ESMV vs. LCTD

Last updated Jun 3, 2026

ESMV (iShares ESG MSCI USA Min Vol Factor ETF) and LCTD (BlackRock World ex U.S. Carbon Transition Readiness ETF) are both exchange-traded funds - ESMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross, while LCTD is a Alternative Energy Equities fund actively managed by BlackRock. ESMV is passively managed, while LCTD is actively managed. Over the past 3 years, ESMV returned 11.56%/yr vs 15.26%/yr for LCTD. A 0.64 correlation means they provide meaningful diversification when combined. ESMV charges 0.18%/yr vs 0.20%/yr for LCTD.

Performance

ESMV vs. LCTD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG MSCI USA Min Vol Factor ETF (ESMV) and BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESMV achieves a 6.11% return, which is significantly lower than LCTD's 7.15% return.

ESMV

• 1D: 0.28%
• 1M: 3.87%
• YTD: 6.11%
• 6M: 6.58%
• 1Y: 7.91%
• 3Y*: 11.56%
• 5Y*: —
• 10Y*: —

LCTD

• 1D: 0.63%
• 1M: 1.04%
• YTD: 7.15%
• 6M: 10.29%
• 1Y: 19.55%
• 3Y*: 15.26%
• 5Y*: 7.12%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ESMV vs. LCTD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
ESMV iShares ESG MSCI USA Min Vol Factor ETF	6.11%	5.34%	13.06%	12.20%	-11.08%	3.20%
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	7.15%	30.42%	3.14%	17.10%	-16.16%	-1.94%

Correlation

The correlation between ESMV and LCTD is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (All Time) Calculated using the full available price history since Nov 5, 2021	0.64

The correlation between ESMV and LCTD has been stable across timeframes, ranging from 0.57 to 0.64 - a consistent structural relationship.

Return for Risk

ESMV vs. LCTD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ESMV

ESMV Risk / Return Rank: 23
ESMV Sharpe Ratio Rank: 23
ESMV Sortino Ratio Rank: 22
ESMV Omega Ratio Rank: 23
ESMV Calmar Ratio Rank: 24
ESMV Martin Ratio Rank: 25

LCTD

LCTD Risk / Return Rank: 38
LCTD Sharpe Ratio Rank: 38
LCTD Sortino Ratio Rank: 37
LCTD Omega Ratio Rank: 37
LCTD Calmar Ratio Rank: 38
LCTD Martin Ratio Rank: 42

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ESMV vs. LCTD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI USA Min Vol Factor ETF (ESMV) and BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ESMV	LCTD	Difference
Sharpe ratio Return per unit of total volatility	0.79	1.35	-0.56
Sortino ratio Return per unit of downside risk	1.16	1.95	-0.79
Omega ratio Gain probability vs. loss probability	1.15	1.24	-0.09
Calmar ratio Return relative to maximum drawdown	1.14	1.90	-0.76
Martin ratio Return relative to average drawdown	3.51	6.86	-3.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESMV vs. LCTD - Sharpe Ratio Comparison

The current ESMV Sharpe Ratio is 0.79, which is lower than the LCTD Sharpe Ratio of 1.35. The chart below compares the historical Sharpe Ratios of ESMV and LCTD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ESMV	LCTD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.79	1.35	-0.56
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.44	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.49	-0.04

Drawdowns

ESMV vs. LCTD - Drawdown Comparison

The maximum ESMV drawdown since its inception was -19.77%, smaller than the maximum LCTD drawdown of -29.82%. Use the drawdown chart below to compare losses from any high point for ESMV and LCTD.

Drawdown Indicators

	ESMV	LCTD	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-29.82%	+10.05%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-10.92%	+3.91%
Max Drawdown (3Y) Largest decline over 3 years	-12.16%	-13.59%	+1.43%
Max Drawdown (5Y) Largest decline over 5 years	—	-29.82%	—
Current Drawdown Current decline from peak	0.00%	-2.48%	+2.48%
Average Drawdown Average peak-to-trough decline	-5.33%	-6.80%	+1.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.28%	3.02%	-0.74%

Volatility

ESMV vs. LCTD - Volatility Comparison

The current volatility for iShares ESG MSCI USA Min Vol Factor ETF (ESMV) is 2.08%, while BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) has a volatility of 4.48%. This indicates that ESMV experiences smaller price fluctuations and is considered to be less risky than LCTD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESMV	LCTD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.08%	4.48%	-2.40%
Volatility (6M) Calculated over the trailing 6-month period	6.27%	11.98%	-5.71%
Volatility (1Y) Calculated over the trailing 1-year period	10.03%	14.56%	-4.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.24%	16.14%	-2.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.24%	16.06%	-2.82%

ESMV vs. LCTD - Expense Ratio Comparison

ESMV has a 0.18% expense ratio, which is lower than LCTD's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ESMV vs. LCTD - Dividend Comparison

ESMV's dividend yield for the trailing twelve months is around 1.57%, less than LCTD's 3.37% yield.

Position	TTM	2025	2024	2023	2022	2021
ESMV iShares ESG MSCI USA Min Vol Factor ETF	1.57%	1.56%	1.71%	1.75%	1.66%	0.24%
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	3.37%	3.61%	3.74%	3.16%	3.52%	2.20%

Frequently Asked Questions

Can I hold both ESMV and LCTD in my portfolio?

ESMV and LCTD have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESMV or LCTD?

LCTD has higher volatility (4.48%) compared to ESMV (2.08%). In terms of maximum drawdown, ESMV dropped -19.77% vs LCTD's -29.82%.

Which ETF is better, ESMV or LCTD?

On 3-year performance, LCTD leads with 15.26% vs 11.56% for ESMV. On fees, ESMV is cheaper at 0.18% per year. On volatility, ESMV has been the lower-risk option at 2.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESMV or LCTD?

Over the 3-year period, LCTD has performed better with a 15.26% return vs 11.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESMV or LCTD?

ESMV is cheaper with a 0.18% expense ratio, compared with 0.20% for LCTD.

Which ETF pays a higher dividend yield, ESMV or LCTD?

LCTD has the higher dividend yield at 3.37%, compared with 1.57% for ESMV.

What is the main difference between ESMV and LCTD?

ESMV is categorized as Large Cap Blend Equities, while LCTD is Alternative Energy Equities. They also come from different issuers: iShares and BlackRock. Their fees differ too: 0.18% for ESMV and 0.20% for LCTD.

Which has better risk-adjusted returns?

LCTD currently has the higher Sharpe Ratio (1.35 vs 0.79), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.