DFAC vs LCAP

DFACADimensional US Core Equity 2 ETF

LCAPBPrincipal Capital Appreciation Select ETF

In short

DFAC Dimensional's whole-market workhorse: roughly 2,600 US stocks in one ticker, run by managers who weigh federal tax consequences before they trade, at a fee closer to index funds than to active ones.

LCAP A concentrated active large-cap fund from Principal that runs about 50 US stocks for long-term capital growth, and charges well under half what the typical active US equity ETF does.

Stated mandate

DFAC The fund seeks long-term capital appreciation while considering federal income-tax implications in its investment decisions.

LCAP The Fund seeks long-term growth of capital.

Why people hold it

• DFAC 0.17% a year for an actively run fund, well under the median fee among active US equity ETFs.
• About 2,600 US stocks under one ticker, so it holds the market broadly rather than a narrow slice of it.
• Federal income-tax implications sit inside the stated objective, not in a footnote, so they factor into what managers buy and sell.
• A multi-billion-dollar fund with a track record running back to 2007 and one of the strongest implementations in its peer group.

• LCAP 0.29% expense ratio, versus a 0.65% median for active US equity ETFs. Cheap enough to sit near index-style factor funds like DYNF while still running a real stock-picking mandate.
• About 50 holdings, so each pick carries weight. This is a high-conviction book, not a closet index dressed up as active management.
• Plain mandate, plainly stated: long-term growth of capital from US equities, in a standard 1940 Act ETF wrapper. No derivatives overlay, no leverage, no options income machinery.
• Sits in the top quartile of a 234-fund active US equity group on our review, with cost doing much of the heavy lifting.

Worth knowing

• DFAC Actively managed, so there's no published index to check it against. Holdings and tilts shift at the managers' discretion.
• Dimensional's own DFAU runs a US core equity mandate for 0.12%, a slightly lighter fee for a similar shelf.
• All stocks, all US: the mandate is capital appreciation from equities, so it takes the market's full swings, and cash arrives quarterly.

• LCAP Launched in 2025, so there is no long record to judge the manager's stock picking through a full market cycle. Short history means thinner evidence, both ways.
• Thinly traded and modest in size. Use limit orders and expect wider spreads than you would see on the big Dimensional and Fidelity active funds in this category.
• Roughly 50 names means concentration risk cuts both ways: a handful of positions can drive results in either direction, and it will wander from the broad market.

Full DFAC profile⁠

Full LCAP profile⁠