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LCAP - ETF AI Analysis

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LCAP

Principal Capital Appreciation Select ETF (LCAP)

Rating:73Outperform
Price Target:
LCAP, the Principal Capital Appreciation Select ETF, appears to be a solid-quality fund supported by major holdings like Alphabet, Apple, Microsoft, and Nvidia, all benefiting from strong financial performance, positive earnings commentary, and long-term growth drivers in AI, cloud, and services. Some positions such as Amazon, Visa, and GE Vernova face issues like premium valuations, short-term technical weakness, or cash flow challenges, which can modestly weigh on the fund’s rating. A key risk is the fund’s heavy tilt toward large technology and AI-related companies, which can increase sensitivity to shifts in tech valuations and market sentiment.
Positive Factors
Strong Overall Performance
The fund has delivered strong year-to-date and recent short-term returns, showing solid momentum.
Leading Growth Companies in Top Holdings
Many of the largest positions are well-known technology and financial leaders that have generally performed well, helping drive the ETF’s gains.
Broad Sector Diversification
The ETF spreads its investments across many sectors, which can help reduce the impact if any single industry faces a downturn.
Negative Factors
Heavy Tilt Toward Technology
A large share of the portfolio is in technology stocks, which can make the fund more sensitive to swings in that sector.
High Concentration in a Few Stocks
The top holdings make up a significant portion of the fund, increasing the risk if one of these big positions runs into trouble.
Limited Geographic Diversification
With almost all assets in U.S. companies, the ETF offers little exposure to international markets and may be more affected by U.S.-specific economic or policy changes.

LCAP vs. SPDR S&P 500 ETF (SPY)

LCAP Summary

Principal Capital Appreciation Select ETF (LCAP) is an actively managed fund that aims for long-term growth by investing mainly in large U.S. companies. It follows a broad U.S. market theme with a tilt toward big, established firms, especially in technology and financials. Well-known holdings include Nvidia and Apple, along with other major tech and banking names. Someone might invest in LCAP to get diversified exposure to leading U.S. companies with the potential for growth and some stability from large-cap stocks. A key risk is that it is heavily invested in tech, so its value can rise or fall sharply with that sector and the overall stock market.
How much will it cost me?The Principal Capital Appreciation Select ETF (LCAP) has an expense ratio of 0.29%, which means you’ll pay $2.90 per year for every $1,000 invested. This is slightly higher than average because the fund is actively managed, meaning professional managers make investment decisions to potentially enhance returns.
What would affect this ETF?The Principal Capital Appreciation Select ETF (LCAP) could benefit from continued growth in the technology sector, which makes up a significant portion of its holdings, especially with top companies like Nvidia, Microsoft, and Apple driving innovation. However, rising interest rates or economic slowdowns could negatively impact consumer spending and financial stocks, which are also key components of the fund. Additionally, regulatory changes in the U.S. targeting large-cap tech firms may pose risks to the ETF's performance.

LCAP Top 10 Holdings

LCAP is leaning heavily on Big Tech and AI, with Nvidia, Apple, and Broadcom doing much of the heavy lifting thanks to rising momentum tied to chips and data centers. Apple, in particular, looks like the fund’s steady engine, while Alphabet and Amazon have been more mixed lately, occasionally losing steam and holding back returns. Microsoft has also been a bit of a drag in recent months despite its strong cloud and AI story. Beyond tech, Visa and JPMorgan add a financial backbone, but overall this is a U.S.-centric, growth-tilted portfolio with a clear tech bias.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia7.87%$147.70M$5.42T19.49%
76
Outperform
Apple6.27%$117.75M$4.57T35.69%
79
Outperform
Alphabet Class A5.23%$98.15M$4.33T77.87%
85
Outperform
Microsoft5.09%$95.49M$3.71T-3.01%
79
Outperform
Amazon4.07%$76.39M$2.96T25.66%
71
Outperform
Broadcom3.73%$70.00M$2.04T38.99%
76
Outperform
Visa3.16%$59.30M$676.80B7.57%
70
Outperform
JPMorgan Chase3.01%$56.55M$950.35B24.25%
72
Outperform
Eli Lilly & Co2.44%$45.83M$1.12T93.94%
72
Outperform
Costco2.41%$45.16M$420.34B-3.64%
72
Outperform

LCAP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
33.08
Positive
100DMA
32.15
Positive
200DMA
31.01
Positive
Market Momentum
MACD
0.25
Negative
RSI
61.75
Neutral
STOCH
88.77
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For LCAP, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 33.35, equal to the 50-day MA of 33.08, and equal to the 200-day MA of 31.01, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 61.75 is Neutral, neither overbought nor oversold. The STOCH value of 88.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LCAP.

LCAP Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.89B0.29%
73
Outperform
$5.28B0.98%
70
Neutral
$5.08B0.50%
75
Outperform
$4.43B0.34%
74
Outperform
$3.48B0.14%
73
Outperform
$2.51B0.31%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LCAP
Principal Capital Appreciation Select ETF
33.97
6.25
22.55%
AKRE
Akre Focus ETF
QLTY
GMO U.S. Quality ETF
TSPA
T. Rowe Price U.S. Equity Research ETF
DCOR
Dimensional US Core Equity 1 ETF
APUE
ActivePassive U.S. Equity ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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