LCTU vs. BMED

Last updated Aug 4, 2026

LCTU (BlackRock U.S. Carbon Transition Readiness ETF) and BMED (Future Health ETF) are both exchange-traded funds - LCTU is a ESG fund actively managed by BlackRock, while BMED is a Health & Biotech Equities fund actively managed by BlackRock. Both are actively managed. Over the past 5 years, LCTU returned 11.69%/yr vs 0.33%/yr for BMED. Their 0.68 correlation means they have sometimes moved together and sometimes differently. LCTU charges 0.15%/yr vs 0.85%/yr for BMED.

Performance

LCTU vs. BMED - Performance Comparison

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

Returns By Period

In the year-to-date period, LCTU achieves a 10.19% return, which is significantly higher than BMED's 2.13% return.

LCTU

• 1D: 1.37%
• 1M: 1.37%
• 6M: 8.59%
• YTD: 10.19%
• 1Y: 21.22%
• 3Y*: 19.59%
• 5Y*: 11.69%
• 10Y*: —
• ALL TIME*: 12.68%

BMED

• 1D: -0.36%
• 1M: -2.10%
• 6M: -1.11%
• YTD: 2.13%
• 1Y: 25.01%
• 3Y*: 8.90%
• 5Y*: 0.33%
• 10Y*: —
• ALL TIME*: 3.34%

*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)
BMED Future Health ETF	$43.65K	$67.75K	$63.60K
LCTU BlackRock U.S. Carbon Transition Readiness ETF	$1.72M	$15.35M	$7.18M

LCTU vs. BMED - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LCTU BlackRock U.S. Carbon Transition Readiness ETF	10.19%	16.96%	24.00%	25.38%	-20.02%	17.74%
BMED Future Health ETF	2.13%	21.79%	1.55%	5.70%	-19.69%	2.12%

Correlation

The correlation between LCTU and BMED is 0.46, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.46
Correlation (3Y) Balances recent behavior with more history.	0.61
Correlation (5Y) Shows whether the relationship held over a longer period.	0.70
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.68

Over the past year, the correlation between LCTU and BMED has dropped to 0.46 - well below their long-term average of 0.68, suggesting their price drivers have been diverging.

LCTU vs. BMED - Sectors Allocation Comparison

Sectors	LCTU	BMED
Technology	37.2%	-
Financial Services	11.8%	-
Consumer Cyclical	10.0%	-
Communication Services	9.3%	-
Industrials	9.1%	-
Healthcare	9.0%	100.0%
Consumer Defensive	4.4%	1.5%
Energy	2.9%	-
Utilities	2.4%	-
Real Estate	2.2%	-
Basic Materials	1.8%	-

Return for Risk

LCTU vs. BMED — Risk / Return Rank

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

LCTU

LCTU Risk / Return Rank: 66
LCTU Sharpe Ratio Rank: 67
LCTU Sortino Ratio Rank: 66
LCTU Omega Ratio Rank: 65
LCTU Calmar Ratio Rank: 61
LCTU Martin Ratio Rank: 73

BMED

BMED Risk / Return Rank: 55
BMED Sharpe Ratio Rank: 65
BMED Sortino Ratio Rank: 69
BMED Omega Ratio Rank: 60
BMED Calmar Ratio Rank: 45
BMED Martin Ratio Rank: 37

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.

LCTU vs. BMED - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and Future Health ETF (BMED). 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.

	LCTU	BMED	Difference
Sharpe ratio: Return per unit of total volatility	1.64	1.59	+0.05
Sortino ratio: Return per unit of downside risk	2.29	2.37	-0.08
Omega ratio: Gain probability vs. loss probability	1.29	1.27	+0.02
Calmar ratio: Return relative to maximum drawdown	2.27	1.69	+0.58
Martin ratio: Return relative to average drawdown	9.58	3.89	+5.69

LCTU vs. BMED - Sharpe Ratio Comparison

The current LCTU Sharpe Ratio is 1.64, which is comparable to the BMED Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of LCTU and BMED, 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

LCTU vs. BMED - Drawdown Comparison

The maximum LCTU drawdown since its inception was -25.93%, smaller than the maximum BMED drawdown of -36.44%. Use the drawdown chart below to compare losses from any high point for LCTU and BMED.

Drawdown Indicators

	LCTU	BMED	Difference
Max Drawdown Largest peak-to-trough decline	-25.93%	-36.44%	+10.51%
Max Drawdown (1Y) Largest decline over 1 year	-9.38%	-14.85%	+5.47%
Max Drawdown (3Y) Largest decline over 3 years	-19.83%	-20.12%	+0.29%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-33.90%	+7.97%
Current Drawdown Current decline from peak	0.00%	-4.31%	+4.31%
Average Drawdown Average peak-to-trough decline	-6.17%	-18.74%	+12.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	6.44%	-4.22%

Volatility

LCTU vs. BMED - Volatility Comparison

The current volatility for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) is 3.55%, while Future Health ETF (BMED) has a volatility of 4.54%. This indicates that LCTU experiences smaller price fluctuations and is considered to be less risky than BMED based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTU	BMED	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.55%	4.54%	-0.99%
Volatility (6M) Calculated over the trailing 6-month period	10.24%	12.12%	-1.88%
Volatility (1Y) Calculated over the trailing 1-year period	12.99%	15.84%	-2.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.24%	17.56%	-0.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.93%	17.76%	-0.83%

LCTU vs. BMED - Expense Ratio Comparison

LCTU has a 0.15% expense ratio, which is lower than BMED's 0.85% expense ratio.

Dividends

LCTU vs. BMED - Dividend Comparison

LCTU's dividend yield for the trailing twelve months is around 0.95%, more than BMED's 0.26% yield.

Position	TTM	2025	2024	2023	2022	2021
BMED Future Health ETF	0.26%	0.00%	0.00%	0.03%	0.00%	0.00%
LCTU BlackRock U.S. Carbon Transition Readiness ETF	0.95%	1.02%	1.27%	1.46%	1.63%	2.20%

Frequently Asked Questions

Can I hold both LCTU and BMED in my portfolio?

LCTU and BMED have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LCTU or BMED?

BMED has higher volatility (4.54%) compared to LCTU (3.55%). In terms of maximum drawdown, LCTU dropped -25.93% vs BMED's -36.44%.

Which ETF is better, LCTU or BMED?

On 5-year performance, LCTU leads with 11.69% vs 0.33% for BMED. On fees, LCTU is cheaper at 0.15% per year. On volatility, LCTU has been the lower-risk option at 3.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCTU or BMED?

Over the 5-year period, LCTU has performed better with a 11.69% return vs 0.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTU or BMED?

LCTU is cheaper with a 0.15% expense ratio, compared with 0.85% for BMED.

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

LCTU has the higher dividend yield at 0.95%, compared with 0.26% for BMED.

What is the main difference between LCTU and BMED?

LCTU is categorized as ESG, while BMED is Health & Biotech Equities. Their fees differ too: 0.15% for LCTU and 0.85% for BMED.

Which has better risk-adjusted returns?

LCTU currently has the higher Sharpe Ratio (1.64 vs 1.59), 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.