LCTD vs. BPAY

Last updated Jun 4, 2026

LCTD (BlackRock World ex U.S. Carbon Transition Readiness ETF) and BPAY (BlackRock Future Financial and Technology ETF) are both exchange-traded funds - LCTD is a Alternative Energy Equities fund actively managed by BlackRock, while BPAY is a Financials Equities fund actively managed by BlackRock. Both are actively managed. Over the past 3 years, LCTD returned 14.96%/yr vs 8.49%/yr for BPAY. A 0.70 correlation means they provide meaningful diversification when combined. LCTD charges 0.20%/yr vs 0.70%/yr for BPAY.

Performance

LCTD vs. BPAY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) and BlackRock Future Financial and Technology ETF (BPAY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCTD achieves a 6.33% return, which is significantly higher than BPAY's -12.44% return.

LCTD

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

BPAY

• 1D: -4.23%
• 1M: -4.47%
• YTD: -12.44%
• 6M: -14.32%
• 1Y: -10.80%
• 3Y*: 8.49%
• 5Y*: —
• 10Y*: —

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

LCTD vs. BPAY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	6.33%	30.42%	3.14%	17.10%	-1.85%
BPAY BlackRock Future Financial and Technology ETF	-12.44%	8.54%	17.28%	13.19%	-16.39%

Correlation

The correlation between LCTD and BPAY is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (All Time) Calculated using the full available price history since Aug 19, 2022	0.70

The correlation between LCTD and BPAY shifts across timeframes, from 0.56 (1 year) to 0.70 (all time), reflecting how their relationship changes across market environments.

LCTD vs. BPAY - Sectors Allocation Comparison

Sectors	LCTD	BPAY
Financial Services	26.7%	53.0%
Industrials	19.5%	4.6%
Healthcare	9.3%	-
Technology	9.1%	36.4%
Consumer Cyclical	8.4%	6.0%
Consumer Defensive	6.0%	-
Basic Materials	5.8%	-
Energy	5.8%	-
Utilities	4.0%	-
Communication Services	3.5%	-
Real Estate	1.9%	2.2%

Return for Risk

LCTD vs. BPAY — Risk / Return Rank

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

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

BPAY

BPAY Risk / Return Rank: 5
BPAY Sharpe Ratio Rank: 5
BPAY Sortino Ratio Rank: 5
BPAY Omega Ratio Rank: 5
BPAY Calmar Ratio Rank: 6
BPAY Martin Ratio Rank: 6

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.

LCTD vs. BPAY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) and BlackRock Future Financial and Technology ETF (BPAY). 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.

	LCTD	BPAY	Difference
Sharpe ratio: Return per unit of total volatility	1.33	-0.42	+1.75
Sortino ratio: Return per unit of downside risk	1.92	-0.42	+2.35
Omega ratio: Gain probability vs. loss probability	1.24	0.95	+0.29
Calmar ratio: Return relative to maximum drawdown	1.77	-0.32	+2.10
Martin ratio: Return relative to average drawdown	6.39	-0.64	+7.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LCTD vs. BPAY - Sharpe Ratio Comparison

The current LCTD Sharpe Ratio is 1.33, which is higher than the BPAY Sharpe Ratio of -0.42. The chart below compares the historical Sharpe Ratios of LCTD and BPAY, 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

	LCTD	BPAY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.33	-0.42	+1.75
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.06	+0.42

Drawdowns

LCTD vs. BPAY - Drawdown Comparison

The maximum LCTD drawdown since its inception was -29.82%, smaller than the maximum BPAY drawdown of -33.62%. Use the drawdown chart below to compare losses from any high point for LCTD and BPAY.

Drawdown Indicators

	LCTD	BPAY	Difference
Max Drawdown Largest peak-to-trough decline	-29.82%	-33.62%	+3.80%
Max Drawdown (1Y) Largest decline over 1 year	-10.92%	-33.62%	+22.70%
Max Drawdown (3Y) Largest decline over 3 years	-13.59%	-33.62%	+20.03%
Max Drawdown (5Y) Largest decline over 5 years	-29.82%	—	—
Current Drawdown Current decline from peak	-3.23%	-26.03%	+22.80%
Average Drawdown Average peak-to-trough decline	-6.79%	-10.54%	+3.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.03%	16.98%	-13.95%

Volatility

LCTD vs. BPAY - Volatility Comparison

The current volatility for BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) is 4.31%, while BlackRock Future Financial and Technology ETF (BPAY) has a volatility of 6.91%. This indicates that LCTD experiences smaller price fluctuations and is considered to be less risky than BPAY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTD	BPAY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.31%	6.91%	-2.60%
Volatility (6M) Calculated over the trailing 6-month period	11.99%	18.71%	-6.72%
Volatility (1Y) Calculated over the trailing 1-year period	14.55%	26.01%	-11.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.14%	24.35%	-8.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.06%	24.35%	-8.29%

LCTD vs. BPAY - Expense Ratio Comparison

LCTD has a 0.20% expense ratio, which is lower than BPAY's 0.70% expense ratio.

Dividends

LCTD vs. BPAY - Dividend Comparison

LCTD's dividend yield for the trailing twelve months is around 3.40%, less than BPAY's 7.41% yield.

Position	TTM	2025	2024	2023	2022	2021
BPAY BlackRock Future Financial and Technology ETF	7.41%	6.49%	0.48%	1.18%	0.18%	0.00%
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	3.40%	3.61%	3.74%	3.16%	3.52%	2.20%

Frequently Asked Questions

Can I hold both LCTD and BPAY in my portfolio?

LCTD and BPAY have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LCTD or BPAY?

BPAY has higher volatility (6.91%) compared to LCTD (4.31%). In terms of maximum drawdown, LCTD dropped -29.82% vs BPAY's -33.62%.

Which ETF is better, LCTD or BPAY?

On 3-year performance, LCTD leads with 14.96% vs 8.49% for BPAY. 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, LCTD or BPAY?

Over the 3-year period, LCTD has performed better with a 14.96% return vs 8.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTD or BPAY?

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

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

BPAY has the higher dividend yield at 7.41%, compared with 3.40% for LCTD.

What is the main difference between LCTD and BPAY?

LCTD is categorized as Alternative Energy Equities, while BPAY is Financials Equities. Their fees differ too: 0.20% for LCTD and 0.70% for BPAY.

Which has better risk-adjusted returns?

LCTD currently has the higher Sharpe Ratio (1.33 vs -0.42), 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.