LCF vs QQQ
Touchstone US Large Cap Focused ETF vs Invesco QQQ Trust, Series 1
Which is better, LCF or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 55.0%.
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 | LCF | QQQ |
|---|---|---|
| Expense Ratio | 0.56% | 0.18%Best |
| AUM | $69M | $483.5B |
| Dividend Yield | 0.50% | 0.44% |
| Holdings | 46 | 107 |
| YTD Return | +8.82% | +17.95%Best |
| 1Y Return | +11.08% | +21.77%Best |
| 3Y Return (annualized) | +17.60% | +25.63%Best |
| 5Y Return (annualized) | - | +15.24% |
| Volatility (annualized) | 14.0%Best | 19.0% |
| Max Drawdown | -18.3%Best | -22.8% |
| $10,000 over 4.1 years | $18,183 | $23,243Best |
| Top 10 Weight | 55.0% | 46.5%Best |
| Fund Family | Touchstone Investments | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jul 27, 2022 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 4.1 years row, are measured over the window both funds cover: Jul 29, 2022 to Sep 18, 2026 (4.1 years).
LCF 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 4.1 years both funds cover.
LCF vs QQQ Performance
Touchstone US Large Cap Focused ETF (LCF) is an ETF from Touchstone Investments and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year LCF returned +11.08% while QQQ returned +21.77%. Year to date, LCF is up 8.82% versus a gain of 17.95% for QQQ.
Over three years, LCF compounded at +17.60% per year against +25.63% for QQQ. Across the full 4-year window we track, QQQ has the edge at +22.84% annualized vs +15.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 14.0% for LCF. 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 -18.3% for LCF and -22.8% 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LCF charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, LCF currently yields 0.50% against 0.44% for QQQ.
Holdings Overlap
55.1% of LCF's money is in holdings QQQ also owns. 40.8% of QQQ's money is in holdings LCF also owns.
The two portfolios partly overlap.
14 positions in common, counted across the 45 positions we hold weights for in LCF and 102 in QQQ, against full books of 46 and 107.
What only one of them owns
Measured across the 45 and 102 positions we hold weights for.
QQQ holds 82 positions LCF does not, 56.8% of the fund.
Largest: MU 4.43%, AMD 3.45%, GOOGL 3.36%, TSLA 2.56%, WMT 2.41%
Top Shared Holdings
| Stock | Weight in LCF | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.71% | 8.44% | 0.73% |
| AAPLApple, Inc | 7.92% | 7.27% | 0.65% |
| MSFTMicrosoft Corp | 8.99% | 5.76% | 3.23% |
| GOOGAlphabet Inc | 8.32% | 3.13% | 5.19% |
| AMZNAmazon.Com Inc | 5.72% | 4.67% | 1.05% |
| METAMeta Platforms Inc | 5.39% | 2.78% | 2.61% |
| AVGOBroadcom Inc | 2.21% | 3.16% | 0.95% |
| AMATApplied Materials, Inc. | 2.19% | 1.86% | 0.33% |
| ABNBAirbnb Inc | 2.04% | 0.28% | 1.76% |
| TXNTexas Instrument Inc | 1.18% | 1.12% | 0.06% |
55.1% of LCF is already inside QQQ.
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, LCF or QQQ?
LCF has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option, by $38 a year on a $10,000 investment.
Which performed better, LCF or QQQ?
Over the past year LCF returned +11.08% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), LCF annualized +15.70% vs +22.84% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LCF or QQQ?
QQQ has been the more volatile fund at 19.0% annualized versus 14.0% for LCF. Worst drawdown: LCF -18.3% vs QQQ -22.8%.
Should I hold both LCF and QQQ?
LCF and QQQ have a monthly-return correlation of 0.84, 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 LCF and QQQ?
55.1% of LCF's money is in holdings QQQ also owns. 40.8% of QQQ's is in holdings LCF also owns. They hold 14 positions in common, counted across the 45 positions we hold weights for in LCF and 102 in QQQ.
Which pays a higher dividend, LCF or QQQ?
LCF yields 0.50% while QQQ yields 0.44%, so LCF currently pays the higher dividend yield.
Is QQQ better than LCF?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 55.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.