LCTU vs. EMCS

Last updated Jun 4, 2026

LCTU (BlackRock U.S. Carbon Transition Readiness ETF) and EMCS (Xtrackers MSCI Emerging Markets Climate Selection ETF) are both exchange-traded funds - LCTU is a ESG fund actively managed by BlackRock, while EMCS is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Climate Select Index. LCTU is actively managed, while EMCS is passively managed. Over the past 5 years, LCTU returned 12.37%/yr vs 7.95%/yr for EMCS. A 0.64 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.

Performance

LCTU vs. EMCS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and Xtrackers MSCI Emerging Markets Climate Selection ETF (EMCS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCTU achieves a 9.04% return, which is significantly lower than EMCS's 33.83% return.

LCTU

• 1D: -0.74%
• 1M: 5.23%
• YTD: 9.04%
• 6M: 9.21%
• 1Y: 25.72%
• 3Y*: 21.17%
• 5Y*: 12.37%
• 10Y*: —

EMCS

• 1D: -1.20%
• 1M: 13.15%
• YTD: 33.83%
• 6M: 37.78%
• 1Y: 64.32%
• 3Y*: 27.65%
• 5Y*: 7.95%
• 10Y*: —

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

LCTU vs. EMCS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LCTU BlackRock U.S. Carbon Transition Readiness ETF	9.04%	16.96%	24.00%	25.38%	-20.02%	17.49%
EMCS Xtrackers MSCI Emerging Markets Climate Selection ETF	33.83%	38.71%	10.12%	5.68%	-23.58%	-8.54%

Correlation

The correlation between LCTU and EMCS is 0.70, 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	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (All Time) Calculated using the full available price history since Apr 9, 2021	0.64

The correlation between LCTU and EMCS has been stable across timeframes, ranging from 0.64 to 0.70 - a consistent structural relationship.

LCTU vs. EMCS - Sectors Allocation Comparison

Sectors	LCTU	EMCS
Technology	34.6%	44.5%
Financial Services	12.1%	29.4%
Communication Services	10.3%	8.4%
Consumer Cyclical	10.3%	9.1%
Healthcare	8.8%	0.0%
Industrials	8.7%	2.5%
Consumer Defensive	4.9%	0.0%
Energy	3.5%	1.6%
Real Estate	2.5%	1.0%
Utilities	2.5%	0.8%
Basic Materials	1.9%	2.6%

Return for Risk

LCTU vs. EMCS — Risk / Return Rank

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

LCTU

LCTU Risk / Return Rank: 61
LCTU Sharpe Ratio Rank: 62
LCTU Sortino Ratio Rank: 61
LCTU Omega Ratio Rank: 62
LCTU Calmar Ratio Rank: 55
LCTU Martin Ratio Rank: 67

EMCS

EMCS Risk / Return Rank: 85
EMCS Sharpe Ratio Rank: 87
EMCS Sortino Ratio Rank: 83
EMCS Omega Ratio Rank: 85
EMCS Calmar Ratio Rank: 84
EMCS Martin Ratio Rank: 85

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. EMCS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and Xtrackers MSCI Emerging Markets Climate Selection ETF (EMCS). 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.

	LCTU	EMCS	Difference
Sharpe ratio: Return per unit of total volatility	2.10	2.89	-0.79
Sortino ratio: Return per unit of downside risk	2.89	3.70	-0.81
Omega ratio: Gain probability vs. loss probability	1.38	1.52	-0.14
Calmar ratio: Return relative to maximum drawdown	2.75	4.51	-1.76
Martin ratio: Return relative to average drawdown	12.25	17.47	-5.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LCTU vs. EMCS - Sharpe Ratio Comparison

The current LCTU Sharpe Ratio is 2.10, which is comparable to the EMCS Sharpe Ratio of 2.89. The chart below compares the historical Sharpe Ratios of LCTU and EMCS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LCTU	EMCS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.10	2.89	-0.79
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.39	+0.34
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.55	+0.21

Drawdowns

LCTU vs. EMCS - Drawdown Comparison

The maximum LCTU drawdown since its inception was -25.93%, smaller than the maximum EMCS drawdown of -44.86%. Use the drawdown chart below to compare losses from any high point for LCTU and EMCS.

Drawdown Indicators

	LCTU	EMCS	Difference
Max Drawdown Largest peak-to-trough decline	-25.93%	-44.86%	+18.93%
Max Drawdown (1Y) Largest decline over 1 year	-9.38%	-14.32%	+4.94%
Max Drawdown (3Y) Largest decline over 3 years	-19.83%	-16.73%	-3.10%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-42.06%	+16.13%
Current Drawdown Current decline from peak	-0.74%	-1.20%	+0.46%
Average Drawdown Average peak-to-trough decline	-6.32%	-16.61%	+10.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.11%	3.69%	-1.58%

Volatility

LCTU vs. EMCS - Volatility Comparison

The current volatility for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) is 3.04%, while Xtrackers MSCI Emerging Markets Climate Selection ETF (EMCS) has a volatility of 9.86%. This indicates that LCTU experiences smaller price fluctuations and is considered to be less risky than EMCS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTU	EMCS	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.04%	9.86%	-6.82%
Volatility (6M) Calculated over the trailing 6-month period	9.36%	19.42%	-10.06%
Volatility (1Y) Calculated over the trailing 1-year period	12.30%	22.37%	-10.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.15%	20.62%	-3.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.02%	21.65%	-4.63%

LCTU vs. EMCS - Expense Ratio Comparison

Both LCTU and EMCS have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

LCTU vs. EMCS - Dividend Comparison

LCTU's dividend yield for the trailing twelve months is around 0.93%, less than EMCS's 1.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
EMCS Xtrackers MSCI Emerging Markets Climate Selection ETF	1.24%	1.66%	0.67%	3.07%	2.26%	1.46%	1.40%	3.56%
LCTU BlackRock U.S. Carbon Transition Readiness ETF	0.93%	1.02%	1.27%	1.46%	1.63%	2.20%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LCTU and EMCS in my portfolio?

LCTU and EMCS have a correlation of 0.70, 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 EMCS?

EMCS has higher volatility (9.86%) compared to LCTU (3.04%). In terms of maximum drawdown, LCTU dropped -25.93% vs EMCS's -44.86%.

Which ETF is better, LCTU or EMCS?

On 5-year performance, LCTU leads with 12.37% vs 7.95% for EMCS. Both ETFs have the same 0.15% expense ratio. On volatility, LCTU has been the lower-risk option at 3.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCTU or EMCS?

Over the 5-year period, LCTU has performed better with a 12.37% return vs 7.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTU or EMCS?

LCTU and EMCS have the same expense ratio: 0.15% per year.

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

EMCS has the higher dividend yield at 1.24%, compared with 0.93% for LCTU.

What is the main difference between LCTU and EMCS?

LCTU is categorized as ESG, while EMCS is Emerging Markets Equities. They also come from different issuers: BlackRock and Xtrackers.

Which has better risk-adjusted returns?

EMCS currently has the higher Sharpe Ratio (2.89 vs 2.10), 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.