GRID vs. LCTD

Last updated Jun 4, 2026

GRID (First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index) and LCTD (BlackRock World ex U.S. Carbon Transition Readiness ETF) are both Alternative Energy Equities funds. GRID is passively managed, while LCTD is actively managed. Over the past 5 years, GRID returned 17.84%/yr vs 6.77%/yr for LCTD. Their correlation of 0.83 suggests significant overlap in exposure. GRID charges 0.70%/yr vs 0.20%/yr for LCTD.

Performance

GRID vs. LCTD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) 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, GRID achieves a 28.91% return, which is significantly higher than LCTD's 6.33% return.

GRID

• 1D: -0.17%
• 1M: 3.85%
• YTD: 28.91%
• 6M: 29.60%
• 1Y: 51.55%
• 3Y*: 26.27%
• 5Y*: 17.84%
• 10Y*: 19.76%

LCTD

• 1D: -0.76%
• 1M: 1.69%
• YTD: 6.33%
• 6M: 8.97%
• 1Y: 19.28%
• 3Y*: 14.96%
• 5Y*: 6.77%
• 10Y*: —

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

GRID vs. LCTD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
GRID First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index	28.91%	29.65%	15.18%	21.57%	-13.89%	18.10%
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	6.33%	30.42%	3.14%	17.10%	-16.16%	4.36%

Correlation

The correlation between GRID and LCTD is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (All Time) Calculated using the full available price history since Apr 9, 2021	0.83

The correlation between GRID and LCTD has been stable across timeframes, ranging from 0.80 to 0.83 - a consistent structural relationship.

GRID vs. LCTD - Sectors Allocation Comparison

Sectors	GRID	LCTD
Industrials	65.2%	19.5%
Utilities	20.4%	4.0%
Technology	11.0%	9.1%
Consumer Cyclical	3.5%	8.4%
Basic Materials	0.0%	5.8%
Communication Services	-	3.5%
Consumer Defensive	-	6.0%
Energy	-	5.8%
Financial Services	-	26.7%
Healthcare	-	9.3%
Real Estate	-	1.9%

Return for Risk

GRID vs. LCTD — Risk / Return Rank

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

GRID

GRID Risk / Return Rank: 79
GRID Sharpe Ratio Rank: 81
GRID Sortino Ratio Rank: 76
GRID Omega Ratio Rank: 74
GRID Calmar Ratio Rank: 82
GRID Martin Ratio Rank: 82

LCTD

LCTD Risk / Return Rank: 37
LCTD Sharpe Ratio Rank: 37
LCTD Sortino Ratio Rank: 36
LCTD Omega Ratio Rank: 36
LCTD Calmar Ratio Rank: 36
LCTD Martin Ratio Rank: 40

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.

GRID vs. LCTD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) 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.

	GRID	LCTD	Difference
Sharpe ratio: Return per unit of total volatility	2.67	1.33	+1.34
Sortino ratio: Return per unit of downside risk	3.50	1.92	+1.58
Omega ratio: Gain probability vs. loss probability	1.45	1.24	+0.21
Calmar ratio: Return relative to maximum drawdown	4.42	1.77	+2.64
Martin ratio: Return relative to average drawdown	16.72	6.39	+10.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GRID vs. LCTD - Sharpe Ratio Comparison

The current GRID Sharpe Ratio is 2.67, which is higher than the LCTD Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of GRID 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

	GRID	LCTD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.67	1.33	+1.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.85	0.42	+0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.87	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.48	+0.09

Drawdowns

GRID vs. LCTD - Drawdown Comparison

The maximum GRID drawdown since its inception was -40.56%, which is greater than LCTD's maximum drawdown of -29.82%. Use the drawdown chart below to compare losses from any high point for GRID and LCTD.

Drawdown Indicators

	GRID	LCTD	Difference
Max Drawdown Largest peak-to-trough decline	-40.56%	-29.82%	-10.74%
Max Drawdown (1Y) Largest decline over 1 year	-11.73%	-10.92%	-0.81%
Max Drawdown (3Y) Largest decline over 3 years	-20.77%	-13.59%	-7.18%
Max Drawdown (5Y) Largest decline over 5 years	-29.64%	-29.82%	+0.18%
Max Drawdown (10Y) Largest decline over 10 years	-40.56%	—	—
Current Drawdown Current decline from peak	-1.33%	-3.23%	+1.90%
Average Drawdown Average peak-to-trough decline	-8.43%	-6.79%	-1.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	3.03%	+0.06%

Volatility

GRID vs. LCTD - Volatility Comparison

First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) has a higher volatility of 7.95% compared to BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) at 4.31%. This indicates that GRID's price experiences larger fluctuations and is considered to be riskier than LCTD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GRID	LCTD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.95%	4.31%	+3.64%
Volatility (6M) Calculated over the trailing 6-month period	16.08%	11.99%	+4.09%
Volatility (1Y) Calculated over the trailing 1-year period	19.39%	14.55%	+4.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.00%	16.14%	+4.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.81%	16.06%	+6.75%

GRID vs. LCTD - Expense Ratio Comparison

GRID has a 0.70% expense ratio, which is higher than LCTD's 0.20% expense ratio.

Dividends

GRID vs. LCTD - Dividend Comparison

GRID's dividend yield for the trailing twelve months is around 0.77%, less than LCTD's 3.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GRID First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index	0.77%	1.01%	1.06%	1.23%	1.26%	0.63%	0.68%	1.26%	1.28%	1.07%	1.07%	1.23%
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	3.40%	3.61%	3.74%	3.16%	3.52%	2.20%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both GRID and LCTD in my portfolio?

GRID and LCTD have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GRID or LCTD?

GRID has higher volatility (7.95%) compared to LCTD (4.31%). In terms of maximum drawdown, GRID dropped -40.56% vs LCTD's -29.82%.

Which ETF is better, GRID or LCTD?

On 5-year performance, GRID leads with 17.84% vs 6.77% for LCTD. On fees, LCTD is cheaper at 0.20% per year. On volatility, LCTD has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GRID or LCTD?

Over the 5-year period, GRID has performed better with a 17.84% return vs 6.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GRID or LCTD?

LCTD is cheaper with a 0.20% expense ratio, compared with 0.70% for GRID.

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

LCTD has the higher dividend yield at 3.40%, compared with 0.77% for GRID.

What is the main difference between GRID and LCTD?

They also come from different issuers: First Trust and BlackRock. Their fees differ too: 0.70% for GRID and 0.20% for LCTD.

Which has better risk-adjusted returns?

GRID currently has the higher Sharpe Ratio (2.67 vs 1.33), 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.