LCF vs SPY
Touchstone US Large Cap Focused ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | LCF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.09% | |
| AUM | $66M | $789.1B | |
| Dividend Yield | 0.54% | 1.01% | |
| Holdings | 47 | 505 | |
| YTD Return | +10.93% | +13.75% | |
| 1Y Return | +18.02% | +22.91% | |
| 3Y Return (annualized) | +18.13% | +21.67% | |
| 5Y Return (annualized) | - | +13.32% | |
| Volatility (annualized) | 14.1% | 15.3% | |
| Max Drawdown | -18.3% | -56.5% | |
| Fund Family | Touchstone Investments | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 27, 2022 | Jan 22, 1993 |
LCF vs SPY Performance
Touchstone US Large Cap Focused ETF (LCF) is a ETF from Touchstone Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LCF returned +18.02% while SPY returned +22.91%. Year to date, LCF is up 10.93% versus a gain of 13.75% for SPY.
Over three years, LCF compounded at +18.13% per year against +21.67% for SPY. Across the full 4-year window we track, LCF has the edge at +16.70% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.5% for SPY. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
LCF charges 0.56% per year while SPY charges 0.09%. On a $10,000 position that is $56 vs $9 annually, a gap of $47 per year that compounds over a long holding period. On income, LCF currently yields 0.54% against 1.01% for SPY.
Holdings Overlap
LCF and SPY share 39 holdings out of 509 unique holdings combined, representing a 40.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCF or SPY?
LCF has an expense ratio of 0.56% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, LCF or SPY?
Over the past year LCF returned +18.02% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), LCF annualized +16.70% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, LCF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.1% for LCF. Worst drawdown: LCF -18.3% vs SPY -56.5%.
Should I hold both LCF and SPY?
LCF and SPY have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between LCF and SPY?
LCF and SPY share 39 common holdings with a 40.5% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, LCF or SPY?
LCF yields 0.54% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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