PCT vs PCA Which Outperforms?

Passive investing has gained popularity in recent years, with many investors opting for index funds like the S&P 500 Index to build their portfolios. Two popular options for passive investing are PCT and PCA stocks. PCT, or passive total return funds, aim to track the performance of a specific index by holding a diversified basket of securities. On the other hand, PCA, or passive capital appreciation funds, focus on maximizing long-term capital growth by investing in high-growth stocks. Understanding the differences between PCT and PCA stocks can help investors make informed decisions about their investment strategies.

PCT or PCA?

When comparing PCT and PCA, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between PCT and PCA.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. PCT has a dividend yield of -%, while PCA has a dividend yield of 3.71%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PCT reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, PCA reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with PCT P/E ratio at 0.00 and PCA's P/E ratio at 23.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PCT P/B ratio is 0.00 while PCA's P/B ratio is 2.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PCT has seen a 5-year revenue growth of -0.74%, while PCA's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PCT's ROE at 0.00% and PCA's ROE at 10.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.00 for PCT and ¥2175.00 for PCA. Over the past year, PCT's prices ranged from $0.00 to $0.00, with a yearly change of 1700.00%. PCA's prices fluctuated between ¥1038.00 and ¥2530.00, with a yearly change of 143.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.