URFRX vs. LTIUX

Last updated Jun 5, 2026

URFRX (USAA Target Retirement 2040 Fund) and LTIUX (Principal LifeTime 2035 Fund) are both Target Retirement Date funds. Over the past 10 years, URFRX returned 9.43%/yr vs 9.52%/yr for LTIUX. With a 0.97 correlation, they move nearly in lockstep. URFRX charges 0.02%/yr vs 0.01%/yr for LTIUX.

Performance

URFRX vs. LTIUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in USAA Target Retirement 2040 Fund (URFRX) and Principal LifeTime 2035 Fund (LTIUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, URFRX achieves a 10.27% return, which is significantly higher than LTIUX's 6.02% return. Both investments have delivered pretty close results over the past 10 years, with URFRX having a 9.43% annualized return and LTIUX not far ahead at 9.52%.

URFRX

• 1D: -0.57%
• 1M: 3.02%
• YTD: 10.27%
• 6M: 10.83%
• 1Y: 22.11%
• 3Y*: 16.06%
• 5Y*: 8.14%
• 10Y*: 9.43%

LTIUX

• 1D: -0.64%
• 1M: 1.96%
• YTD: 6.02%
• 6M: 6.31%
• 1Y: 16.02%
• 3Y*: 14.62%
• 5Y*: 6.73%
• 10Y*: 9.52%

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

URFRX vs. LTIUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
URFRX USAA Target Retirement 2040 Fund	10.27%	17.49%	10.37%	16.75%	-14.86%	15.88%	9.22%	19.57%	-8.52%	18.48%
LTIUX Principal LifeTime 2035 Fund	6.02%	14.26%	14.13%	16.51%	-17.48%	14.07%	15.70%	23.48%	-7.37%	19.69%

Correlation

The correlation between URFRX 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	0.95
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 Aug 5, 2008	0.97

The correlation between URFRX and LTIUX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

Return for Risk

URFRX vs. LTIUX — Risk / Return Rank

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

URFRX

URFRX Risk / Return Rank: 69
URFRX Sharpe Ratio Rank: 67
URFRX Sortino Ratio Rank: 66
URFRX Omega Ratio Rank: 64
URFRX Calmar Ratio Rank: 72
URFRX Martin Ratio Rank: 77

LTIUX

LTIUX Risk / Return Rank: 46
LTIUX Sharpe Ratio Rank: 43
LTIUX Sortino Ratio Rank: 43
LTIUX Omega Ratio Rank: 44
LTIUX Calmar Ratio Rank: 43
LTIUX Martin Ratio Rank: 56

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.

URFRX vs. LTIUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for USAA Target Retirement 2040 Fund (URFRX) 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.

	URFRX	LTIUX	Difference
Sharpe ratio: Return per unit of total volatility	2.38	1.89	+0.49
Sortino ratio: Return per unit of downside risk	3.40	2.72	+0.67
Omega ratio: Gain probability vs. loss probability	1.44	1.36	+0.09
Calmar ratio: Return relative to maximum drawdown	3.27	2.49	+0.78
Martin ratio: Return relative to average drawdown	14.33	11.08	+3.24
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

URFRX vs. LTIUX - Sharpe Ratio Comparison

The current URFRX Sharpe Ratio is 2.38, which is comparable to the LTIUX Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of URFRX and LTIUX, 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

	URFRX	LTIUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.38	1.89	+0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.66	0.57	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.72	0.76	-0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.48	+0.05

Drawdowns

URFRX vs. LTIUX - Drawdown Comparison

The maximum URFRX drawdown since its inception was -39.33%, smaller than the maximum LTIUX drawdown of -49.65%. Use the drawdown chart below to compare losses from any high point for URFRX and LTIUX.

Drawdown Indicators

	URFRX	LTIUX	Difference
Max Drawdown Largest peak-to-trough decline	-39.33%	-49.65%	+10.32%
Max Drawdown (1Y) Largest decline over 1 year	-6.88%	-6.57%	-0.31%
Max Drawdown (3Y) Largest decline over 3 years	-12.41%	-11.08%	-1.33%
Max Drawdown (5Y) Largest decline over 5 years	-22.27%	-24.23%	+1.96%
Max Drawdown (10Y) Largest decline over 10 years	-28.59%	-28.12%	-0.47%
Current Drawdown Current decline from peak	-0.57%	-0.64%	+0.07%
Average Drawdown Average peak-to-trough decline	-5.19%	-6.71%	+1.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.57%	1.47%	+0.10%

Volatility

URFRX vs. LTIUX - Volatility Comparison

USAA Target Retirement 2040 Fund (URFRX) has a higher volatility of 3.06% compared to Principal LifeTime 2035 Fund (LTIUX) at 2.69%. This indicates that URFRX'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.

Volatility by Period

	URFRX	LTIUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	2.69%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	7.57%	6.97%	+0.60%
Volatility (1Y) Calculated over the trailing 1-year period	9.43%	8.64%	+0.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.33%	11.83%	+0.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.08%	12.49%	+0.59%

URFRX vs. LTIUX - Expense Ratio Comparison

URFRX has a 0.02% 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

URFRX vs. LTIUX - Dividend Comparison

URFRX's dividend yield for the trailing twelve months is around 6.39%, less than LTIUX's 8.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LTIUX Principal LifeTime 2035 Fund	8.52%	9.03%	9.46%	4.17%	7.50%	7.06%	5.35%	7.28%	7.75%	5.46%	4.28%	5.59%
URFRX USAA Target Retirement 2040 Fund	6.39%	7.05%	2.78%	3.94%	10.68%	7.78%	5.49%	12.74%	9.99%	6.53%	3.95%	2.55%

Frequently Asked Questions

Can I hold both URFRX and LTIUX in my portfolio?

With a correlation of 0.97, URFRX 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.

Which is riskier, URFRX or LTIUX?

URFRX has higher volatility (3.06%) compared to LTIUX (2.69%). In terms of maximum drawdown, URFRX dropped -39.33% vs LTIUX's -49.65%.

Which has better risk-adjusted returns?

URFRX currently has the higher Sharpe Ratio (2.38 vs 1.89), 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.