%!TeX program = lualatex
\documentclass{article}
\usepackage{fontspec}
\setmainfont{texgyrepagella-regular.otf}[
ItalicFont = texgyrepagella-italic.otf ,
BoldFont = texgyrepagella-bold.otf ,
BoldItalicFont = texgyrepagella-bolditalic.otf ,
SmallCapsFeatures = { Ligatures = TeX, LetterSpace = 5.0 } ,
ItalicFeatures = { Ligatures = TeX, LetterSpace = 20.0 } ,
Ligatures = TeX ,
]
\begin{document}
\rmfamily
Works --- but {\scshape Doesn't work --- Why?}
\textit{LetterSpace --- causes it}