LCAP vs VYM
Principal Capital Appreciation Select ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | LCAP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $1.8B | $79.0B | |
| Dividend Yield | 0.09% | 2.86% | |
| Holdings | 58 | 568 | |
| YTD Return | +14.45% | +15.80% | |
| 1Y Return | +24.60% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 10.8% | 14.6% | |
| Max Drawdown | -11.3% | -58.8% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 25, 2025 | Nov 10, 2006 |
LCAP vs VYM Performance
Principal Capital Appreciation Select ETF (LCAP) is a ETF from Principal Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LCAP returned +24.60% while VYM returned +26.12%. Year to date, LCAP is up 14.45% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LCAP charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, LCAP currently yields 0.09% against 2.86% for VYM.
Holdings Overlap
LCAP and VYM share 14 holdings out of 598 unique holdings combined, representing a 14.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCAP or VYM?
LCAP has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, LCAP or VYM?
Over the past year LCAP returned +24.60% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), LCAP annualized +25.19% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, LCAP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.8% for LCAP. Worst drawdown: LCAP -11.3% vs VYM -58.8%.
Should I hold both LCAP and VYM?
LCAP and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCAP and VYM?
LCAP and VYM share 14 common holdings with a 14.3% weight overlap. Combined, they hold 598 unique securities.
Which pays a higher dividend, LCAP or VYM?
LCAP yields 0.09% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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