PSET vs. ILCG

Last updated Jun 25, 2026

PSET (Principal Quality ETF) and ILCG (iShares Morningstar Growth ETF) are both Large Cap Growth Equities funds - PSET tracks the NASDAQ US Price Setters while ILCG tracks the Morningstar US Large-Mid Cap Broad Growth Index Gross. Both are passively managed. Over the past 10 years, PSET returned 12.55%/yr vs 18.09%/yr for ILCG. A 0.68 correlation means they provide meaningful diversification when combined. PSET charges 0.15%/yr vs 0.04%/yr for ILCG.

Performance

PSET vs. ILCG - Performance Comparison

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

Returns By Period

In the year-to-date period, PSET achieves a -2.15% return, which is significantly lower than ILCG's 9.10% return. Over the past 10 years, PSET has underperformed ILCG with an annualized return of 12.55%, while ILCG has yielded a comparatively higher 18.09% annualized return.

PSET

• 1D: 0.49%
• 1M: -1.25%
• YTD: -2.15%
• 6M: -3.42%
• 1Y: 4.23%
• 3Y*: 11.59%
• 5Y*: 8.13%
• 10Y*: 12.55%

ILCG

• 1D: -0.11%
• 1M: -1.90%
• YTD: 9.10%
• 6M: 7.52%
• 1Y: 20.09%
• 3Y*: 23.75%
• 5Y*: 12.68%
• 10Y*: 18.09%

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

PSET vs. ILCG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSET Principal Quality ETF	-2.15%	7.27%	17.65%	24.07%	-16.52%	29.59%	16.20%	34.85%	-2.29%	24.63%
ILCG iShares Morningstar Growth ETF	9.10%	16.71%	32.82%	40.41%	-31.75%	24.33%	38.56%	33.22%	2.06%	30.57%

Correlation

The correlation between PSET and ILCG is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Mar 22, 2016	0.68

The correlation between PSET and ILCG shifts across timeframes, from 0.68 (all time) to 0.87 (5 years), reflecting how their relationship changes across market environments.

PSET vs. ILCG - Sectors Allocation Comparison

Sectors	PSET	ILCG
Technology	38.5%	53.1%
Industrials	19.0%	7.7%
Financial Services	13.8%	5.5%
Healthcare	10.8%	5.2%
Communication Services	6.6%	13.5%
Consumer Cyclical	5.5%	10.1%
Basic Materials	3.3%	1.0%
Energy	1.4%	0.4%
Consumer Defensive	1.1%	1.4%
Real Estate	-	1.3%
Utilities	-	0.7%

Return for Risk

PSET vs. ILCG — Risk / Return Rank

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

PSET

PSET Risk / Return Rank: 13
PSET Sharpe Ratio Rank: 14
PSET Sortino Ratio Rank: 13
PSET Omega Ratio Rank: 13
PSET Calmar Ratio Rank: 13
PSET Martin Ratio Rank: 14

ILCG

ILCG Risk / Return Rank: 32
ILCG Sharpe Ratio Rank: 35
ILCG Sortino Ratio Rank: 32
ILCG Omega Ratio Rank: 34
ILCG Calmar Ratio Rank: 28
ILCG Martin Ratio Rank: 32

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.

PSET vs. ILCG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Quality ETF (PSET) and iShares Morningstar Growth ETF (ILCG). 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.

	PSET	ILCG	Difference
Sharpe ratio: Return per unit of total volatility	0.33	1.15	-0.82
Sortino ratio: Return per unit of downside risk	0.54	1.60	-1.05
Omega ratio: Gain probability vs. loss probability	1.07	1.21	-0.15
Calmar ratio: Return relative to maximum drawdown	0.33	1.29	-0.96
Martin ratio: Return relative to average drawdown	1.08	4.42	-3.34

PSET vs. ILCG - Sharpe Ratio Comparison

The current PSET Sharpe Ratio is 0.33, which is lower than the ILCG Sharpe Ratio of 1.15. The chart below compares the historical Sharpe Ratios of PSET and ILCG, 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

PSET vs. ILCG - Drawdown Comparison

The maximum PSET drawdown since its inception was -34.74%, smaller than the maximum ILCG drawdown of -52.98%. Use the drawdown chart below to compare losses from any high point for PSET and ILCG.

Drawdown Indicators

	PSET	ILCG	Difference
Max Drawdown Largest peak-to-trough decline	-34.74%	-52.98%	+18.24%
Max Drawdown (1Y) Largest decline over 1 year	-12.94%	-15.65%	+2.71%
Max Drawdown (3Y) Largest decline over 3 years	-21.96%	-23.10%	+1.14%
Max Drawdown (5Y) Largest decline over 5 years	-25.61%	-35.38%	+9.77%
Max Drawdown (10Y) Largest decline over 10 years	-34.74%	-35.38%	+0.64%
Current Drawdown Current decline from peak	-4.22%	-5.68%	+1.46%
Average Drawdown Average peak-to-trough decline	-4.58%	-8.21%	+3.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.91%	4.56%	-0.65%

Volatility

PSET vs. ILCG - Volatility Comparison

The current volatility for Principal Quality ETF (PSET) is 4.30%, while iShares Morningstar Growth ETF (ILCG) has a volatility of 7.82%. This indicates that PSET experiences smaller price fluctuations and is considered to be less risky than ILCG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSET	ILCG	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.30%	7.82%	-3.52%
Volatility (6M) Calculated over the trailing 6-month period	10.23%	14.46%	-4.23%
Volatility (1Y) Calculated over the trailing 1-year period	12.93%	17.65%	-4.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.58%	22.22%	-4.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.10%	21.62%	-3.52%

PSET vs. ILCG - Expense Ratio Comparison

PSET has a 0.15% expense ratio, which is higher than ILCG's 0.04% 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

PSET vs. ILCG - Dividend Comparison

PSET's dividend yield for the trailing twelve months is around 0.64%, more than ILCG's 0.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ILCG iShares Morningstar Growth ETF	0.42%	0.47%	0.50%	0.69%	0.75%	0.34%	0.28%	0.54%	0.81%	0.89%	0.95%	0.99%
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%	0.00%

Frequently Asked Questions

Can I hold both PSET and ILCG in my portfolio?

PSET and ILCG have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSET or ILCG?

ILCG has higher volatility (7.82%) compared to PSET (4.30%). In terms of maximum drawdown, PSET dropped -34.74% vs ILCG's -52.98%.

Which ETF is better, PSET or ILCG?

On 10-year performance, ILCG leads with 18.09% vs 12.55% for PSET. On fees, ILCG is cheaper at 0.04% per year. On volatility, PSET has been the lower-risk option at 4.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSET or ILCG?

Over the 10-year period, ILCG has performed better with a 18.09% return vs 12.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSET or ILCG?

ILCG is cheaper with a 0.04% expense ratio, compared with 0.15% for PSET.

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

PSET has the higher dividend yield at 0.64%, compared with 0.42% for ILCG.

What is the main difference between PSET and ILCG?

PSET tracks NASDAQ US Price Setters, while ILCG tracks Morningstar US Large-Mid Cap Broad Growth Index Gross. They also come from different issuers: Principal and iShares. Their fees differ too: 0.15% for PSET and 0.04% for ILCG.

Which has better risk-adjusted returns?

ILCG currently has the higher Sharpe Ratio (1.15 vs 0.33), 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.