USMC vs XLSR
Principal U.S. Mega-Cap ETF vs State Street US Sector Rotation ETF
Which is better, USMC or XLSR?
Nearly the same fund. USMC costs less.
USMC has a lower expense ratio. USMC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. USMC is less concentrated, with 55.3% of the fund in its ten largest positions against 85.3%.
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 | USMC | XLSR |
|---|---|---|
| Expense Ratio | 0.12%Best | 0.70% |
| AUM | $5.2B | $1.1B |
| Dividend Yield | 0.74% | 0.45% |
| Holdings | 58 | 26 |
| YTD Return | +13.98%Best | +7.62% |
| 1Y Return | +14.91%Best | +12.95% |
| 3Y Return (annualized) | +22.22%Best | +17.39% |
| 5Y Return (annualized) | +14.81%Best | +9.72% |
| Volatility (annualized) | 15.7%Best | 16.1% |
| Max Drawdown | -30.0%Best | -32.9% |
| $10,000 over 5 years | $19,948Best | $15,901 |
| Top 10 Weight | 55.3%Best | 85.3% |
| Fund Family | Principal Funds | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 11, 2017 | Apr 2, 2019 |
Volatility and max drawdown are measured over the window both funds cover: Apr 3, 2019 to Oct 14, 2026 (7.5 years).
USMC vs XLSR 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 7.5 years both funds cover.
USMC vs XLSR Performance
Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds and State Street US Sector Rotation ETF (XLSR) is an ETF from State Street Investment Management. Over the past year USMC returned +14.91% while XLSR returned +12.95%. Year to date, USMC is up 13.98% versus a gain of 7.62% for XLSR.
Over three years, USMC compounded at +22.22% per year against +17.39% for XLSR; over five years the annualized figures are +14.81% and +9.72% respectively. Across the full 8-year window we track, USMC has the edge at +15.38% annualized vs +12.30%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLSR has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.7% 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 -30.0% for USMC and -32.9% for XLSR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
USMC charges 0.12% per year while XLSR charges 0.70%. On a $10,000 position that is $12 vs $70 annually, a gap of $58 per year that compounds over a long holding period. On income, USMC currently yields 0.74% against 0.45% for XLSR.
Holdings Overlap
53.0% of USMC's money is in holdings XLSR also owns. 23.7% of XLSR's money is in holdings USMC also owns.
The two portfolios partly overlap.
11 positions in common, counted across the 27 positions we hold weights for in USMC and 25 in XLSR, against full books of 58 and 26.
What only one of them owns
Measured across the 27 and 25 positions we hold weights for.
USMC holds 16 positions XLSR does not, 46.9% of the fund.
Largest: JPM 4.65%, V 4.54%, MA 4.32%, BAC 3.82%, COST 3.51%
Top Shared Holdings
| Stock | Weight in USMC | Weight in XLSR | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.99% | 4.47% | 3.52% |
| AAPLApple, Inc | 7.40% | 4.12% | 3.28% |
| GOOGLAlphabet Inc | 5.33% | 5.17% | 0.16% |
| MSFTMicrosoft Corp | 5.55% | 2.98% | 2.57% |
| MUMicron Technology, Inc. | 7.18% | 0.62% | 6.56% |
| METAMeta Platforms Inc | 3.92% | 3.03% | 0.89% |
| AVGOBroadcom Inc | 4.44% | 1.41% | 3.03% |
| AMZNAmazon.Com Inc | 3.77% | 0.95% | 2.82% |
| NFLXNetflix, Inc. | 3.16% | 0.54% | 2.62% |
| XOMExxonmobil Corp. | 2.34% | 0.41% | 1.93% |
53.0% of USMC is already inside XLSR.
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, USMC or XLSR?
USMC has an expense ratio of 0.12% while XLSR charges 0.70%. USMC is the cheaper option, by $58 a year on a $10,000 investment.
Which performed better, USMC or XLSR?
Over the past year USMC returned +14.91% vs +12.95% for XLSR, so USMC leads on 1-year performance. Over the longest common window we track (8 years), USMC annualized +15.38% vs +12.30% for XLSR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USMC or XLSR?
XLSR has been the more volatile fund at 16.1% annualized versus 15.7% for USMC. Worst drawdown: USMC -30.0% vs XLSR -32.9%.
Should I hold both USMC and XLSR?
USMC and XLSR have a monthly-return correlation of 0.96, 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 USMC and XLSR?
53.0% of USMC's money is in holdings XLSR also owns. 23.7% of XLSR's is in holdings USMC also owns. They hold 11 positions in common, counted across the 27 positions we hold weights for in USMC and 25 in XLSR.
Which pays a higher dividend, USMC or XLSR?
USMC yields 0.74% while XLSR yields 0.45%, so USMC currently pays the higher dividend yield.
Is XLSR better than USMC?
USMC has a lower expense ratio. USMC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. USMC is less concentrated, with 55.3% of the fund in its ten largest positions against 85.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.