TRRFX vs. LTSTX

Last updated Jun 3, 2026

TRRFX (T. Rowe Price Retirement 2005 Fund) and LTSTX (Principal LifeTime 2025 Fund) are both Target Retirement Date funds. Over the past 10 years, TRRFX returned 5.61%/yr vs 8.04%/yr for LTSTX. With a 0.95 correlation, they move nearly in lockstep. TRRFX charges 0.49%/yr vs 0.01%/yr for LTSTX.

Performance

TRRFX vs. LTSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Retirement 2005 Fund (TRRFX) and Principal LifeTime 2025 Fund (LTSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with TRRFX having a 5.23% return and LTSTX slightly lower at 5.01%. Over the past 10 years, TRRFX has underperformed LTSTX with an annualized return of 5.61%, while LTSTX has yielded a comparatively higher 8.04% annualized return.

TRRFX

• 1D: 0.00%
• 1M: 1.61%
• YTD: 5.23%
• 6M: 0.15%
• 1Y: 7.18%
• 3Y*: 8.48%
• 5Y*: 3.56%
• 10Y*: 5.61%

LTSTX

• 1D: 0.26%
• 1M: 2.04%
• YTD: 5.01%
• 6M: 5.40%
• 1Y: 13.75%
• 3Y*: 12.27%
• 5Y*: 5.57%
• 10Y*: 8.04%

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

TRRFX vs. LTSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TRRFX T. Rowe Price Retirement 2005 Fund	5.23%	5.43%	8.04%	11.97%	-13.61%	8.13%	11.24%	15.09%	-3.29%	10.67%
LTSTX Principal LifeTime 2025 Fund	5.01%	12.16%	11.91%	13.30%	-15.23%	10.91%	13.70%	20.50%	-6.41%	16.75%

Correlation

The correlation between TRRFX and LTSTX is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Mar 3, 2008	0.95

The correlation between TRRFX and LTSTX has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

Return for Risk

TRRFX vs. LTSTX — Risk / Return Rank

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

TRRFX

TRRFX Risk / Return Rank: 13
TRRFX Sharpe Ratio Rank: 13
TRRFX Sortino Ratio Rank: 10
TRRFX Omega Ratio Rank: 20
TRRFX Calmar Ratio Rank: 10
TRRFX Martin Ratio Rank: 10

LTSTX

LTSTX Risk / Return Rank: 54
LTSTX Sharpe Ratio Rank: 51
LTSTX Sortino Ratio Rank: 53
LTSTX Omega Ratio Rank: 54
LTSTX Calmar Ratio Rank: 49
LTSTX 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.

TRRFX vs. LTSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Retirement 2005 Fund (TRRFX) 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.

	TRRFX	LTSTX	Difference
Sharpe ratio Return per unit of total volatility	1.03	2.11	-1.08
Sortino ratio Return per unit of downside risk	1.26	3.05	-1.79
Omega ratio Gain probability vs. loss probability	1.24	1.41	-0.17
Calmar ratio Return relative to maximum drawdown	1.05	2.68	-1.63
Martin ratio Return relative to average drawdown	3.01	12.12	-9.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TRRFX vs. LTSTX - Sharpe Ratio Comparison

The current TRRFX Sharpe Ratio is 1.03, which is lower than the LTSTX Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of TRRFX and LTSTX, 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

	TRRFX	LTSTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.03	2.11	-1.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	0.61	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.77	0.82	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.48	+0.16

Drawdowns

TRRFX vs. LTSTX - Drawdown Comparison

The maximum TRRFX drawdown since its inception was -33.29%, smaller than the maximum LTSTX drawdown of -48.17%. Use the drawdown chart below to compare losses from any high point for TRRFX and LTSTX.

Drawdown Indicators

	TRRFX	LTSTX	Difference
Max Drawdown Largest peak-to-trough decline	-33.29%	-48.17%	+14.88%
Max Drawdown (1Y) Largest decline over 1 year	-6.90%	-5.24%	-1.66%
Max Drawdown (3Y) Largest decline over 3 years	-6.90%	-8.12%	+1.22%
Max Drawdown (5Y) Largest decline over 5 years	-18.82%	-21.01%	+2.19%
Max Drawdown (10Y) Largest decline over 10 years	-18.82%	-23.33%	+4.51%
Current Drawdown Current decline from peak	-0.38%	0.00%	-0.38%
Average Drawdown Average peak-to-trough decline	-3.50%	-6.16%	+2.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.42%	1.16%	+1.26%

Volatility

TRRFX vs. LTSTX - Volatility Comparison

The current volatility for T. Rowe Price Retirement 2005 Fund (TRRFX) is 1.79%, while Principal LifeTime 2025 Fund (LTSTX) has a volatility of 2.03%. This indicates that TRRFX experiences smaller price fluctuations and is considered to be less risky than LTSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TRRFX	LTSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.79%	2.03%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	6.74%	5.39%	+1.35%
Volatility (1Y) Calculated over the trailing 1-year period	7.38%	6.65%	+0.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.82%	9.18%	-1.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.37%	9.83%	-2.46%

TRRFX vs. LTSTX - Expense Ratio Comparison

TRRFX has a 0.49% expense ratio, which is higher than LTSTX's 0.01% expense ratio.

Dividends

TRRFX vs. LTSTX - Dividend Comparison

TRRFX has not paid dividends to shareholders, while LTSTX's dividend yield for the trailing twelve months is around 11.61%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LTSTX Principal LifeTime 2025 Fund	11.61%	12.19%	9.74%	4.26%	8.00%	7.66%	5.25%	6.91%	6.39%	4.75%	3.65%	8.91%
TRRFX T. Rowe Price Retirement 2005 Fund	0.00%	0.00%	3.87%	4.24%	10.43%	10.54%	8.55%	3.65%	6.97%	4.25%	1.28%	1.69%

Frequently Asked Questions

Can I hold both TRRFX and LTSTX in my portfolio?

With a correlation of 0.92, TRRFX 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.

Which is riskier, TRRFX or LTSTX?

LTSTX has higher volatility (2.03%) compared to TRRFX (1.79%). In terms of maximum drawdown, TRRFX dropped -33.29% vs LTSTX's -48.17%.

Which has better risk-adjusted returns?

LTSTX currently has the higher Sharpe Ratio (2.11 vs 1.03), 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.