SWERX vs. PTDIX

Last updated Jun 25, 2026

SWERX (Schwab Target 2040 Fund) and PTDIX (Principal LifeTime 2040 Fund) are both Target Retirement Date funds. Over the past 10 years, SWERX returned 10.36%/yr vs 10.70%/yr for PTDIX. With a 0.98 correlation, they move nearly in lockstep. SWERX charges 0.00%/yr vs 0.01%/yr for PTDIX.

Performance

SWERX vs. PTDIX - Performance Comparison

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

Returns By Period

In the year-to-date period, SWERX achieves a 7.30% return, which is significantly higher than PTDIX's 5.52% return. Both investments have delivered pretty close results over the past 10 years, with SWERX having a 10.36% annualized return and PTDIX not far ahead at 10.70%.

SWERX

• 1D: -1.35%
• 1M: -0.33%
• YTD: 7.30%
• 6M: 6.54%
• 1Y: 18.08%
• 3Y*: 15.63%
• 5Y*: 7.58%
• 10Y*: 10.36%

PTDIX

• 1D: -1.35%
• 1M: -0.17%
• YTD: 5.52%
• 6M: 4.86%
• 1Y: 14.59%
• 3Y*: 16.01%
• 5Y*: 7.62%
• 10Y*: 10.70%

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

SWERX vs. PTDIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWERX Schwab Target 2040 Fund	7.30%	17.71%	12.74%	19.06%	-18.57%	15.65%	14.44%	23.01%	-9.11%	20.48%
PTDIX Principal LifeTime 2040 Fund	5.52%	15.59%	17.43%	18.33%	-18.13%	15.35%	16.04%	24.91%	-7.95%	20.69%

Correlation

The correlation between SWERX and PTDIX is 0.98 - 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	0.98
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 Jul 1, 2005	0.98

The correlation between SWERX and PTDIX has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

Return for Risk

SWERX vs. PTDIX — Risk / Return Rank

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

SWERX

SWERX Risk / Return Rank: 47
SWERX Sharpe Ratio Rank: 46
SWERX Sortino Ratio Rank: 45
SWERX Omega Ratio Rank: 45
SWERX Calmar Ratio Rank: 45
SWERX Martin Ratio Rank: 55

PTDIX

PTDIX Risk / Return Rank: 38
PTDIX Sharpe Ratio Rank: 34
PTDIX Sortino Ratio Rank: 33
PTDIX Omega Ratio Rank: 34
PTDIX Calmar Ratio Rank: 38
PTDIX Martin Ratio Rank: 50

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. PTDIX - Risk-Adjusted Trends Comparison

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

	SWERX	PTDIX	Difference
Sharpe ratio: Return per unit of total volatility	1.82	1.52	+0.30
Sortino ratio: Return per unit of downside risk	2.56	2.16	+0.40
Omega ratio: Gain probability vs. loss probability	1.33	1.28	+0.05
Calmar ratio: Return relative to maximum drawdown	2.40	2.17	+0.23
Martin ratio: Return relative to average drawdown	10.44	9.43	+1.01

SWERX vs. PTDIX - Sharpe Ratio Comparison

The current SWERX Sharpe Ratio is 1.82, which is comparable to the PTDIX Sharpe Ratio of 1.52. The chart below compares the historical Sharpe Ratios of SWERX and PTDIX, 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

SWERX vs. PTDIX - Drawdown Comparison

The maximum SWERX drawdown since its inception was -48.24%, smaller than the maximum PTDIX drawdown of -54.38%. Use the drawdown chart below to compare losses from any high point for SWERX and PTDIX.

Drawdown Indicators

	SWERX	PTDIX	Difference
Max Drawdown Largest peak-to-trough decline	-48.24%	-54.38%	+6.14%
Max Drawdown (1Y) Largest decline over 1 year	-8.08%	-7.32%	-0.76%
Max Drawdown (3Y) Largest decline over 3 years	-13.05%	-13.05%	0.00%
Max Drawdown (5Y) Largest decline over 5 years	-30.40%	-25.43%	-4.97%
Max Drawdown (10Y) Largest decline over 10 years	-30.40%	-30.02%	-0.38%
Current Drawdown Current decline from peak	-1.81%	-2.12%	+0.31%
Average Drawdown Average peak-to-trough decline	-7.13%	-7.48%	+0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.85%	1.68%	+0.17%

Volatility

SWERX vs. PTDIX - Volatility Comparison

Schwab Target 2040 Fund (SWERX) and Principal LifeTime 2040 Fund (PTDIX) have volatilities of 4.23% and 4.20%, 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.

Volatility by Period

	SWERX	PTDIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.23%	4.20%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	8.73%	8.64%	+0.09%
Volatility (1Y) Calculated over the trailing 1-year period	10.66%	10.46%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.08%	13.59%	+1.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.82%	13.80%	+1.02%

SWERX vs. PTDIX - Expense Ratio Comparison

SWERX has a 0.00% expense ratio, which is lower than PTDIX'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. PTDIX - Dividend Comparison

SWERX's dividend yield for the trailing twelve months is around 6.70%, less than PTDIX's 9.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PTDIX Principal LifeTime 2040 Fund	9.29%	9.80%	12.28%	4.40%	8.61%	8.92%	6.01%	7.26%	9.28%	6.07%	4.86%	6.73%
SWERX Schwab Target 2040 Fund	6.70%	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 PTDIX in my portfolio?

With a correlation of 0.98, SWERX and PTDIX 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 PTDIX?

SWERX has higher volatility (4.23%) compared to PTDIX (4.20%). In terms of maximum drawdown, SWERX dropped -48.24% vs PTDIX's -54.38%.

Which has better risk-adjusted returns?

SWERX currently has the higher Sharpe Ratio (1.82 vs 1.52), 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.