FEPI vs USMC

FEPI vs USMC

Which is better, FEPI or USMC?

Each has led over a different period.

USMC has a lower expense ratio. FEPI led over 3Y and the full window, USMC over 1Y. USMC is less concentrated, with 55.3% of the fund in its ten largest positions against 63.7%.

Lower Fees: USMCHigher Returns: splitLess Concentrated: USMC

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

MetricFEPIUSMC
Expense Ratio0.65%0.12%Best
AUM$746M$5.2B
Dividend Yield24.59%0.74%
Holdings6558
YTD Return+11.21%+13.98%Best
1Y Return+14.02%+14.91%Best
3Y Return (annualized)+24.36%Best+22.22%
5Y Return (annualized)-+14.81%
Volatility (annualized)16.4%12.1%Best
Max Drawdown-23.6%-19.1%Best
$10,000 over 3 years$19,117Best$18,226
Top 10 Weight63.7%55.3%Best
Fund FamilyREX SharesPrincipal Funds
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionOct 9, 2023Oct 11, 2017

Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Oct 11, 2023 to Oct 14, 2026 (3 years).

FEPI 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 3 years both funds cover.

Compare FEPI against instead:FEPI vs SPYFEPI vs QQQFEPI vs VOOFEPI vs VTIUSMC against:USMC vs VXUS

FEPI vs USMC Performance

REX FANG & Innovation Equity Premium Income ETF (FEPI) is an ETF from REX Shares and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year FEPI returned +14.02% while USMC returned +14.91%. Year to date, FEPI is up 11.21% versus a gain of 13.98% for USMC.

Over three years, FEPI compounded at +24.36% per year against +22.22% for USMC.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FEPI has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 12.1% 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 -23.6% for FEPI and -19.1% 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 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FEPI charges 0.65% per year while USMC charges 0.12%. On a $10,000 position that is $65 vs $12 annually, a gap of $53 per year that compounds over a long holding period. On income, FEPI currently yields 24.59% against 0.74% for USMC.

Holdings Overlap

FEPI already in USMC61.5%
USMC already in FEPI50.7%

61.5% of FEPI's money is in holdings USMC also owns. 50.7% of USMC's money is in holdings FEPI also owns.

The two portfolios partly overlap.

10 positions in common, counted across the 20 positions we hold weights for in FEPI and 27 in USMC, against full books of 65 and 58.

What only one of them owns

Our book lists 17 positions for USMC that do not appear in our book for FEPI (49.3% of the fund), and 10 for FEPI that do not appear in USMC (40.5%).

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

StockWeight in FEPIWeight in USMCDifference
NVDANvidia Corp9.43%7.99%1.44%
AAPLApple, Inc8.82%7.40%1.42%
MSFTMicrosoft Corp9.28%5.55%3.73%
AMZNAmazon.Com Inc8.85%3.77%5.08%
MUMicron Technology, Inc.4.70%7.18%2.48%
GOOGLAlphabet Inc4.09%5.33%1.24%
AVGOBroadcom Inc4.07%4.44%0.37%
METAMeta Platforms Inc4.50%3.92%0.58%
NFLXNetflix, Inc.3.75%3.16%0.59%
TSLATesla Inc4.03%1.96%2.07%

61.5% of FEPI is already inside USMC.

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

FEPIUSMC

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Frequently Asked Questions

Which is cheaper, FEPI or USMC?

FEPI has an expense ratio of 0.65% while USMC charges 0.12%. USMC is the cheaper option, by $53 a year on a $10,000 investment.

Which performed better, FEPI or USMC?

Over the past year FEPI returned +14.02% vs +14.91% for USMC, so USMC leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FEPI or USMC?

FEPI has been the more volatile fund at 16.4% annualized versus 12.1% for USMC. Worst drawdown: FEPI -23.6% vs USMC -19.1%.

Should I hold both FEPI and USMC?

FEPI and USMC have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between FEPI and USMC?

61.5% of FEPI's money is in holdings USMC also owns. 50.7% of USMC's is in holdings FEPI also owns. They hold 10 positions in common, counted across the 20 positions we hold weights for in FEPI and 27 in USMC.

Which pays a higher dividend, FEPI or USMC?

FEPI yields 24.59% while USMC yields 0.74%, so FEPI currently pays the higher dividend yield.

Is USMC better than FEPI?

USMC has a lower expense ratio. FEPI led over 3Y and the full window, USMC over 1Y. USMC is less concentrated, with 55.3% of the fund in its ten largest positions against 63.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.