LCAP vs QQQ
Principal Capital Appreciation Select ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | LCAP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $1.8B | $455.8B | |
| Dividend Yield | 0.09% | 0.41% | |
| Holdings | 58 | 108 | |
| YTD Return | +14.31% | +17.46% | |
| 1Y Return | +23.82% | +26.02% | |
| 3Y Return (annualized) | - | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 10.8% | 30.6% | |
| Max Drawdown | -11.3% | -83.0% | |
| Fund Family | Principal Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 25, 2025 | Mar 10, 1999 |
LCAP vs QQQ Performance
Principal Capital Appreciation Select ETF (LCAP) is a ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LCAP returned +23.82% while QQQ returned +26.02%. Year to date, LCAP is up 14.31% versus a gain of 17.46% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 10.8% for LCAP. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -11.3% for LCAP and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LCAP charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, LCAP currently yields 0.09% against 0.41% for QQQ.
Holdings Overlap
LCAP and QQQ share 18 holdings out of 139 unique holdings combined, representing a 41.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCAP or QQQ?
LCAP has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, LCAP or QQQ?
Over the past year LCAP returned +23.82% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), LCAP annualized +24.85% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, LCAP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.8% for LCAP. Worst drawdown: LCAP -11.3% vs QQQ -83.0%.
Should I hold both LCAP and QQQ?
LCAP and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCAP and QQQ?
LCAP and QQQ share 18 common holdings with a 41.5% weight overlap. Combined, they hold 139 unique securities.
Which pays a higher dividend, LCAP or QQQ?
LCAP yields 0.09% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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