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LCAP - ETF AI Analysis

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LCAP

Principal Capital Appreciation Select ETF (LCAP)

Rating:71Outperform
Price Target:
LCAP, the Principal Capital Appreciation Select ETF, earns a solid overall rating thanks to large positions in high-quality tech leaders like Alphabet, Apple, Microsoft, and Nvidia, which benefit from strong financial performance and long-term growth in areas like AI, cloud, and services. These strengths are partly offset by weaker spots such as McKesson and Marathon Petroleum, where leverage, bearish technical trends, and market caution weigh on their outlook. A key risk for the fund is its heavy tilt toward a handful of big technology names, which can increase volatility if that sector faces a downturn.
Positive Factors
Solid Recent Performance
The ETF has shown steady gains so far this year and over the last few months, indicating positive recent momentum.
Leadership in Technology and Growth Names
Several major technology and growth-oriented holdings, such as Nvidia, Alphabet, Broadcom, Amazon, and Casey’s General, have delivered strong performance, helping drive the fund’s returns.
Broad Sector Diversification
The fund spreads its investments across many sectors, including technology, consumer, financials, industrials, and health care, which helps reduce the impact if any one sector struggles.
Negative Factors
Heavy Tilt Toward Technology
A large portion of the portfolio is in technology stocks, which can make the fund more sensitive to swings in that sector.
Mixed Results Among Top Holdings
Some large positions like Apple, Microsoft, JPMorgan, and Visa have shown weaker recent performance, which can drag on overall returns if the trend continues.
High U.S. Concentration
With almost all assets invested in U.S. companies, the ETF offers little geographic diversification and is heavily tied to the U.S. market’s fortunes.

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

LCAP Summary

The Principal Capital Appreciation Select ETF (LCAP) is an actively managed fund that aims for long-term growth by investing mainly in large, well-known U.S. companies across many sectors. It doesn’t track a specific index, but instead focuses on the total U.S. stock market with a tilt toward big, established firms. Top holdings include familiar names like Apple and Nvidia, along with other major tech, financial, and consumer companies. Someone might invest in LCAP for broad diversification and the potential for growth from leading U.S. businesses. However, it is heavily invested in stocks, especially technology, so its value can rise and fall significantly with the 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 hard into U.S. mega-cap tech, with Nvidia, Broadcom, and Amazon doing most of the heavy lifting as AI and cloud demand keep those names rising. Alphabet has been a steady engine, while Apple has regained some momentum after a softer stretch earlier this year. Microsoft and Visa, however, look a bit tired, with more mixed or lagging trends that can quietly tug on returns. Overall, this is a U.S.-only story dominated by Big Tech and digital platforms, so performance will largely follow the fortunes of those giants.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia7.77%$20.36M$5.06T99.22%
76
Outperform
Apple5.81%$15.22M$3.98T27.35%
79
Outperform
Alphabet Class A5.42%$14.20M$4.15T118.13%
85
Outperform
Microsoft4.86%$12.75M$3.15T8.60%
79
Outperform
Amazon4.31%$11.29M$2.84T39.12%
71
Outperform
Broadcom4.28%$11.23M$2.00T117.28%
76
Outperform
Casey's General3.40%$8.91M$29.55B77.11%
68
Neutral
3.19%$8.37M
JPMorgan Chase2.61%$6.84M$831.44B28.13%
72
Outperform
Visa2.42%$6.34M$589.76B-8.25%
70
Outperform

LCAP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
30.13
Positive
100DMA
30.06
Positive
200DMA
29.27
Positive
Market Momentum
MACD
0.57
Negative
RSI
65.34
Neutral
STOCH
87.51
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 30.68, equal to the 50-day MA of 30.13, and equal to the 200-day MA of 29.27, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 65.34 is Neutral, neither overbought nor oversold. The STOCH value of 87.51 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
$262.64M0.29%
71
Outperform
$950.18M0.59%
69
Neutral
$866.63M1.30%
64
Neutral
$771.79M0.45%
74
Outperform
$735.10M0.22%
63
Neutral
$681.71M0.50%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LCAP
Principal Capital Appreciation Select ETF
31.60
7.00
28.46%
SYLD
Cambria Shareholder Yield ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
BGDV
Bahl & Gaynor Dividend ETF
AVTM
Avantis Total Equity Markets ETF
XCHG
AB US 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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