SWYGX vs. LTIUX
SWYGX (Schwab Target 2040 Index Fund) and LTIUX (Principal LifeTime 2035 Fund) are both Target Retirement Date funds. Over the past 5 years, SWYGX returned 8.73%/yr vs 6.76%/yr for LTIUX. With a 0.97 correlation, they move nearly in lockstep. SWYGX charges 0.04%/yr vs 0.01%/yr for LTIUX.
Performance
SWYGX vs. LTIUX - Performance Comparison
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Returns By Period
In the year-to-date period, SWYGX achieves a 10.08% return, which is significantly higher than LTIUX's 6.25% return.
SWYGX
- 1D
- 0.32%
- 1M
- -0.00%
- 6M
- 7.52%
- YTD
- 10.08%
- 1Y
- 19.33%
- 3Y*
- 15.48%
- 5Y*
- 8.73%
- 10Y*
- —
LTIUX
- 1D
- 0.28%
- 1M
- -0.00%
- 6M
- 4.21%
- YTD
- 6.25%
- 1Y
- 13.53%
- 3Y*
- 13.26%
- 5Y*
- 6.76%
- 10Y*
- 9.38%
SWYGX vs. LTIUX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SWYGX Schwab Target 2040 Index Fund | 10.08% | 17.57% | 12.83% | 19.45% | -16.94% | 15.68% | 14.19% | 23.63% | -6.62% | 19.12% |
LTIUX Principal LifeTime 2035 Fund | 6.25% | 14.26% | 14.13% | 16.51% | -17.48% | 14.07% | 15.70% | 23.48% | -7.37% | 19.69% |
Correlation
The correlation between SWYGX and LTIUX 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 | 0.97 |
Correlation (All Time) Calculated using the full available price history since Aug 30, 2016 | 0.97 |
The correlation between SWYGX and LTIUX has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.
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Return for Risk
SWYGX vs. LTIUX — Risk / Return Rank
SWYGX
LTIUX
SWYGX vs. LTIUX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Target 2040 Index Fund (SWYGX) and Principal LifeTime 2035 Fund (LTIUX). 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.
| SWYGX | LTIUX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.46 | ||
| Sortino ratioReturn per unit of downside risk | +0.60 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.27 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.65 | 2.02 | +0.63 |
| Martin ratioReturn relative to average drawdown | 11.55 | 8.72 | +2.83 |
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Drawdowns
SWYGX vs. LTIUX - Drawdown Comparison
The maximum SWYGX drawdown since its inception was -27.62%, smaller than the maximum LTIUX drawdown of -49.65%. Use the drawdown chart below to compare losses from any high point for SWYGX and LTIUX.
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Drawdown Indicators
| SWYGX | LTIUX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.62% | -49.65% | +22.03% |
Max Drawdown (1Y)Largest decline over 1 year | -7.50% | -6.57% | -0.93% |
Max Drawdown (3Y)Largest decline over 3 years | -12.96% | -11.08% | -1.88% |
Max Drawdown (5Y)Largest decline over 5 years | -24.07% | -24.23% | +0.16% |
Max Drawdown (10Y)Largest decline over 10 years | — | -28.12% | — |
Current DrawdownCurrent decline from peak | -0.27% | -0.49% | +0.22% |
Average DrawdownAverage peak-to-trough decline | -4.13% | -6.67% | +2.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.72% | 1.52% | +0.20% |
Volatility
SWYGX vs. LTIUX - Volatility Comparison
Schwab Target 2040 Index Fund (SWYGX) has a higher volatility of 2.99% compared to Principal LifeTime 2035 Fund (LTIUX) at 2.64%. This indicates that SWYGX's price experiences larger fluctuations and is considered to be riskier than LTIUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SWYGX | LTIUX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.99% | 2.64% | +0.35% |
Volatility (6M)Calculated over the trailing 6-month period | 8.69% | 7.70% | +0.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.45% | 9.19% | +1.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.28% | 11.92% | +1.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.01% | 12.42% | +1.59% |
SWYGX vs. LTIUX - Expense Ratio Comparison
SWYGX has a 0.04% expense ratio, which is higher than LTIUX'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
SWYGX vs. LTIUX - Dividend Comparison
SWYGX's dividend yield for the trailing twelve months is around 2.03%, less than LTIUX's 8.50% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LTIUX Principal LifeTime 2035 Fund | 8.50% | 9.03% | 9.46% | 4.17% | 7.50% | 7.06% | 5.35% | 7.28% | 7.75% | 5.46% | 4.28% | 5.59% |
SWYGX Schwab Target 2040 Index Fund | 2.03% | 2.23% | 2.28% | 2.06% | 2.03% | 1.80% | 1.72% | 1.95% | 2.21% | 1.44% | 1.13% | 0.00% |
Frequently Asked Questions
With a correlation of 0.97, SWYGX and LTIUX 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.
SWYGX has higher volatility (2.99%) compared to LTIUX (2.64%). In terms of maximum drawdown, SWYGX dropped -27.62% vs LTIUX's -49.65%.
SWYGX currently has the higher Sharpe Ratio (1.90 vs 1.44), 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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