LCF vs SPY

LCF vs SPY

Which is better, LCF or SPY?

Nearly the same fund. SPY costs less.

SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.97. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 55.0%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: SPY

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

MetricLCFSPY
Expense Ratio0.56%0.09%Best
AUM$69M$804.7B
Dividend Yield0.50%0.98%
Holdings46505
YTD Return+8.82%+12.09%Best
1Y Return+11.08%+16.29%Best
3Y Return (annualized)+17.60%+21.20%Best
5Y Return (annualized)-+13.37%
Volatility (annualized)14.0%Best14.3%
Max Drawdown-18.3%Best-18.8%
$10,000 over 4.1 years$18,183$19,378Best
Top 10 Weight55.0%37.8%Best
Fund FamilyTouchstone InvestmentsState Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionJul 27, 2022Jan 22, 1993

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 SPY 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 SPY Performance

Touchstone US Large Cap Focused ETF (LCF) is an ETF from Touchstone Investments and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year LCF returned +11.08% while SPY returned +16.29%. Year to date, LCF is up 8.82% versus a gain of 12.09% for SPY.

Over three years, LCF compounded at +17.60% per year against +21.20% for SPY. Across the full 4-year window we track, SPY has the edge at +17.51% annualized vs +15.70%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 14.3% 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 -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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 0.50% against 0.98% for SPY.

Holdings Overlap

LCF already in SPY91.2%
SPY already in LCF42.9%

91.2% of LCF's money is in holdings SPY also owns. 42.9% of SPY's money is in holdings LCF also owns.

Most of LCF is already inside SPY. Owning both mostly buys the same companies twice.

39 positions in common, counted across the 45 positions we hold weights for in LCF and 504 in SPY, against full books of 46 and 505.

What only one of them owns

Measured across the 45 and 504 positions we hold weights for.

SPY holds 458 positions LCF does not, 56.5% of the fund.

Largest: GOOGL 2.99%, MU 1.60%, TSLA 1.52%, JPM 1.45%, LLY 1.40%

Top Shared Holdings

StockWeight in LCFWeight in SPYDifference
NVDANvidia Corp7.71%8.01%0.30%
AAPLApple, Inc7.92%7.26%0.66%
MSFTMicrosoft Corp8.99%5.66%3.33%
GOOGAlphabet Inc8.32%2.39%5.93%
AMZNAmazon.Com Inc5.72%3.79%1.93%
METAMeta Platforms Inc5.39%1.93%3.46%
AVGOBroadcom Inc2.21%2.66%0.45%
BACBank of America Corp.: Financials3.34%0.62%2.72%
XOMExxon Mobil Corp.2.47%1.04%1.43%
VVisa Inc Class A2.26%0.94%1.32%

91.2% of LCF is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

LCFSPY

Free for up to 10 holdings. No account needed.

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, by $47 a year on a $10,000 investment.

Which performed better, LCF or SPY?

Over the past year LCF returned +11.08% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), LCF annualized +15.70% vs +17.51% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LCF or SPY?

SPY has been the more volatile fund at 14.3% annualized versus 14.0% for LCF. Worst drawdown: LCF -18.3% vs SPY -18.8%.

Should I hold both LCF and SPY?

LCF and SPY have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between LCF and SPY?

91.2% of LCF's money is in holdings SPY also owns. 42.9% of SPY's is in holdings LCF also owns. They hold 39 positions in common, counted across the 45 positions we hold weights for in LCF and 504 in SPY.

Which pays a higher dividend, LCF or SPY?

LCF yields 0.50% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than LCF?

SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.97. SPY is less concentrated, with 37.8% 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.