POWA vs USMC
Invesco Bloomberg Pricing Power ETF vs Principal U.S. Mega-Cap ETF
Which is better, POWA or USMC?
USMC has been ahead.
USMC has a lower expense ratio. USMC led over 1Y, 3Y, 5Y and the full window. POWA is less concentrated, with 22.9% 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 | POWA | USMC |
|---|---|---|
| Expense Ratio | 0.40% | 0.12%Best |
| AUM | $162M | $5.2B |
| Dividend Yield | 0.98% | 0.74% |
| Holdings | 106 | 58 |
| YTD Return | -0.75% | +13.98%Best |
| 1Y Return | -0.04% | +14.91%Best |
| 3Y Return (annualized) | +10.97% | +22.22%Best |
| 5Y Return (annualized) | +6.65% | +14.81%Best |
| Volatility (annualized) | 14.6%Best | 15.3% |
| Max Drawdown | -36.5% | -30.0%Best |
| $10,000 over 5 years | $13,798 | $19,948Best |
| Top 10 Weight | 22.9%Best | 55.3% |
| Fund Family | Invesco (US) | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Dec 15, 2006 | Oct 11, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Oct 14, 2026 (9 years).
POWA 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 9 years both funds cover.
POWA vs USMC Performance
Invesco Bloomberg Pricing Power ETF (POWA) is an ETF from Invesco (US) and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year POWA returned -0.04% while USMC returned +14.91%. Year to date, POWA is down 0.75% versus a gain of 13.98% for USMC.
Over three years, POWA compounded at +10.97% per year against +22.22% for USMC; over five years the annualized figures are +6.65% and +14.81% respectively. Across the full 9-year window we track, USMC has the edge at +14.29% annualized vs +9.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USMC has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.6% for POWA. 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 -36.5% for POWA 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
POWA charges 0.40% per year while USMC charges 0.12%. On a $10,000 position that is $40 vs $12 annually, a gap of $28 per year that compounds over a long holding period. On income, POWA currently yields 0.98% against 0.74% for USMC.
Holdings Overlap
8.0% of POWA's money is in holdings USMC also owns. 12.6% of USMC's money is in holdings POWA also owns.
USMC and POWA share little of their money.
4 positions in common, counted across the 51 positions we hold weights for in POWA and 27 in USMC, against full books of 106 and 58.
What only one of them owns
Our book lists 23 positions for USMC that do not appear in our book for POWA (87.4% of the fund), and 47 for POWA that do not appear in USMC (92.0%).
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.
You are not choosing between two funds in isolation.
Whichever of POWA and USMC you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, POWA or USMC?
POWA has an expense ratio of 0.40% while USMC charges 0.12%. USMC is the cheaper option, by $28 a year on a $10,000 investment.
Which performed better, POWA or USMC?
Over the past year POWA returned -0.04% vs +14.91% for USMC, so USMC leads on 1-year performance. Over the longest common window we track (9 years), POWA annualized +9.19% vs +14.29% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, POWA or USMC?
USMC has been the more volatile fund at 15.3% annualized versus 14.6% for POWA. Worst drawdown: POWA -36.5% vs USMC -30.0%.
Should I hold both POWA and USMC?
POWA and USMC have a monthly-return correlation of 0.86, 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 POWA and USMC?
12.6% of USMC's money is in holdings POWA also owns. 12.6% of USMC's is in holdings POWA also owns. They hold 4 positions in common, counted across the 51 positions we hold weights for in POWA and 27 in USMC.
Which pays a higher dividend, POWA or USMC?
POWA yields 0.98% while USMC yields 0.74%, so POWA currently pays the higher dividend yield.
Is USMC better than POWA?
USMC has a lower expense ratio. USMC led over 1Y, 3Y, 5Y and the full window. POWA is less concentrated, with 22.9% 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.