USMC vs. CAOS

Last updated Aug 2, 2026

USMC (Principal U.S. Mega-Cap ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index, while CAOS is a Options Trading fund actively managed by Alpha Architect. USMC is passively managed, while CAOS is actively managed. Over the past 3 years, USMC returned 19.26%/yr vs 3.48%/yr for CAOS. Their 0.09 correlation means their historical movements had little consistent relationship. USMC charges 0.12%/yr vs 0.63%/yr for CAOS.

Performance

USMC vs. CAOS - Performance Comparison

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

Returns By Period

In the year-to-date period, USMC achieves a 8.72% return, which is significantly higher than CAOS's 0.76% return.

USMC

• 1D: 0.44%
• 1M: 0.13%
• 6M: 9.88%
• YTD: 8.72%
• 1Y: 20.36%
• 3Y*: 19.26%
• 5Y*: 14.11%
• 10Y*: —
• ALL TIME*: 14.93%

CAOS

• 1D: -0.06%
• 1M: -0.01%
• 6M: 0.16%
• YTD: 0.76%
• 1Y: 1.73%
• 3Y*: 3.48%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.70%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
CAOS Alpha Architect Tail Risk ETF	$6.81M	$5.39M	$5.09M
USMC Principal U.S. Mega-Cap ETF	$7.10M	$6.59M	$6.39M

USMC vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
USMC Principal U.S. Mega-Cap ETF	8.72%	14.99%	29.82%	23.54%
CAOS Alpha Architect Tail Risk ETF	0.76%	2.55%	5.33%	7.43%

Correlation

The correlation between USMC and CAOS is -0.33, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.33
Correlation (3Y) Balances recent behavior with more history.	-0.04
Correlation (All Time) Calculated using the full available price history since Mar 6, 2023	0.09

The correlation between USMC and CAOS shifts across timeframes, from -0.33 (1 year) to 0.09 (all time), reflecting how their relationship changes across market environments.

Return for Risk

USMC vs. CAOS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

USMC

USMC Risk / Return Rank: 59
USMC Sharpe Ratio Rank: 64
USMC Sortino Ratio Rank: 64
USMC Omega Ratio Rank: 61
USMC Calmar Ratio Rank: 51
USMC Martin Ratio Rank: 57

CAOS

CAOS Risk / Return Rank: 56
CAOS Sharpe Ratio Rank: 49
CAOS Sortino Ratio Rank: 55
CAOS Omega Ratio Rank: 54
CAOS Calmar Ratio Rank: 72
CAOS Martin Ratio Rank: 48

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

USMC vs. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal U.S. Mega-Cap ETF (USMC) and Alpha Architect Tail Risk ETF (CAOS). 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.

	USMC	CAOS	Difference
Sharpe ratio: Return per unit of total volatility	1.49	1.19	+0.29
Sortino ratio: Return per unit of downside risk	2.12	1.89	+0.23
Omega ratio: Gain probability vs. loss probability	1.26	1.24	+0.02
Calmar ratio: Return relative to maximum drawdown	1.82	2.47	-0.65
Martin ratio: Return relative to average drawdown	6.78	5.45	+1.33

USMC vs. CAOS - Sharpe Ratio Comparison

The current USMC Sharpe Ratio is 1.49, which is comparable to the CAOS Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of USMC and CAOS, 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

USMC vs. CAOS - Drawdown Comparison

The maximum USMC drawdown since its inception was -29.97%, which is greater than CAOS's maximum drawdown of -3.89%. Use the drawdown chart below to compare losses from any high point for USMC and CAOS.

Drawdown Indicators

	USMC	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-29.97%	-3.89%	-26.08%
Max Drawdown (1Y) Largest decline over 1 year	-10.30%	-0.76%	-9.54%
Max Drawdown (3Y) Largest decline over 3 years	-19.12%	-3.60%	-15.52%
Max Drawdown (5Y) Largest decline over 5 years	-24.09%	—	—
Current Drawdown Current decline from peak	-1.03%	-1.13%	+0.10%
Average Drawdown Average peak-to-trough decline	-4.35%	-0.92%	-3.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	0.34%	+2.41%

Volatility

USMC vs. CAOS - Volatility Comparison

Principal U.S. Mega-Cap ETF (USMC) has a higher volatility of 3.47% compared to Alpha Architect Tail Risk ETF (CAOS) at 0.51%. This indicates that USMC's price experiences larger fluctuations and is considered to be riskier than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USMC	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.47%	0.51%	+2.96%
Volatility (6M) Calculated over the trailing 6-month period	9.64%	1.07%	+8.57%
Volatility (1Y) Calculated over the trailing 1-year period	12.60%	1.57%	+11.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	4.18%	+12.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.18%	4.18%	+14.00%

USMC vs. CAOS - Expense Ratio Comparison

USMC has a 0.12% expense ratio, which is lower than CAOS's 0.63% expense ratio.

Dividends

USMC vs. CAOS - Dividend Comparison

USMC's dividend yield for the trailing twelve months is around 0.76%, while CAOS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
CAOS Alpha Architect Tail Risk ETF	0.00%	0.00%	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 USMC and CAOS in my portfolio?

USMC and CAOS have a correlation of -0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USMC or CAOS?

USMC has higher volatility (3.47%) compared to CAOS (0.51%). In terms of maximum drawdown, USMC dropped -29.97% vs CAOS's -3.89%.

Which ETF is better, USMC or CAOS?

On 3-year performance, USMC leads with 19.26% vs 3.48% for CAOS. On fees, USMC is cheaper at 0.12% per year. On volatility, CAOS has been the lower-risk option at 0.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMC or CAOS?

Over the 3-year period, USMC has performed better with a 19.26% return vs 3.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMC or CAOS?

USMC is cheaper with a 0.12% expense ratio, compared with 0.63% for CAOS.

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

USMC has the higher dividend yield at 0.76%, compared with 0.00% for CAOS.

What is the main difference between USMC and CAOS?

USMC is categorized as Large Cap Growth Equities, while CAOS is Options Trading. They also come from different issuers: Principal and Alpha Architect. Their fees differ too: 0.12% for USMC and 0.63% for CAOS.

Which has better risk-adjusted returns?

USMC currently has the higher Sharpe Ratio (1.49 vs 1.19), 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.