TCLOX vs. LTSTX
TCLOX (TIAA-CREF Lifecycle 2040 Fund) and LTSTX (Principal LifeTime 2025 Fund) are both Target Retirement Date funds. Over the past 10 years, TCLOX returned 9.76%/yr vs 7.73%/yr for LTSTX. Their 0.97 correlation means they have historically moved very closely together. TCLOX charges 0.49%/yr vs 0.01%/yr for LTSTX.
Performance
TCLOX vs. LTSTX - Performance Comparison
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Returns By Period
In the year-to-date period, TCLOX achieves a 6.75% return, which is significantly higher than LTSTX's 4.47% return. Over the past 10 years, TCLOX has outperformed LTSTX with an annualized return of 9.76%, while LTSTX has yielded a comparatively lower 7.73% annualized return.
TCLOX
- 1D
- 1.77%
- 1M
- -0.38%
- 6M
- 4.54%
- YTD
- 6.75%
- 1Y
- 16.08%
- 3Y*
- 13.07%
- 5Y*
- 7.11%
- 10Y*
- 9.76%
- ALL TIME*
- 7.52%
LTSTX
- 1D
- 0.79%
- 1M
- -0.17%
- 6M
- 2.78%
- YTD
- 4.47%
- 1Y
- 10.06%
- 3Y*
- 10.75%
- 5Y*
- 5.16%
- 10Y*
- 7.73%
- ALL TIME*
- 6.35%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $0.00 | $0.00 | $0.00 |
TCLOX vs. LTSTX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TCLOX TIAA-CREF Lifecycle 2040 Fund | 6.75% | 16.72% | 12.55% | 18.04% | -16.86% | 13.93% | 16.06% | 24.38% | -9.26% | 20.21% |
LTSTX Principal LifeTime 2025 Fund | 4.47% | 12.16% | 11.91% | 13.30% | -15.23% | 10.91% | 13.70% | 20.50% | -6.41% | 16.75% |
Correlation
The correlation between TCLOX and LTSTX is 0.96 - they have historically moved very closely together. At this level, their price movements offset little of one another.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.96 |
Correlation (3Y) Balances recent behavior with more history. | 0.94 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.95 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.95 |
Correlation (All Time) Calculated using the full available price history since Feb 29, 2008 | 0.97 |
The correlation between TCLOX and LTSTX has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.
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Return for Risk
TCLOX vs. LTSTX — Risk / Return Rank
TCLOX
LTSTX
TCLOX vs. LTSTX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for TIAA-CREF Lifecycle 2040 Fund (TCLOX) 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.
| TCLOX | LTSTX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.04 | ||
| Sortino ratioReturn per unit of downside risk | +0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.24 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.84 | 1.80 | +0.04 |
| Martin ratioReturn relative to average drawdown | 7.73 | 7.79 | -0.06 |
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Drawdowns
TCLOX vs. LTSTX - Drawdown Comparison
The maximum TCLOX drawdown since its inception was -53.88%, which is greater than LTSTX's maximum drawdown of -48.17%. Use the drawdown chart below to compare losses from any high point for TCLOX and LTSTX.
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Drawdown Indicators
| TCLOX | LTSTX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -53.88% | -48.17% | -5.71% |
Max Drawdown (1Y)Largest decline over 1 year | -8.09% | -5.24% | -2.85% |
Max Drawdown (3Y)Largest decline over 3 years | -13.40% | -8.12% | -5.28% |
Max Drawdown (5Y)Largest decline over 5 years | -24.27% | -21.01% | -3.26% |
Max Drawdown (10Y)Largest decline over 10 years | -30.12% | -23.33% | -6.79% |
Current DrawdownCurrent decline from peak | -1.24% | -0.78% | -0.46% |
Average DrawdownAverage peak-to-trough decline | -7.54% | -6.11% | -1.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.92% | 1.21% | +0.71% |
Volatility
TCLOX vs. LTSTX - Volatility Comparison
TIAA-CREF Lifecycle 2040 Fund (TCLOX) has a higher volatility of 3.25% compared to Principal LifeTime 2025 Fund (LTSTX) at 1.95%. This indicates that TCLOX's price experiences larger fluctuations and is considered to be riskier than LTSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TCLOX | LTSTX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.25% | 1.95% | +1.30% |
Volatility (6M)Calculated over the trailing 6-month period | 9.03% | 5.99% | +3.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.95% | 7.19% | +3.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.96% | 9.23% | +3.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.14% | 9.76% | +4.38% |
TCLOX vs. LTSTX - Expense Ratio Comparison
TCLOX has a 0.49% expense ratio, which is higher than LTSTX's 0.01% expense ratio.
Dividends
TCLOX vs. LTSTX - Dividend Comparison
TCLOX's dividend yield for the trailing twelve months is around 4.62%, less than LTSTX's 11.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LTSTX Principal LifeTime 2025 Fund | 11.67% | 12.19% | 9.74% | 4.26% | 8.00% | 7.66% | 5.25% | 6.91% | 6.39% | 4.75% | 3.65% | 8.91% |
TCLOX TIAA-CREF Lifecycle 2040 Fund | 4.62% | 4.93% | 2.49% | 1.37% | 5.82% | 8.32% | 5.54% | 3.87% | 7.20% | 2.84% | 5.28% | 5.77% |
Frequently Asked Questions
With a correlation of 0.96, TCLOX 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.
TCLOX has higher volatility (3.25%) compared to LTSTX (1.95%). In terms of maximum drawdown, TCLOX dropped -53.88% vs LTSTX's -48.17%.
TCLOX currently has the higher Sharpe Ratio (1.36 vs 1.32), 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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