LCTD vs. LCTU

Last updated Aug 2, 2026

LCTD (BlackRock World ex U.S. Carbon Transition Readiness ETF) and LCTU (BlackRock U.S. Carbon Transition Readiness ETF) are both exchange-traded funds - LCTD is a Alternative Energy Equities fund actively managed by BlackRock, while LCTU is a ESG fund actively managed by BlackRock. Both are actively managed. Over the past 5 years, LCTD returned 7.67%/yr vs 11.42%/yr for LCTU. Their 0.78 correlation means they have sometimes moved together and sometimes differently. LCTD charges 0.20%/yr vs 0.15%/yr for LCTU.

Performance

LCTD vs. LCTU - 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 U.S. Carbon Transition Readiness ETF (LCTU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCTD achieves a 9.23% return, which is significantly higher than LCTU's 8.70% return.

LCTD

• 1D: -0.83%
• 1M: 1.33%
• 6M: 4.65%
• YTD: 9.23%
• 1Y: 22.36%
• 3Y*: 14.85%
• 5Y*: 7.67%
• 10Y*: —
• ALL TIME*: 8.03%

LCTU

• 1D: 0.50%
• 1M: 0.00%
• 6M: 7.81%
• YTD: 8.70%
• 1Y: 19.58%
• 3Y*: 18.15%
• 5Y*: 11.42%
• 10Y*: —
• ALL TIME*: 12.41%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	$325.83K	$398.66K	$1.75M
LCTU BlackRock U.S. Carbon Transition Readiness ETF	$1.76M	$15.41M	$7.11M

LCTD vs. LCTU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	9.23%	30.42%	3.14%	17.10%	-16.16%	4.48%
LCTU BlackRock U.S. Carbon Transition Readiness ETF	8.70%	16.96%	24.00%	25.38%	-20.02%	17.74%

Correlation

The correlation between LCTD and LCTU is 0.78, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.78
Correlation (3Y) Balances recent behavior with more history.	0.74
Correlation (5Y) Shows whether the relationship held over a longer period.	0.77
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.78

The correlation between LCTD and LCTU has been stable across timeframes, ranging from 0.74 to 0.78 - a consistent structural relationship.

LCTD vs. LCTU - Sectors Allocation Comparison

Sectors	LCTD	LCTU
Financial Services	27.8%	11.8%
Industrials	17.3%	9.1%
Technology	10.8%	37.2%
Healthcare	9.6%	9.0%
Basic Materials	7.2%	1.8%
Consumer Cyclical	6.2%	10.0%
Consumer Defensive	5.7%	4.4%
Energy	5.3%	2.9%
Utilities	3.6%	2.4%
Communication Services	3.1%	9.3%
Real Estate	1.5%	2.2%

Return for Risk

LCTD vs. LCTU — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

LCTD

LCTD Risk / Return Rank: 60
LCTD Sharpe Ratio Rank: 63
LCTD Sortino Ratio Rank: 63
LCTD Omega Ratio Rank: 60
LCTD Calmar Ratio Rank: 57
LCTD Martin Ratio Rank: 58

LCTU

LCTU Risk / Return Rank: 57
LCTU Sharpe Ratio Rank: 57
LCTU Sortino Ratio Rank: 55
LCTU Omega Ratio Rank: 54
LCTU Calmar Ratio Rank: 53
LCTU Martin Ratio Rank: 66

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

LCTD vs. LCTU - 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 U.S. Carbon Transition Readiness ETF (LCTU). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LCTD	LCTU	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.36	+0.09
Sortino ratio: Return per unit of downside risk	2.09	1.91	+0.18
Omega ratio: Gain probability vs. loss probability	1.26	1.24	+0.02
Calmar ratio: Return relative to maximum drawdown	2.01	1.88	+0.12
Martin ratio: Return relative to average drawdown	6.99	7.95	-0.95

LCTD vs. LCTU - Sharpe Ratio Comparison

The current LCTD Sharpe Ratio is 1.45, which is comparable to the LCTU Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of LCTD and LCTU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LCTD vs. LCTU - Drawdown Comparison

The maximum LCTD drawdown since its inception was -29.82%, which is greater than LCTU's maximum drawdown of -25.93%. Use the drawdown chart below to compare losses from any high point for LCTD and LCTU.

Drawdown Indicators

	LCTD	LCTU	Difference
Max Drawdown Largest peak-to-trough decline	-29.82%	-25.93%	-3.89%
Max Drawdown (1Y) Largest decline over 1 year	-10.92%	-9.38%	-1.54%
Max Drawdown (3Y) Largest decline over 3 years	-13.59%	-19.83%	+6.24%
Max Drawdown (5Y) Largest decline over 5 years	-29.82%	-25.93%	-3.89%
Current Drawdown Current decline from peak	-0.83%	-1.26%	+0.43%
Average Drawdown Average peak-to-trough decline	-6.66%	-6.17%	-0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.13%	2.22%	+0.91%

Volatility

LCTD vs. LCTU - Volatility Comparison

BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) has a higher volatility of 4.39% compared to BlackRock U.S. Carbon Transition Readiness ETF (LCTU) at 3.28%. This indicates that LCTD's price experiences larger fluctuations and is considered to be riskier than LCTU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTD	LCTU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.39%	3.28%	+1.11%
Volatility (6M) Calculated over the trailing 6-month period	12.93%	10.17%	+2.76%
Volatility (1Y) Calculated over the trailing 1-year period	15.14%	13.02%	+2.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.22%	17.22%	-1.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.05%	16.92%	-0.87%

LCTD vs. LCTU - Expense Ratio Comparison

LCTD has a 0.20% expense ratio, which is higher than LCTU's 0.15% 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. LCTU - Dividend Comparison

LCTD's dividend yield for the trailing twelve months is around 3.32%, more than LCTU's 0.96% yield.

Position	TTM	2025	2024	2023	2022	2021
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	3.32%	3.61%	3.74%	3.16%	3.52%	2.20%
LCTU BlackRock U.S. Carbon Transition Readiness ETF	0.96%	1.02%	1.27%	1.46%	1.63%	2.20%

Frequently Asked Questions

Can I hold both LCTD and LCTU in my portfolio?

LCTD and LCTU have a correlation of 0.78, 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 LCTU?

LCTD has higher volatility (4.39%) compared to LCTU (3.28%). In terms of maximum drawdown, LCTD dropped -29.82% vs LCTU's -25.93%.

Which ETF is better, LCTD or LCTU?

On 5-year performance, LCTU leads with 11.42% vs 7.67% for LCTD. On fees, LCTU is cheaper at 0.15% per year. On volatility, LCTU has been the lower-risk option at 3.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCTD or LCTU?

Over the 5-year period, LCTU has performed better with a 11.42% return vs 7.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTD or LCTU?

LCTU is cheaper with a 0.15% expense ratio, compared with 0.20% for LCTD.

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

LCTD has the higher dividend yield at 3.32%, compared with 0.96% for LCTU.

What is the main difference between LCTD and LCTU?

LCTD is categorized as Alternative Energy Equities, while LCTU is ESG. Their fees differ too: 0.20% for LCTD and 0.15% for LCTU.

Which has better risk-adjusted returns?

LCTD currently has the higher Sharpe Ratio (1.45 vs 1.36), 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.