SWYDX vs. PTDIX

Last updated Jun 23, 2026

SWYDX (Schwab Target 2025 Index Fund) and PTDIX (Principal LifeTime 2040 Fund) are both Target Retirement Date funds. Over the past 5 years, SWYDX returned 5.78%/yr vs 8.36%/yr for PTDIX. Their correlation of 0.95 suggests significant overlap in exposure. SWYDX charges 0.04%/yr vs 0.01%/yr for PTDIX.

Performance

SWYDX vs. PTDIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Target 2025 Index Fund (SWYDX) 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, SWYDX achieves a 5.86% return, which is significantly lower than PTDIX's 7.32% return.

SWYDX

• 1D: 0.62%
• 1M: 0.99%
• YTD: 5.86%
• 6M: 5.73%
• 1Y: 14.58%
• 3Y*: 11.04%
• 5Y*: 5.78%
• 10Y*: —

PTDIX

• 1D: 1.02%
• 1M: 1.53%
• YTD: 7.32%
• 6M: 7.21%
• 1Y: 18.66%
• 3Y*: 16.00%
• 5Y*: 8.36%
• 10Y*: 10.60%

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

SWYDX vs. PTDIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWYDX Schwab Target 2025 Index Fund	5.86%	12.60%	8.62%	14.47%	-14.78%	10.24%	12.37%	18.89%	-6.38%	14.53%
PTDIX Principal LifeTime 2040 Fund	7.32%	15.59%	17.43%	18.33%	-18.13%	15.35%	16.04%	24.91%	-7.95%	20.69%

Correlation

The correlation between SWYDX and PTDIX 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	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Aug 30, 2016	0.95

The correlation between SWYDX and PTDIX has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

Return for Risk

SWYDX vs. PTDIX — Risk / Return Rank

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

SWYDX

SWYDX Risk / Return Rank: 70
SWYDX Sharpe Ratio Rank: 69
SWYDX Sortino Ratio Rank: 72
SWYDX Omega Ratio Rank: 71
SWYDX Calmar Ratio Rank: 64
SWYDX Martin Ratio Rank: 73

PTDIX

PTDIX Risk / Return Rank: 47
PTDIX Sharpe Ratio Rank: 42
PTDIX Sortino Ratio Rank: 41
PTDIX Omega Ratio Rank: 43
PTDIX Calmar Ratio Rank: 48
PTDIX Martin Ratio Rank: 58

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.

SWYDX vs. PTDIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2025 Index Fund (SWYDX) 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.

	SWYDX	PTDIX	Difference
Sharpe ratio: Return per unit of total volatility	2.23	1.78	+0.44
Sortino ratio: Return per unit of downside risk	3.21	2.51	+0.70
Omega ratio: Gain probability vs. loss probability	1.43	1.33	+0.10
Calmar ratio: Return relative to maximum drawdown	2.93	2.52	+0.41
Martin ratio: Return relative to average drawdown	13.00	10.99	+2.01

SWYDX vs. PTDIX - Sharpe Ratio Comparison

The current SWYDX Sharpe Ratio is 2.23, which is comparable to the PTDIX Sharpe Ratio of 1.78. The chart below compares the historical Sharpe Ratios of SWYDX 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

SWYDX vs. PTDIX - Drawdown Comparison

The maximum SWYDX drawdown since its inception was -20.49%, smaller than the maximum PTDIX drawdown of -54.38%. Use the drawdown chart below to compare losses from any high point for SWYDX and PTDIX.

Drawdown Indicators

	SWYDX	PTDIX	Difference
Max Drawdown Largest peak-to-trough decline	-20.49%	-54.38%	+33.89%
Max Drawdown (1Y) Largest decline over 1 year	-4.94%	-7.32%	+2.38%
Max Drawdown (3Y) Largest decline over 3 years	-7.56%	-13.05%	+5.49%
Max Drawdown (5Y) Largest decline over 5 years	-20.43%	-25.43%	+5.00%
Max Drawdown (10Y) Largest decline over 10 years	—	-30.02%	—
Current Drawdown Current decline from peak	-0.25%	-0.45%	+0.20%
Average Drawdown Average peak-to-trough decline	-3.41%	-7.48%	+4.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.11%	1.68%	-0.57%

Volatility

SWYDX vs. PTDIX - Volatility Comparison

The current volatility for Schwab Target 2025 Index Fund (SWYDX) is 2.64%, while Principal LifeTime 2040 Fund (PTDIX) has a volatility of 4.05%. This indicates that SWYDX experiences smaller price fluctuations and is considered to be less risky than PTDIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SWYDX	PTDIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.64%	4.05%	-1.41%
Volatility (6M) Calculated over the trailing 6-month period	5.39%	8.56%	-3.17%
Volatility (1Y) Calculated over the trailing 1-year period	6.51%	10.36%	-3.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.24%	13.58%	-4.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.83%	13.86%	-4.03%

SWYDX vs. PTDIX - Expense Ratio Comparison

SWYDX has a 0.04% expense ratio, which is higher than PTDIX's 0.01% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SWYDX vs. PTDIX - Dividend Comparison

SWYDX's dividend yield for the trailing twelve months is around 5.07%, less than PTDIX's 9.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PTDIX Principal LifeTime 2040 Fund	9.13%	9.80%	12.28%	4.40%	8.61%	8.92%	6.01%	7.26%	9.28%	6.07%	4.86%	6.73%
SWYDX Schwab Target 2025 Index Fund	5.07%	5.37%	3.41%	2.58%	2.32%	1.92%	1.79%	1.91%	0.00%	1.33%	0.79%	0.00%

Frequently Asked Questions

Can I hold both SWYDX and PTDIX in my portfolio?

With a correlation of 0.95, SWYDX 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, SWYDX or PTDIX?

PTDIX has higher volatility (4.05%) compared to SWYDX (2.64%). In terms of maximum drawdown, SWYDX dropped -20.49% vs PTDIX's -54.38%.

Which has better risk-adjusted returns?

SWYDX currently has the higher Sharpe Ratio (2.23 vs 1.78), 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.