AFLG vs USMC
First Trust Active Factor Large Cap ETF vs Principal U.S. Mega-Cap ETF
Which is better, AFLG or USMC?
Each has led over a different period.
USMC has a lower expense ratio. AFLG led over 1Y and 3Y, USMC over 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. AFLG is less concentrated, with 33.0% of the fund in its ten largest positions against 55.3%.
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 | AFLG | USMC |
|---|---|---|
| Expense Ratio | 0.55% | 0.12%Best |
| AUM | $803M | $5.2B |
| Dividend Yield | 0.71% | 0.74% |
| Holdings | 435 | 58 |
| YTD Return | +14.82%Best | +13.98% |
| 1Y Return | +17.70%Best | +14.91% |
| 3Y Return (annualized) | +22.47%Best | +22.22% |
| 5Y Return (annualized) | +12.74% | +14.81%Best |
| Volatility (annualized) | 16.6% | 16.1%Best |
| Max Drawdown | -35.8% | -30.0%Best |
| $10,000 over 5 years | $18,213 | $19,948Best |
| Top 10 Weight | 33.0%Best | 55.3% |
| Fund Family | First Trust Portfolios (US) | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Dec 4, 2019 | Oct 11, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Dec 4, 2019 to Oct 14, 2026 (6.9 years).
AFLG vs USMC 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 6.9 years both funds cover.
AFLG vs USMC Performance
First Trust Active Factor Large Cap ETF (AFLG) is an ETF from First Trust Portfolios (US) and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year AFLG returned +17.70% while USMC returned +14.91%. Year to date, AFLG is up 14.82% versus a gain of 13.98% for USMC.
Over three years, AFLG compounded at +22.47% per year against +22.22% for USMC; over five years the annualized figures are +12.74% and +14.81% respectively. Across the full 7-year window we track, USMC has the edge at +15.75% annualized vs +13.51%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFLG has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 16.1% for USMC. 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 -35.8% for AFLG and -30.0% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AFLG charges 0.55% per year while USMC charges 0.12%. On a $10,000 position that is $55 vs $12 annually, a gap of $43 per year that compounds over a long holding period. On income, AFLG currently yields 0.71% against 0.74% for USMC.
Holdings Overlap
35.1% of AFLG's money is in holdings USMC also owns. 72.5% of USMC's money is in holdings AFLG also owns.
Most of USMC is already inside AFLG. Owning both mostly buys the same companies twice.
17 positions in common, counted across the 218 positions we hold weights for in AFLG and 27 in USMC, against full books of 435 and 58.
What only one of them owns
Our book lists 10 positions for USMC that do not appear in our book for AFLG (27.5% of the fund), and 197 for AFLG that do not appear in USMC (63.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in AFLG | Weight in USMC | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.85% | 7.99% | 0.14% |
| AAPLApple, Inc | 6.58% | 7.40% | 0.82% |
| GOOGLAlphabet Inc Cap Stk Cl A | 5.62% | 5.33% | 0.29% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.00% | 5.55% | 1.55% |
| MUMicron Technology, Inc. | 0.36% | 7.18% | 6.82% |
| AVGOBroadcom Inc | 2.50% | 4.44% | 1.94% |
| AMZNAmazon.Com Inc | 2.37% | 3.77% | 1.40% |
| VVisa Inc-class A Shares | 1.03% | 4.54% | 3.51% |
| MAMastercard Inc | 0.56% | 4.32% | 3.76% |
| METAMeta Platform Inc | 0.79% | 3.92% | 3.13% |
72.5% of USMC is already inside AFLG.
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, AFLG or USMC?
AFLG has an expense ratio of 0.55% while USMC charges 0.12%. USMC is the cheaper option, by $43 a year on a $10,000 investment.
Which performed better, AFLG or USMC?
Over the past year AFLG returned +17.70% vs +14.91% for USMC, so AFLG leads on 1-year performance. Over the longest common window we track (7 years), AFLG annualized +13.51% vs +15.75% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFLG or USMC?
AFLG has been the more volatile fund at 16.6% annualized versus 16.1% for USMC. Worst drawdown: AFLG -35.8% vs USMC -30.0%.
Should I hold both AFLG and USMC?
AFLG and USMC have a monthly-return correlation of 0.94, 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 AFLG and USMC?
72.5% of USMC's money is in holdings AFLG also owns. 72.5% of USMC's is in holdings AFLG also owns. They hold 17 positions in common, counted across the 218 positions we hold weights for in AFLG and 27 in USMC.
Which pays a higher dividend, AFLG or USMC?
AFLG yields 0.71% while USMC yields 0.74%, so USMC currently pays the higher dividend yield.
Is USMC better than AFLG?
USMC has a lower expense ratio. AFLG led over 1Y and 3Y, USMC over 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. AFLG is less concentrated, with 33.0% of the fund in its ten largest positions against 55.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.