LCTD vs. VOO

Last updated Jun 23, 2026

LCTD (BlackRock World ex U.S. Carbon Transition Readiness ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - LCTD is a Alternative Energy Equities fund actively managed by BlackRock, while VOO is a S&P 500 fund tracking the S&P 500 Index. LCTD is actively managed, while VOO is passively managed. Over the past 5 years, LCTD returned 7.39%/yr vs 13.58%/yr for VOO. A 0.77 correlation means they provide meaningful diversification when combined. LCTD charges 0.20%/yr vs 0.03%/yr for VOO.

Performance

LCTD vs. VOO - 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 Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCTD achieves a 7.66% return, which is significantly lower than VOO's 9.75% return.

LCTD

• 1D: 0.05%
• 1M: 0.97%
• YTD: 7.66%
• 6M: 7.73%
• 1Y: 22.12%
• 3Y*: 15.68%
• 5Y*: 7.39%
• 10Y*: —

VOO

• 1D: -0.29%
• 1M: 0.08%
• YTD: 9.75%
• 6M: 9.30%
• 1Y: 26.77%
• 3Y*: 21.36%
• 5Y*: 13.58%
• 10Y*: 15.77%

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

LCTD vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	7.66%	30.42%	3.14%	17.10%	-16.16%	4.48%
VOO Vanguard S&P 500 ETF	9.75%	17.82%	24.98%	26.32%	-18.17%	18.03%

Correlation

The correlation between LCTD and VOO is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.77

The correlation between LCTD and VOO has been stable across timeframes, ranging from 0.73 to 0.78 - a consistent structural relationship.

LCTD vs. VOO - Sectors Allocation Comparison

Sectors	LCTD	VOO
Financial Services	26.7%	10.9%
Industrials	16.9%	7.6%
Technology	11.5%	39.1%
Healthcare	9.3%	8.3%
Consumer Cyclical	7.5%	9.8%
Basic Materials	7.0%	1.7%
Consumer Defensive	5.5%	4.5%
Energy	4.8%	3.2%
Communication Services	4.1%	10.5%
Utilities	3.6%	2.5%
Real Estate	1.5%	1.8%

Return for Risk

LCTD vs. VOO — Risk / Return Rank

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

LCTD

LCTD Risk / Return Rank: 43
LCTD Sharpe Ratio Rank: 44
LCTD Sortino Ratio Rank: 43
LCTD Omega Ratio Rank: 42
LCTD Calmar Ratio Rank: 42
LCTD Martin Ratio Rank: 45

VOO

VOO Risk / Return Rank: 68
VOO Sharpe Ratio Rank: 70
VOO Sortino Ratio Rank: 67
VOO Omega Ratio Rank: 69
VOO Calmar Ratio Rank: 63
VOO Martin Ratio Rank: 74

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. VOO - 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 Vanguard S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	1.49	2.17	-0.68
Sortino ratio: Return per unit of downside risk	2.13	2.93	-0.80
Omega ratio: Gain probability vs. loss probability	1.27	1.39	-0.13
Calmar ratio: Return relative to maximum drawdown	2.03	3.02	-0.99
Martin ratio: Return relative to average drawdown	7.16	13.58	-6.42

LCTD vs. VOO - Sharpe Ratio Comparison

The current LCTD Sharpe Ratio is 1.49, which is lower than the VOO Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of LCTD and VOO, 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. VOO - Drawdown Comparison

The maximum LCTD drawdown since its inception was -29.82%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for LCTD and VOO.

Drawdown Indicators

	LCTD	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-29.82%	-33.99%	+4.17%
Max Drawdown (1Y) Largest decline over 1 year	-10.92%	-8.90%	-2.02%
Max Drawdown (3Y) Largest decline over 3 years	-13.59%	-18.69%	+5.10%
Max Drawdown (5Y) Largest decline over 5 years	-29.82%	-24.52%	-5.30%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.99%	—
Current Drawdown Current decline from peak	-2.02%	-1.74%	-0.28%
Average Drawdown Average peak-to-trough decline	-6.76%	-3.68%	-3.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	1.98%	+1.12%

Volatility

LCTD vs. VOO - Volatility Comparison

BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) and Vanguard S&P 500 ETF (VOO) have volatilities of 4.38% and 4.60%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTD	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.38%	4.60%	-0.22%
Volatility (6M) Calculated over the trailing 6-month period	12.51%	9.73%	+2.78%
Volatility (1Y) Calculated over the trailing 1-year period	14.92%	12.39%	+2.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.20%	16.90%	-0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.08%	18.05%	-1.97%

LCTD vs. VOO - Expense Ratio Comparison

LCTD has a 0.20% expense ratio, which is higher than VOO's 0.03% 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. VOO - Dividend Comparison

LCTD's dividend yield for the trailing twelve months is around 3.37%, more than VOO's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	3.37%	3.61%	3.74%	3.16%	3.52%	2.20%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VOO Vanguard S&P 500 ETF	1.04%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both LCTD and VOO in my portfolio?

LCTD and VOO 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 VOO?

VOO has higher volatility (4.60%) compared to LCTD (4.38%). In terms of maximum drawdown, LCTD dropped -29.82% vs VOO's -33.99%.

Which ETF is better, LCTD or VOO?

On 5-year performance, VOO leads with 13.58% vs 7.39% for LCTD. On fees, VOO is cheaper at 0.03% per year. On volatility, LCTD has been the lower-risk option at 4.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCTD or VOO?

Over the 5-year period, VOO has performed better with a 13.58% return vs 7.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTD or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.20% for LCTD.

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

LCTD has the higher dividend yield at 3.37%, compared with 1.04% for VOO.

What is the main difference between LCTD and VOO?

LCTD is categorized as Alternative Energy Equities, while VOO is S&P 500. They also come from different issuers: BlackRock and Vanguard. Their fees differ too: 0.20% for LCTD and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (2.17 vs 1.49), 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.