USMC vs. EQTY

Last updated Jun 25, 2026

USMC (Principal U.S. Mega-Cap ETF) and EQTY (Kovitz Core Equity ETF) are both exchange-traded funds - USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index, while EQTY is a Large Cap Blend Equities fund tracking the NONE. Both are passively managed. Over the past 3 years, USMC returned 20.32%/yr vs 15.23%/yr for EQTY. Their correlation of 0.81 suggests significant overlap in exposure. USMC charges 0.12%/yr vs 0.99%/yr for EQTY.

Performance

USMC vs. EQTY - Performance Comparison

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

Returns By Period

In the year-to-date period, USMC achieves a 6.18% return, which is significantly higher than EQTY's 1.58% return.

USMC

• 1D: -0.23%
• 1M: -0.55%
• YTD: 6.18%
• 6M: 4.64%
• 1Y: 18.69%
• 3Y*: 20.32%
• 5Y*: 14.41%
• 10Y*: —

EQTY

• 1D: 0.85%
• 1M: -0.40%
• YTD: 1.58%
• 6M: 0.79%
• 1Y: 11.16%
• 3Y*: 15.23%
• 5Y*: —
• 10Y*: —

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

USMC vs. EQTY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
USMC Principal U.S. Mega-Cap ETF	6.18%	14.99%	29.82%	31.57%	-2.74%
EQTY Kovitz Core Equity ETF	1.58%	13.63%	19.89%	26.97%	-3.12%

Correlation

The correlation between USMC and EQTY is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (All Time) Calculated using the full available price history since Dec 12, 2022	0.81

The correlation between USMC and EQTY shifts across timeframes, from 0.70 (1 year) to 0.81 (all time), reflecting how their relationship changes across market environments.

USMC vs. EQTY - Sectors Allocation Comparison

Sectors	USMC	EQTY
Technology	33.3%	22.3%
Financial Services	18.2%	22.0%
Communication Services	13.7%	10.9%
Consumer Defensive	8.5%	4.0%
Consumer Cyclical	8.3%	10.0%
Healthcare	8.1%	14.7%
Industrials	5.6%	14.6%
Energy	4.3%	1.5%
Basic Materials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

USMC vs. EQTY — Risk / Return Rank

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

USMC

USMC Risk / Return Rank: 46
USMC Sharpe Ratio Rank: 49
USMC Sortino Ratio Rank: 49
USMC Omega Ratio Rank: 46
USMC Calmar Ratio Rank: 40
USMC Martin Ratio Rank: 45

EQTY

EQTY Risk / Return Rank: 25
EQTY Sharpe Ratio Rank: 26
EQTY Sortino Ratio Rank: 25
EQTY Omega Ratio Rank: 24
EQTY Calmar Ratio Rank: 22
EQTY Martin Ratio Rank: 28

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.

USMC vs. EQTY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal U.S. Mega-Cap ETF (USMC) and Kovitz Core Equity ETF (EQTY). 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	EQTY	Difference
Sharpe ratio: Return per unit of total volatility	1.53	0.86	+0.67
Sortino ratio: Return per unit of downside risk	2.19	1.28	+0.90
Omega ratio: Gain probability vs. loss probability	1.27	1.16	+0.11
Calmar ratio: Return relative to maximum drawdown	1.82	0.95	+0.88
Martin ratio: Return relative to average drawdown	6.86	3.47	+3.39

USMC vs. EQTY - Sharpe Ratio Comparison

The current USMC Sharpe Ratio is 1.53, which is higher than the EQTY Sharpe Ratio of 0.86. The chart below compares the historical Sharpe Ratios of USMC and EQTY, 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. EQTY - Drawdown Comparison

The maximum USMC drawdown since its inception was -29.97%, which is greater than EQTY's maximum drawdown of -17.28%. Use the drawdown chart below to compare losses from any high point for USMC and EQTY.

Drawdown Indicators

	USMC	EQTY	Difference
Max Drawdown Largest peak-to-trough decline	-29.97%	-17.28%	-12.69%
Max Drawdown (1Y) Largest decline over 1 year	-10.30%	-11.85%	+1.55%
Max Drawdown (3Y) Largest decline over 3 years	-19.12%	-17.28%	-1.84%
Max Drawdown (5Y) Largest decline over 5 years	-24.09%	—	—
Current Drawdown Current decline from peak	-2.68%	-2.54%	-0.14%
Average Drawdown Average peak-to-trough decline	-4.39%	-2.69%	-1.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.73%	3.22%	-0.49%

Volatility

USMC vs. EQTY - Volatility Comparison

Principal U.S. Mega-Cap ETF (USMC) and Kovitz Core Equity ETF (EQTY) have volatilities of 4.43% and 4.25%, 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

	USMC	EQTY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.43%	4.25%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	9.40%	10.04%	-0.64%
Volatility (1Y) Calculated over the trailing 1-year period	12.29%	13.11%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.43%	14.98%	+1.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.24%	14.98%	+3.26%

USMC vs. EQTY - Expense Ratio Comparison

USMC has a 0.12% expense ratio, which is lower than EQTY's 0.99% expense ratio.

Dividends

USMC vs. EQTY - Dividend Comparison

USMC's dividend yield for the trailing twelve months is around 0.76%, more than EQTY's 0.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
EQTY Kovitz Core Equity ETF	0.02%	0.02%	0.33%	0.26%	0.08%	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 EQTY in my portfolio?

USMC and EQTY have a correlation of 0.70, 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 EQTY?

USMC has higher volatility (4.43%) compared to EQTY (4.25%). In terms of maximum drawdown, USMC dropped -29.97% vs EQTY's -17.28%.

Which ETF is better, USMC or EQTY?

On 3-year performance, USMC leads with 20.32% vs 15.23% for EQTY. On fees, USMC is cheaper at 0.12% per year. On volatility, EQTY has been the lower-risk option at 4.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMC or EQTY?

Over the 3-year period, USMC has performed better with a 20.32% return vs 15.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMC or EQTY?

USMC is cheaper with a 0.12% expense ratio, compared with 0.99% for EQTY.

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

USMC has the higher dividend yield at 0.76%, compared with 0.02% for EQTY.

What is the main difference between USMC and EQTY?

USMC is categorized as Large Cap Growth Equities, while EQTY is Large Cap Blend Equities. USMC tracks Nasdaq US Mega Cap Select Leaders Index, while EQTY tracks NONE. They also come from different issuers: Principal and Kovitz. Their fees differ too: 0.12% for USMC and 0.99% for EQTY.

Which has better risk-adjusted returns?

USMC currently has the higher Sharpe Ratio (1.53 vs 0.86), 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.