At a glance
LCAP charges 0.29% a year. It has $1.83B in assets; it paid 0.09% of its price in distributions over the past 12 months, annual. Over the past year it returned +13.1% with distributions reinvested (S&P 500: +11.5%). Its ten largest positions make up 42.0% of the fund, out of 54 in all.
The short version
Principal Capital Appreciation Select ETF (LCAP) is an actively managed fund of mostly large U.S. company stocks. It held 54 stocks as of June 30, 2026, and the largest were NVIDIA, Apple and Alphabet. It does not track an index. Instead, its managers look for businesses they believe sell for less than they are worth or have lasting advantages over rivals. It charges 0.29% a year, pays almost no income, and its record goes back only to March 2025.
Price history
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LCAP +13.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LCAP price data to Oct 27, 2026 | +14.5% | +13.1% | — | — | — | +23.8% |
- Over the year to Oct 27, 2026, LCAP returned +13.1%.
- The deepest fall in its price history was 9.3% (Jan 26, 2026 to Mar 30, 2026), recovered by Apr 16, 2026.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +14.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.What's inside
As of Jun 30, 2026, the fund held 54 securities; the ten largest made up 41.98% of assets, and 2.23% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| NVIDIA Corp | 7.18% | |
| Apple Inc | 6.06% | |
| Alphabet Inc | 5.38% | |
| Microsoft Corp | 3.87% | |
| Amazon.com Inc | 3.73% | |
| Lam Research Corp | 3.52% | |
| Broadcom Inc | 3.36% | |
| Visa Inc | 3.05% | |
| GE Vernova Inc | 3.00% | |
| JPMorgan Chase & Co | 2.82% | |
| Eli Lilly & Co | 2.52% | |
| American Express Co | 2.14% | |
| TJX Cos Inc | 2.10% | |
| McKesson Corp | 2.04% | |
| Republic Services Inc | 1.99% |
By country
United States 91.93%Switzerland 2.62%Ireland 2.06%Taiwan 1.16%By asset type
Stocks 97.76%By sector
Sectors of the companies held, for the 84.4% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.52B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +10.10%, +3.58%, +0.32%.
How it works
LCAP is actively managed, which means Principal's investment team picks each stock instead of copying an index. The fund's goal is long-term growth of capital. It can buy U.S. companies of any size but leans toward large ones. Most holdings have a market capitalization (share price times shares outstanding) above $10 billion when the fund buys them.
The managers look for three things. One is a stock trading below the company's "private market value," meaning what the whole business might sell for. The others are a competitive advantage and barriers that keep rivals out. The prospectus gives no weighting formula or rebalancing schedule, so position sizes reflect the managers' judgment. As of June 30, 2026, the fund held 54 stocks. The 10 largest made up about 42% of assets, led by NVIDIA (7.2%), Apple (6.1%) and Alphabet (5.4%). Technology was the largest sector at about 30%. Stocks were about 98% of the portfolio and cash about 2%, with no derivatives. Portfolio turnover, the share of holdings replaced over a year, was 43.4%.
Subject to shareholder approval, on or about December 1, 2026, the fund will be treated as non-diversified. That would let it put more money into individual companies, so one stock's slump could move the share price more. Like any ETF, LCAP trades on an exchange at a market price that can differ slightly from the value of its holdings.
What it really costs
- LCAP charges 0.29% a year.
- Using the prospectus's standard example, $10,000 invested would cost about $30 in the first year and $368 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LCAP | $30 | $93 | $163 | $368 |
In a retirement portfolio
LCAP is a broad portfolio of large U.S. growth-oriented stocks that has moved roughly in line with the market, though its record is short.
LCAP could serve as a stock-growth holding, but it has not been tested by a severe market. It launched in March 2025, so it has no record from the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market, and no full calendar year of returns. Its deepest drop was 9.3%, from January 26 to March 30, 2026. It recovered by April 16, 2026. Its beta was 0.96 over the year to October 27, 2026, meaning it moved about as much as the market. Someone who has to sell shares in a downturn may face losses similar to the stock market's. The yield was 0.09% as of October 27, 2026, paid once a year, so spending money would come from selling shares. In the SEC's $10,000 example, costs total $30 after one year and $368 after ten. Past results don't predict the future, and a plan should look at the whole portfolio.
Who it may suit — and who should look elsewhere
May suit
- Investors who want managers choosing about 54 mostly large U.S. stocks, led by NVIDIA, Apple and Alphabet as of June 30, 2026.
- Long-term, growth-focused holders who don't need income from this fund. It yielded 0.09% as of October 27, 2026, paid once a year.
- People willing to pay 0.29% a year for stock picking based on private market value and competitive advantage, accepting that active managers can trail the market.
Look elsewhere if
- Retirees who want regular income, because LCAP makes one small payment a year and has no stated income goal.
- Investors who want a long track record. The fund launched in March 2025 and has not been through a full bear market.
- Those who prefer index tracking or wide diversification. It holds 54 stocks, about 30% in technology, and may become non-diversified.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Is LCAP good for retirement?
LCAP may suit a retirement portfolio as a long-term growth holding, but it's new and pays almost no income. It launched in March 2025, so it hasn't been through a major bear market. Its deepest drop was 9.3% in early 2026, and it recovered by April 16, 2026. The yield was 0.09% as of October 27, 2026, so retirees needing cash would sell shares rather than live on its payouts.
Does LCAP pay dividends?
Yes, but very little. LCAP pays once a year. Its trailing 12-month yield was 0.09% as of October 27, 2026, about $0.03 per share. The fund aims for long-term growth of capital, not income. Its largest holdings, such as NVIDIA, Apple and Alphabet, pay small dividends compared with their share prices. Investors who want regular cash flow would generally need to sell shares or look at income-focused funds.
What is LCAP's expense ratio?
LCAP's expense ratio is 0.29% a year, according to the prospectus filed October 27, 2026. All of it is the management fee, and there's no fee waiver. In the SEC's standard example, $10,000 invested with a 5% yearly return would cost about $30 after one year, $93 after three, $163 after five and $368 after ten. Broad large-company index funds are worth comparing on cost.
Is LCAP an index fund?
No. LCAP is actively managed by Principal and does not track an index. Its managers pick U.S. stocks, mostly companies worth over $10 billion. They favor businesses they believe trade below their private market value or have competitive advantages and barriers to entry. The prospectus warns that their judgments may not produce the intended results. As of June 30, 2026, the fund held 54 stocks.
How has LCAP performed since launch?
Based on its share price, LCAP gained 23.8% from its March 2025 launch through October 27, 2026. It rose 13.1% over the year to that date and 14.5% in 2026 through October 27. Its sharpest decline was 9.3%, from January 26 to March 30, 2026. With about 1.5 years of history, it has no official multi-year average returns in its prospectus yet.