PSET vs. LCAP

Last updated Jun 5, 2026

PSET (Principal Quality ETF) and LCAP (Principal Capital Appreciation Select ETF) are both exchange-traded funds - PSET is a Large Cap Growth Equities fund tracking the NASDAQ US Price Setters, while LCAP is a Large Cap Blend Equities fund actively managed by Principal. PSET is passively managed, while LCAP is actively managed. Over the past year, PSET returned 8.25% vs 28.18% for LCAP. Their correlation of 0.87 suggests significant overlap in exposure. PSET charges 0.15%/yr vs 0.29%/yr for LCAP.

Performance

PSET vs. LCAP - Performance Comparison

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

Returns By Period

In the year-to-date period, PSET achieves a 0.31% return, which is significantly lower than LCAP's 12.73% return.

PSET

• 1D: 0.80%
• 1M: 2.98%
• YTD: 0.31%
• 6M: 0.01%
• 1Y: 8.25%
• 3Y*: 13.47%
• 5Y*: 9.03%
• 10Y*: 12.82%

LCAP

• 1D: 0.63%
• 1M: 3.38%
• YTD: 12.73%
• 6M: 12.24%
• 1Y: 28.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PSET vs. LCAP - Yearly Performance Comparison

	2026 (YTD)	2025
PSET Principal Quality ETF	0.31%	13.49%
LCAP Principal Capital Appreciation Select ETF	12.73%	18.16%

Correlation

The correlation between PSET and LCAP 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 27, 2025	0.87

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

PSET vs. LCAP - Sectors Allocation Comparison

Sectors	PSET	LCAP
Technology	37.9%	36.0%
Industrials	19.1%	6.1%
Financial Services	14.3%	12.5%
Healthcare	10.8%	9.3%
Communication Services	6.7%	11.0%
Consumer Cyclical	5.4%	13.3%
Basic Materials	3.3%	1.6%
Energy	1.4%	3.8%
Consumer Defensive	1.1%	1.4%
Real Estate	-	1.6%
Utilities	-	3.2%

Return for Risk

PSET vs. LCAP — Risk / Return Rank

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

PSET

PSET Risk / Return Rank: 19
PSET Sharpe Ratio Rank: 21
PSET Sortino Ratio Rank: 20
PSET Omega Ratio Rank: 19
PSET Calmar Ratio Rank: 17
PSET Martin Ratio Rank: 20

LCAP

LCAP Risk / Return Rank: 67
LCAP Sharpe Ratio Rank: 68
LCAP Sortino Ratio Rank: 70
LCAP Omega Ratio Rank: 66
LCAP Calmar Ratio Rank: 62
LCAP Martin Ratio Rank: 69

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. LCAP - Risk-Adjusted Trends Comparison

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

	PSET	LCAP	Difference
Sharpe ratio: Return per unit of total volatility	0.65	2.21	-1.55
Sortino ratio: Return per unit of downside risk	1.00	3.11	-2.11
Omega ratio: Gain probability vs. loss probability	1.12	1.39	-0.27
Calmar ratio: Return relative to maximum drawdown	0.64	3.04	-2.40
Martin ratio: Return relative to average drawdown	2.16	12.43	-10.27
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSET vs. LCAP - Sharpe Ratio Comparison

The current PSET Sharpe Ratio is 0.65, which is lower than the LCAP Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of PSET and LCAP, 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

	PSET	LCAP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.65	2.21	-1.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.71	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	1.62	-0.91

Drawdowns

PSET vs. LCAP - Drawdown Comparison

The maximum PSET drawdown since its inception was -34.74%, which is greater than LCAP's maximum drawdown of -11.31%. Use the drawdown chart below to compare losses from any high point for PSET and LCAP.

Drawdown Indicators

	PSET	LCAP	Difference
Max Drawdown Largest peak-to-trough decline	-34.74%	-11.31%	-23.43%
Max Drawdown (1Y) Largest decline over 1 year	-12.94%	-9.32%	-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	-1.81%	-0.24%	-1.57%
Average Drawdown Average peak-to-trough decline	-4.59%	-1.61%	-2.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.82%	2.27%	+1.55%

Volatility

PSET vs. LCAP - Volatility Comparison

Principal Quality ETF (PSET) and Principal Capital Appreciation Select ETF (LCAP) have volatilities of 3.06% and 3.00%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSET	LCAP	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	3.00%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	9.70%	10.18%	-0.48%
Volatility (1Y) Calculated over the trailing 1-year period	12.66%	12.83%	-0.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.51%	16.86%	+0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.05%	16.86%	+1.19%

PSET vs. LCAP - Expense Ratio Comparison

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

Dividends

PSET vs. LCAP - Dividend Comparison

PSET's dividend yield for the trailing twelve months is around 0.62%, more than LCAP's 0.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
LCAP Principal Capital Appreciation Select ETF	0.09%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PSET Principal Quality ETF	0.62%	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 PSET and LCAP in my portfolio?

PSET and LCAP 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, PSET or LCAP?

PSET has higher volatility (3.06%) compared to LCAP (3.00%). In terms of maximum drawdown, PSET dropped -34.74% vs LCAP's -11.31%.

Which ETF is better, PSET or LCAP?

On 1-year performance, LCAP leads with 28.18% vs 8.25% for PSET. On fees, PSET is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSET or LCAP?

Over the 1-year period, LCAP has performed better with a 28.18% return vs 8.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSET or LCAP?

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

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

PSET has the higher dividend yield at 0.62%, compared with 0.09% for LCAP.

What is the main difference between PSET and LCAP?

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

Which has better risk-adjusted returns?

LCAP currently has the higher Sharpe Ratio (2.21 vs 0.65), 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.