LCAP vs. USMC

Last updated Jun 24, 2026

LCAP (Principal Capital Appreciation Select ETF) and USMC (Principal U.S. Mega-Cap ETF) are both exchange-traded funds - LCAP is a Large Cap Blend Equities fund actively managed by Principal, while USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index. LCAP is actively managed, while USMC is passively managed. Over the past year, LCAP returned 23.78% vs 20.33% for USMC. Their correlation of 0.89 suggests significant overlap in exposure. LCAP charges 0.29%/yr vs 0.12%/yr for USMC.

Performance

LCAP vs. USMC - Performance Comparison

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

Returns By Period

In the year-to-date period, LCAP achieves a 9.75% return, which is significantly higher than USMC's 6.42% return.

LCAP

• 1D: -1.40%
• 1M: -1.22%
• YTD: 9.75%
• 6M: 8.45%
• 1Y: 23.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —

USMC

• 1D: -1.37%
• 1M: -0.32%
• YTD: 6.42%
• 6M: 5.31%
• 1Y: 20.33%
• 3Y*: 20.41%
• 5Y*: 14.61%
• 10Y*: —

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

LCAP vs. USMC - Yearly Performance Comparison

	2026 (YTD)	2025
LCAP Principal Capital Appreciation Select ETF	9.75%	17.53%
USMC Principal U.S. Mega-Cap ETF	6.42%	17.56%

Correlation

The correlation between LCAP and USMC is 0.87, 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	0.87
Correlation (All Time) Calculated using the full available price history since Mar 26, 2025	0.89

The correlation between LCAP and USMC has been stable across timeframes, ranging from 0.87 to 0.89 - a consistent structural relationship.

Return for Risk

LCAP vs. USMC — Risk / Return Rank

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

LCAP

LCAP Risk / Return Rank: 58
LCAP Sharpe Ratio Rank: 58
LCAP Sortino Ratio Rank: 59
LCAP Omega Ratio Rank: 56
LCAP Calmar Ratio Rank: 57
LCAP Martin Ratio Rank: 62

USMC

USMC Risk / Return Rank: 47
USMC Sharpe Ratio Rank: 50
USMC Sortino Ratio Rank: 50
USMC Omega Ratio Rank: 48
USMC Calmar Ratio Rank: 42
USMC Martin Ratio Rank: 47

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. USMC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Capital Appreciation Select ETF (LCAP) and Principal U.S. Mega-Cap ETF (USMC). 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	USMC	Difference
Sharpe ratio: Return per unit of total volatility	1.79	1.66	+0.13
Sortino ratio: Return per unit of downside risk	2.52	2.35	+0.17
Omega ratio: Gain probability vs. loss probability	1.32	1.29	+0.03
Calmar ratio: Return relative to maximum drawdown	2.56	1.98	+0.58
Martin ratio: Return relative to average drawdown	10.19	7.47	+2.72

LCAP vs. USMC - Sharpe Ratio Comparison

The current LCAP Sharpe Ratio is 1.79, which is comparable to the USMC Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of LCAP and USMC, 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. USMC - Drawdown Comparison

The maximum LCAP drawdown since its inception was -11.78%, smaller than the maximum USMC drawdown of -29.97%. Use the drawdown chart below to compare losses from any high point for LCAP and USMC.

Drawdown Indicators

	LCAP	USMC	Difference
Max Drawdown Largest peak-to-trough decline	-11.78%	-29.97%	+18.19%
Max Drawdown (1Y) Largest decline over 1 year	-9.32%	-10.30%	+0.98%
Max Drawdown (3Y) Largest decline over 3 years	—	-19.12%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.09%	—
Current Drawdown Current decline from peak	-2.88%	-2.46%	-0.42%
Average Drawdown Average peak-to-trough decline	-1.68%	-4.39%	+2.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.34%	2.73%	-0.39%

Volatility

LCAP vs. USMC - Volatility Comparison

Principal Capital Appreciation Select ETF (LCAP) has a higher volatility of 4.79% compared to Principal U.S. Mega-Cap ETF (USMC) at 4.43%. This indicates that LCAP's price experiences larger fluctuations and is considered to be riskier than USMC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCAP	USMC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.79%	4.43%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	10.79%	9.43%	+1.36%
Volatility (1Y) Calculated over the trailing 1-year period	13.39%	12.32%	+1.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.98%	16.43%	+0.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.98%	18.25%	-1.27%

LCAP vs. USMC - Expense Ratio Comparison

LCAP has a 0.29% expense ratio, which is higher than USMC's 0.12% expense ratio.

Dividends

LCAP vs. USMC - Dividend Comparison

LCAP's dividend yield for the trailing twelve months is around 0.10%, less than USMC's 0.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
USMC Principal U.S. Mega-Cap ETF	0.76%	0.79%	1.04%	1.35%	1.78%	1.53%	1.55%	2.01%	2.28%	0.24%

Frequently Asked Questions

Can I hold both LCAP and USMC in my portfolio?

LCAP and USMC have a correlation of 0.87, 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 USMC?

LCAP has higher volatility (4.79%) compared to USMC (4.43%). In terms of maximum drawdown, LCAP dropped -11.78% vs USMC's -29.97%.

Which ETF is better, LCAP or USMC?

On 1-year performance, LCAP leads with 23.78% vs 20.33% for USMC. On fees, USMC is cheaper at 0.12% per year. On volatility, USMC has been the lower-risk option at 4.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCAP or USMC?

Over the 1-year period, LCAP has performed better with a 23.78% return vs 20.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCAP or USMC?

USMC is cheaper with a 0.12% expense ratio, compared with 0.29% for LCAP.

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

USMC has the higher dividend yield at 0.76%, compared with 0.10% for LCAP.

What is the main difference between LCAP and USMC?

LCAP is categorized as Large Cap Blend Equities, while USMC is Large Cap Growth Equities. Their fees differ too: 0.29% for LCAP and 0.12% for USMC.

Which has better risk-adjusted returns?

LCAP currently has the higher Sharpe Ratio (1.79 vs 1.66), 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.