LCTU vs. DSI

Last updated Jun 16, 2026

LCTU (BlackRock U.S. Carbon Transition Readiness ETF) and DSI (iShares MSCI KLD 400 Social ETF) are both exchange-traded funds - LCTU is a ESG fund actively managed by BlackRock, while DSI is a Large Cap Growth Equities fund tracking the MSCI KLD 400 Social Index. LCTU is actively managed, while DSI is passively managed. Over the past 5 years, LCTU returned 12.39%/yr vs 13.33%/yr for DSI. With a 0.97 correlation, they move nearly in lockstep. LCTU charges 0.15%/yr vs 0.25%/yr for DSI.

Performance

LCTU vs. DSI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and iShares MSCI KLD 400 Social ETF (DSI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCTU achieves a 9.23% return, which is significantly lower than DSI's 11.83% return.

LCTU

• 1D: 1.73%
• 1M: 2.67%
• YTD: 9.23%
• 6M: 9.49%
• 1Y: 25.98%
• 3Y*: 19.96%
• 5Y*: 12.39%
• 10Y*: —

DSI

• 1D: 1.78%
• 1M: 2.10%
• YTD: 11.83%
• 6M: 12.35%
• 1Y: 29.36%
• 3Y*: 20.81%
• 5Y*: 13.33%
• 10Y*: 15.60%

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

LCTU vs. DSI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LCTU BlackRock U.S. Carbon Transition Readiness ETF	9.23%	16.96%	24.00%	25.38%	-20.02%	17.74%
DSI iShares MSCI KLD 400 Social ETF	11.83%	18.03%	22.38%	28.51%	-21.71%	19.64%

Correlation

The correlation between LCTU and DSI is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.98

The correlation between LCTU and DSI has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

LCTU vs. DSI - Sectors Allocation Comparison

Sectors	LCTU	DSI
Technology	37.8%	43.1%
Financial Services	11.3%	10.1%
Consumer Cyclical	10.3%	8.0%
Communication Services	9.9%	12.8%
Healthcare	8.6%	7.0%
Industrials	8.3%	8.0%
Consumer Defensive	4.5%	4.0%
Energy	3.0%	1.5%
Utilities	2.3%	0.9%
Real Estate	2.2%	2.6%
Basic Materials	1.9%	2.2%

Return for Risk

LCTU vs. DSI — Risk / Return Rank

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

LCTU

LCTU Risk / Return Rank: 66
LCTU Sharpe Ratio Rank: 67
LCTU Sortino Ratio Rank: 65
LCTU Omega Ratio Rank: 66
LCTU Calmar Ratio Rank: 60
LCTU Martin Ratio Rank: 70

DSI

DSI Risk / Return Rank: 68
DSI Sharpe Ratio Rank: 74
DSI Sortino Ratio Rank: 72
DSI Omega Ratio Rank: 73
DSI Calmar Ratio Rank: 58
DSI Martin Ratio Rank: 66

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.

LCTU vs. DSI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and iShares MSCI KLD 400 Social ETF (DSI). 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	DSI	Difference
Sharpe ratio: Return per unit of total volatility	2.05	2.17	-0.12
Sortino ratio: Return per unit of downside risk	2.80	2.93	-0.13
Omega ratio: Gain probability vs. loss probability	1.37	1.39	-0.02
Calmar ratio: Return relative to maximum drawdown	2.78	2.67	+0.11
Martin ratio: Return relative to average drawdown	12.10	11.05	+1.05

LCTU vs. DSI - Sharpe Ratio Comparison

The current LCTU Sharpe Ratio is 2.05, which is comparable to the DSI Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of LCTU and DSI, 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. DSI - Drawdown Comparison

The maximum LCTU drawdown since its inception was -25.93%, smaller than the maximum DSI drawdown of -54.23%. Use the drawdown chart below to compare losses from any high point for LCTU and DSI.

Drawdown Indicators

	LCTU	DSI	Difference
Max Drawdown Largest peak-to-trough decline	-25.93%	-54.23%	+28.30%
Max Drawdown (1Y) Largest decline over 1 year	-9.38%	-11.05%	+1.67%
Max Drawdown (3Y) Largest decline over 3 years	-19.83%	-20.58%	+0.75%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-28.36%	+2.43%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.10%	—
Current Drawdown Current decline from peak	-0.57%	-0.51%	-0.06%
Average Drawdown Average peak-to-trough decline	-6.29%	-7.51%	+1.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.15%	2.66%	-0.51%

Volatility

LCTU vs. DSI - Volatility Comparison

The current volatility for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) is 4.49%, while iShares MSCI KLD 400 Social ETF (DSI) has a volatility of 5.40%. This indicates that LCTU experiences smaller price fluctuations and is considered to be less risky than DSI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTU	DSI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.49%	5.40%	-0.91%
Volatility (6M) Calculated over the trailing 6-month period	10.05%	10.95%	-0.90%
Volatility (1Y) Calculated over the trailing 1-year period	12.76%	13.65%	-0.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.23%	18.02%	-0.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.04%	18.76%	-1.72%

LCTU vs. DSI - Expense Ratio Comparison

LCTU has a 0.15% expense ratio, which is lower than DSI's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LCTU vs. DSI - Dividend Comparison

LCTU's dividend yield for the trailing twelve months is around 1.15%, more than DSI's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DSI iShares MSCI KLD 400 Social ETF	1.04%	0.92%	1.03%	1.19%	1.39%	0.99%	1.22%	1.40%	1.63%	1.28%	1.51%	1.46%
LCTU BlackRock U.S. Carbon Transition Readiness ETF	1.15%	1.02%	1.27%	1.46%	1.63%	2.20%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LCTU and DSI in my portfolio?

With a correlation of 0.95, LCTU and DSI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, LCTU or DSI?

DSI has higher volatility (5.40%) compared to LCTU (4.49%). In terms of maximum drawdown, LCTU dropped -25.93% vs DSI's -54.23%.

Which ETF is better, LCTU or DSI?

On 5-year performance, DSI leads with 13.33% vs 12.39% for LCTU. On fees, LCTU is cheaper at 0.15% per year. On volatility, LCTU has been the lower-risk option at 4.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCTU or DSI?

Over the 5-year period, DSI has performed better with a 13.33% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTU or DSI?

LCTU is cheaper with a 0.15% expense ratio, compared with 0.25% for DSI.

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

LCTU has the higher dividend yield at 1.15%, compared with 1.04% for DSI.

What is the main difference between LCTU and DSI?

LCTU is categorized as ESG, while DSI is Large Cap Growth Equities. They also come from different issuers: BlackRock and iShares. Their fees differ too: 0.15% for LCTU and 0.25% for DSI.

Which has better risk-adjusted returns?

DSI currently has the higher Sharpe Ratio (2.17 vs 2.05), 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.