than PLTZX's 7.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PLTZX Principal LifeTime 2060 Fund	7.60%	8.33%	7.85%	4.12%	8.44%	5.29%	3.60%	5.86%	5.75%	2.73%	3.48%	3.29%
SWERX Schwab Target 2040 Fund	6.58%	7.19%	5.00%	3.83%	8.31%	6.96%	3.33%	7.69%	8.57%	4.13%	6.76%	10.85%

Frequently Asked Questions

Can I hold both SWERX and PLTZX in my portfolio?

With a correlation of 0.97, SWERX and PLTZX 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.

Which is riskier, SWERX or PLTZX?

PLTZX has higher volatility (3.30%) compared to SWERX (2.93%). In terms of maximum drawdown, SWERX dropped -48.24% vs PLTZX's -34.01%.

Which has better risk-adjusted returns?

SWERX currently has the higher Sharpe Ratio (2.28 vs 1.98), 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.