LCAP vs. PSET

Last updated Jun 23, 2026

LCAP (Principal Capital Appreciation Select ETF) and PSET (Principal Quality ETF) are both exchange-traded funds - LCAP is a Large Cap Blend Equities fund actively managed by Principal, while PSET is a Large Cap Growth Equities fund tracking the NASDAQ US Price Setters. LCAP is actively managed, while PSET is passively managed. Over the past year, LCAP returned 26.90% vs 6.76% for PSET. Their correlation of 0.87 suggests significant overlap in exposure. LCAP charges 0.29%/yr vs 0.15%/yr for PSET.

Performance

LCAP vs. PSET - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Capital Appreciation Select ETF (LCAP) and Principal Quality ETF (PSET). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCAP achieves a 11.31% return, which is significantly higher than PSET's -1.95% return.

LCAP

• 1D: -0.48%
• 1M: 0.18%
• YTD: 11.31%
• 6M: 10.79%
• 1Y: 26.90%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PSET

• 1D: -0.76%
• 1M: -1.04%
• YTD: -1.95%
• 6M: -2.53%
• 1Y: 6.76%
• 3Y*: 11.66%
• 5Y*: 8.30%
• 10Y*: 12.57%

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

LCAP vs. PSET - Yearly Performance Comparison

	2026 (YTD)	2025
LCAP Principal Capital Appreciation Select ETF	11.31%	17.53%
PSET Principal Quality ETF	-1.95%	11.97%

Correlation

The correlation between LCAP and PSET is 0.85, 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	0.85
Correlation (All Time) Calculated using the full available price history since Mar 26, 2025	0.87

The correlation between LCAP and PSET has been stable across timeframes, ranging from 0.85 to 0.87 - a consistent structural relationship.

Return for Risk

LCAP vs. PSET — Risk / Return Rank

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

LCAP

LCAP Risk / Return Rank: 63
LCAP Sharpe Ratio Rank: 64
LCAP Sortino Ratio Rank: 63
LCAP Omega Ratio Rank: 62
LCAP Calmar Ratio Rank: 60
LCAP Martin Ratio Rank: 65

PSET

PSET Risk / Return Rank: 16
PSET Sharpe Ratio Rank: 17
PSET Sortino Ratio Rank: 15
PSET Omega Ratio Rank: 15
PSET Calmar Ratio Rank: 15
PSET Martin Ratio Rank: 17

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.

LCAP vs. PSET - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Capital Appreciation Select ETF (LCAP) and Principal Quality ETF (PSET). 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.

	LCAP	PSET	Difference
Sharpe ratio: Return per unit of total volatility	2.03	0.52	+1.51
Sortino ratio: Return per unit of downside risk	2.84	0.81	+2.03
Omega ratio: Gain probability vs. loss probability	1.36	1.10	+0.26
Calmar ratio: Return relative to maximum drawdown	2.90	0.52	+2.37
Martin ratio: Return relative to average drawdown	11.57	1.74	+9.83

LCAP vs. PSET - Sharpe Ratio Comparison

The current LCAP Sharpe Ratio is 2.03, which is higher than the PSET Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of LCAP and PSET, 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

LCAP vs. PSET - Drawdown Comparison

The maximum LCAP drawdown since its inception was -11.78%, smaller than the maximum PSET drawdown of -34.74%. Use the drawdown chart below to compare losses from any high point for LCAP and PSET.

Drawdown Indicators

	LCAP	PSET	Difference
Max Drawdown Largest peak-to-trough decline	-11.78%	-34.74%	+22.96%
Max Drawdown (1Y) Largest decline over 1 year	-9.32%	-12.94%	+3.62%
Max Drawdown (3Y) Largest decline over 3 years	—	-21.96%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-25.61%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-34.74%	—
Current Drawdown Current decline from peak	-1.50%	-4.03%	+2.53%
Average Drawdown Average peak-to-trough decline	-1.68%	-4.58%	+2.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.33%	3.89%	-1.56%

Volatility

LCAP vs. PSET - Volatility Comparison

Principal Capital Appreciation Select ETF (LCAP) has a higher volatility of 4.58% compared to Principal Quality ETF (PSET) at 4.26%. This indicates that LCAP's price experiences larger fluctuations and is considered to be riskier than PSET based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCAP	PSET	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	4.26%	+0.32%
Volatility (6M) Calculated over the trailing 6-month period	10.71%	10.24%	+0.47%
Volatility (1Y) Calculated over the trailing 1-year period	13.33%	12.96%	+0.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.96%	17.57%	-0.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.96%	18.11%	-1.15%

LCAP vs. PSET - Expense Ratio Comparison

LCAP has a 0.29% expense ratio, which is higher than PSET's 0.15% expense ratio.

Dividends

LCAP vs. PSET - Dividend Comparison

LCAP's dividend yield for the trailing twelve months is around 0.10%, less than PSET's 0.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
LCAP Principal Capital Appreciation Select ETF	0.10%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PSET Principal Quality ETF	0.64%	0.59%	0.69%	0.85%	1.47%	0.89%	1.09%	1.52%	1.33%	1.02%	1.26%

Frequently Asked Questions

Can I hold both LCAP and PSET in my portfolio?

LCAP and PSET have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LCAP or PSET?

LCAP has higher volatility (4.58%) compared to PSET (4.26%). In terms of maximum drawdown, LCAP dropped -11.78% vs PSET's -34.74%.

Which ETF is better, LCAP or PSET?

On 1-year performance, LCAP leads with 26.90% vs 6.76% for PSET. On fees, PSET is cheaper at 0.15% per year. On volatility, PSET has been the lower-risk option at 4.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCAP or PSET?

Over the 1-year period, LCAP has performed better with a 26.90% return vs 6.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCAP or PSET?

PSET is cheaper with a 0.15% expense ratio, compared with 0.29% for LCAP.

Which ETF pays a higher dividend yield, LCAP or PSET?

PSET has the higher dividend yield at 0.64%, compared with 0.10% for LCAP.

What is the main difference between LCAP and PSET?

LCAP is categorized as Large Cap Blend Equities, while PSET is Large Cap Growth Equities. Their fees differ too: 0.29% for LCAP and 0.15% for PSET.

Which has better risk-adjusted returns?

LCAP currently has the higher Sharpe Ratio (2.03 vs 0.52), 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.