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BlackRock U.S. Carbon Transition Readiness ETF (LCTU) Sharpe Ratio: 2.25

ETF · Currency in USD · Last updated Jun 3, 2026

LCTU is an actively managed ETF by BlackRock. LCTU launched on Apr 6, 2021 and has a 0.15% expense ratio.

LCTU's Sharpe Ratio of 2.25 indicates that for each unit of volatility, it generates 2.25 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 3, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

LCTU Sharpe Ratio Rank

LCTU Sharpe Ratio Rank: 66.867
Above Average

LCTU ranks above 66.8% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating above-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Above-average risk-adjusted returns with room for improvement
  • Compare against category peers to gauge relative positioning
  • Monitor for movement toward top tier or decline toward median
  • Consider pairing with top-tier holdings to improve portfolio efficiency

LCTU Sharpe Ratio Market Positioning

The chart shows LCTU's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.91 or lower
  • Yellow zone (middle 50%): 0.91 to 2.51
  • Green zone (top 25%): 2.51 or higher
  • Top 1%: 7.87+
  • Median: 1.77 — half of all investments score higher

How it compares to other similar ETFs

The table compares BlackRock U.S. Carbon Transition Readiness ETF's Sharpe Ratio with other ETFs in the ESG, Sustainable category across multiple time periods, showing how LCTU's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 3, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
PULTPutnam ESG Ultra Short ETF6.72
VCLNVirtus Duff & Phelps Clean Energy ETF3.46
EMCSXtrackers MSCI Emerging Markets Climate Selection ETF3.03
EFIVState Street SPDR S&P 500 ESG ETF2.75
SNPEXtrackers S&P 500 ESG ETF2.68
PRVSParnassus Value Select ETF2.66
ESGUiShares ESG Aware MSCI USA ETF2.46
KLMNInvesco MSCI North America Climate ETF2.43
CBSEClough Select Equity ETF2.40
EFFEHarbor Osmosis Emerging Markets Resource Efficient ETF2.28
LCTUBlackRock U.S. Carbon Transition Readiness ETF2.25

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows LCTU's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when LCTU consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does LCTU fit in your portfolio?

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