LCAP vs QQQ
Principal Capital Appreciation Select ETF vs Invesco QQQ Trust, Series 1
Which is better, LCAP or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. LCAP is less concentrated, with 42.3% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | LCAP | QQQ |
|---|---|---|
| Expense Ratio | 0.29% | 0.18%Best |
| AUM | $1.9B | $483.5B |
| Dividend Yield | 0.09% | 0.44% |
| Holdings | 56 | 107 |
| YTD Return | +11.47% | +15.86%Best |
| 1Y Return | +17.03% | +22.63%Best |
| 3Y Return (annualized) | - | +24.15% |
| 5Y Return (annualized) | - | +14.16% |
| Volatility (annualized) | 10.8%Best | 19.3% |
| Max Drawdown | -11.3%Best | -14.1% |
| $10,000 over 1.5 years | $13,343 | $14,877Best |
| Top 10 Weight | 42.3%Best | 46.5% |
| Fund Family | Principal Funds | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Mar 25, 2025 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.5 years row, are measured over the window both funds cover: Mar 26, 2025 to Sep 10, 2026 (1.5 years).
LCAP vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.5 years both funds cover.
LCAP vs QQQ Performance
Principal Capital Appreciation Select ETF (LCAP) is an ETF from Principal Funds and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year LCAP returned +17.03% while QQQ returned +22.63%. Year to date, LCAP is up 11.47% versus a gain of 15.86% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -14.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.44% for QQQ.
Holdings Overlap
47.3% of LCAP's money is in holdings QQQ also owns. 52.9% of QQQ's money is in holdings LCAP also owns.
The two portfolios partly overlap.
17 positions in common, counted across the 54 positions we hold weights for in LCAP and 102 in QQQ, against full books of 56 and 107.
What only one of them owns
Our book lists 78 positions for QQQ that do not appear in our book for LCAP (44.1% of the fund), and 34 for LCAP that do not appear in QQQ (49.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in LCAP | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.87% | 8.44% | 0.57% |
| AAPLApple, Inc | 6.09% | 7.27% | 1.18% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.87% | 5.76% | 0.89% |
| AMZNAmazon.Com Inc | 3.86% | 4.67% | 0.81% |
| GOOGLAlphabet A Usd 0.001 | 5.06% | 3.36% | 1.70% |
| AVGOBroadcom Inc | 3.41% | 3.16% | 0.25% |
| MUMicron Technology, Inc. | 1.69% | 4.43% | 2.74% |
| METAMeta Platforms, Inc. | 1.68% | 2.78% | 1.10% |
| AMDAdvanced Micro Devices Inc. | 0.98% | 3.45% | 2.47% |
| COSTCostco Wholesale Corp. | 2.41% | 1.84% | 0.57% |
52.9% of QQQ is already inside LCAP.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $11 a year on a $10,000 investment.
Which performed better, LCAP or QQQ?
Over the past year LCAP returned +17.03% vs +22.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), LCAP annualized +21.20% vs +30.32% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LCAP or QQQ?
QQQ has been the more volatile fund at 19.3% annualized versus 10.8% for LCAP. Worst drawdown: LCAP -11.3% vs QQQ -14.1%.
Should I hold both LCAP and QQQ?
LCAP and QQQ have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between LCAP and QQQ?
52.9% of QQQ's money is in holdings LCAP also owns. 52.9% of QQQ's is in holdings LCAP also owns. They hold 17 positions in common, counted across the 54 positions we hold weights for in LCAP and 102 in QQQ.
Which pays a higher dividend, LCAP or QQQ?
LCAP yields 0.09% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than LCAP?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. LCAP is less concentrated, with 42.3% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.