LCF vs QQQ
Touchstone US Large Cap Focused 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 | LCF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.18% | |
| AUM | $66M | $455.8B | |
| Dividend Yield | 0.54% | 0.41% | |
| Holdings | 47 | 108 | |
| YTD Return | +9.90% | +18.31% | |
| 1Y Return | +15.43% | +25.37% | |
| 3Y Return (annualized) | +17.56% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 14.1% | 30.6% | |
| Max Drawdown | -18.3% | -83.0% | |
| Fund Family | Touchstone Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 27, 2022 | Mar 10, 1999 |
LCF vs QQQ Performance
Touchstone US Large Cap Focused ETF (LCF) is a ETF from Touchstone Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LCF returned +15.43% while QQQ returned +25.37%. Year to date, LCF is up 9.90% versus a gain of 18.31% for QQQ.
Over three years, LCF compounded at +17.56% per year against +25.79% for QQQ. Across the full 4-year window we track, LCF has the edge at +16.40% annualized vs +13.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 14.1% 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 -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 0.84. 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 0.54% against 0.41% for QQQ.
Holdings Overlap
LCF and QQQ share 14 holdings out of 134 unique holdings combined, representing a 37.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $38 per year of difference.
Which performed better, LCF or QQQ?
Over the past year LCF returned +15.43% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), LCF annualized +16.40% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, LCF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.1% for LCF. Worst drawdown: LCF -18.3% vs QQQ -83.0%.
Should I hold both LCF and QQQ?
LCF and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCF and QQQ?
LCF and QQQ share 14 common holdings with a 37.0% weight overlap. Combined, they hold 134 unique securities.
Which pays a higher dividend, LCF or QQQ?
LCF yields 0.54% while QQQ yields 0.41%, so LCF currently pays the higher dividend yield.
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