LCTD vs. ESMV
LCTD (BlackRock World ex U.S. Carbon Transition Readiness ETF) and ESMV (iShares ESG MSCI USA Min Vol Factor ETF) are both exchange-traded funds - LCTD is a Alternative Energy Equities fund actively managed by BlackRock, while ESMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross. LCTD is actively managed, while ESMV is passively managed. Over the past 3 years, LCTD returned 14.96%/yr vs 11.27%/yr for ESMV. A 0.64 correlation means they provide meaningful diversification when combined. LCTD charges 0.20%/yr vs 0.18%/yr for ESMV.
Performance
LCTD vs. ESMV - Performance Comparison
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Returns By Period
In the year-to-date period, LCTD achieves a 6.33% return, which is significantly higher than ESMV's 5.28% return.
LCTD
- 1D
- -0.76%
- 1M
- 1.69%
- YTD
- 6.33%
- 6M
- 8.97%
- 1Y
- 19.28%
- 3Y*
- 14.96%
- 5Y*
- 6.77%
- 10Y*
- —
ESMV
- 1D
- -0.78%
- 1M
- 3.36%
- YTD
- 5.28%
- 6M
- 5.39%
- 1Y
- 6.76%
- 3Y*
- 11.27%
- 5Y*
- —
- 10Y*
- —
LCTD vs. ESMV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF | 6.33% | 30.42% | 3.14% | 17.10% | -16.16% | -1.94% |
ESMV iShares ESG MSCI USA Min Vol Factor ETF | 5.28% | 5.34% | 13.06% | 12.20% | -11.08% | 3.20% |
Correlation
The correlation between LCTD and ESMV is 0.58, 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 | 0.58 |
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 LCTD and ESMV has been stable across timeframes, ranging from 0.58 to 0.64 - a consistent structural relationship.
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Return for Risk
LCTD vs. ESMV — Risk / Return Rank
LCTD
ESMV
LCTD vs. ESMV - 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 iShares ESG MSCI USA Min Vol Factor ETF (ESMV). 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 | ESMV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.66 | ||
| Sortino ratioReturn per unit of downside risk | +0.92 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.13 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.77 | 0.97 | +0.80 |
| Martin ratioReturn relative to average drawdown | 6.39 | 2.97 | +3.41 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| LCTD | ESMV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.33 | 0.67 | +0.66 |
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 | 0.44 | +0.04 |
Drawdowns
LCTD vs. ESMV - Drawdown Comparison
The maximum LCTD drawdown since its inception was -29.82%, which is greater than ESMV's maximum drawdown of -19.77%. Use the drawdown chart below to compare losses from any high point for LCTD and ESMV.
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Drawdown Indicators
| LCTD | ESMV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.82% | -19.77% | -10.05% |
Max Drawdown (1Y)Largest decline over 1 year | -10.92% | -7.01% | -3.91% |
Max Drawdown (3Y)Largest decline over 3 years | -13.59% | -12.16% | -1.43% |
Max Drawdown (5Y)Largest decline over 5 years | -29.82% | — | — |
Current DrawdownCurrent decline from peak | -3.23% | -0.78% | -2.45% |
Average DrawdownAverage peak-to-trough decline | -6.79% | -5.33% | -1.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 2.28% | +0.75% |
Volatility
LCTD vs. ESMV - Volatility Comparison
BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) has a higher volatility of 4.31% compared to iShares ESG MSCI USA Min Vol Factor ETF (ESMV) at 2.25%. This indicates that LCTD's price experiences larger fluctuations and is considered to be riskier than ESMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LCTD | ESMV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.31% | 2.25% | +2.06% |
Volatility (6M)Calculated over the trailing 6-month period | 11.99% | 6.26% | +5.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.55% | 10.06% | +4.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.14% | 13.24% | +2.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.06% | 13.24% | +2.82% |
LCTD vs. ESMV - Expense Ratio Comparison
LCTD has a 0.20% expense ratio, which is higher than ESMV's 0.18% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
LCTD vs. ESMV - Dividend Comparison
LCTD's dividend yield for the trailing twelve months is around 3.40%, more than ESMV's 1.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
ESMV iShares ESG MSCI USA Min Vol Factor ETF | 1.58% | 1.56% | 1.71% | 1.75% | 1.66% | 0.24% |
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
LCTD and ESMV have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LCTD has higher volatility (4.31%) compared to ESMV (2.25%). In terms of maximum drawdown, LCTD dropped -29.82% vs ESMV's -19.77%.
On 3-year performance, LCTD leads with 14.96% vs 11.27% for ESMV. On fees, ESMV is cheaper at 0.18% per year. On volatility, ESMV has been the lower-risk option at 2.25%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, LCTD has performed better with a 14.96% return vs 11.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ESMV is cheaper with a 0.18% expense ratio, compared with 0.20% for LCTD.
LCTD has the higher dividend yield at 3.40%, compared with 1.58% for ESMV.
LCTD is categorized as Alternative Energy Equities, while ESMV is Large Cap Blend Equities. They also come from different issuers: BlackRock and iShares. Their fees differ too: 0.20% for LCTD and 0.18% for ESMV.
LCTD currently has the higher Sharpe Ratio (1.33 vs 0.67), 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.
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