LCTU vs. ESGV

Last updated Jun 4, 2026

LCTU (BlackRock U.S. Carbon Transition Readiness ETF) and ESGV (Vanguard ESG U.S. Stock ETF) are both exchange-traded funds - LCTU is a ESG fund actively managed by BlackRock, while ESGV is a Large Cap Blend Equities fund tracking the FTSE US All Cap Choice Index. LCTU is actively managed, while ESGV is passively managed. Over the past 5 years, LCTU returned 12.37%/yr vs 12.64%/yr for ESGV. With a 0.99 correlation, they move nearly in lockstep. LCTU charges 0.15%/yr vs 0.09%/yr for ESGV.

Performance

LCTU vs. ESGV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and Vanguard ESG U.S. Stock ETF (ESGV). 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 ESGV's 10.74% return.

LCTU

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

ESGV

• 1D: -0.88%
• 1M: 6.08%
• YTD: 10.74%
• 6M: 10.73%
• 1Y: 28.04%
• 3Y*: 22.27%
• 5Y*: 12.64%
• 10Y*: —

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

LCTU vs. ESGV - 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%
ESGV Vanguard ESG U.S. Stock ETF	10.74%	16.48%	24.69%	30.79%	-24.04%	16.26%

Correlation

The correlation between LCTU and ESGV is 0.99 - 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	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Apr 9, 2021	0.99

The correlation between LCTU and ESGV has been stable across timeframes, ranging from 0.99 to 0.99 - a consistent structural relationship.

LCTU vs. ESGV - Sectors Allocation Comparison

Sectors	LCTU	ESGV
Technology	34.6%	39.5%
Financial Services	12.1%	12.3%
Communication Services	10.3%	13.0%
Consumer Cyclical	10.3%	12.2%
Healthcare	8.8%	9.8%
Industrials	8.7%	4.5%
Consumer Defensive	4.9%	3.9%
Energy	3.5%	0.1%
Real Estate	2.5%	2.8%
Utilities	2.5%	0.2%
Basic Materials	1.9%	1.9%

Return for Risk

LCTU vs. ESGV — 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

ESGV

ESGV Risk / Return Rank: 58
ESGV Sharpe Ratio Rank: 61
ESGV Sortino Ratio Rank: 60
ESGV Omega Ratio Rank: 61
ESGV Calmar Ratio Rank: 48
ESGV Martin Ratio Rank: 58

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. ESGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and Vanguard ESG U.S. Stock ETF (ESGV). 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	ESGV	Difference
Sharpe ratio: Return per unit of total volatility	2.10	2.11	-0.01
Sortino ratio: Return per unit of downside risk	2.89	2.89	0.00
Omega ratio: Gain probability vs. loss probability	1.38	1.38	0.00
Calmar ratio: Return relative to maximum drawdown	2.75	2.43	+0.33
Martin ratio: Return relative to average drawdown	12.25	10.42	+1.83
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. ESGV - Sharpe Ratio Comparison

The current LCTU Sharpe Ratio is 2.10, which is comparable to the ESGV Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of LCTU and ESGV, 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	ESGV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.10	2.11	-0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.69	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.72	+0.04

Drawdowns

LCTU vs. ESGV - Drawdown Comparison

The maximum LCTU drawdown since its inception was -25.93%, smaller than the maximum ESGV drawdown of -33.66%. Use the drawdown chart below to compare losses from any high point for LCTU and ESGV.

Drawdown Indicators

	LCTU	ESGV	Difference
Max Drawdown Largest peak-to-trough decline	-25.93%	-33.66%	+7.73%
Max Drawdown (1Y) Largest decline over 1 year	-9.38%	-11.60%	+2.22%
Max Drawdown (3Y) Largest decline over 3 years	-19.83%	-20.41%	+0.58%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-28.81%	+2.88%
Current Drawdown Current decline from peak	-0.74%	-0.88%	+0.14%
Average Drawdown Average peak-to-trough decline	-6.32%	-6.43%	+0.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.11%	2.70%	-0.59%

Volatility

LCTU vs. ESGV - Volatility Comparison

The current volatility for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) is 3.04%, while Vanguard ESG U.S. Stock ETF (ESGV) has a volatility of 3.37%. This indicates that LCTU experiences smaller price fluctuations and is considered to be less risky than ESGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTU	ESGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.04%	3.37%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	9.36%	10.18%	-0.82%
Volatility (1Y) Calculated over the trailing 1-year period	12.30%	13.35%	-1.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.15%	18.35%	-1.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.02%	20.58%	-3.56%

LCTU vs. ESGV - Expense Ratio Comparison

LCTU has a 0.15% expense ratio, which is higher than ESGV's 0.09% 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

LCTU vs. ESGV - Dividend Comparison

LCTU's dividend yield for the trailing twelve months is around 0.93%, more than ESGV's 0.85% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
ESGV Vanguard ESG U.S. Stock ETF	0.85%	0.91%	1.04%	1.16%	1.42%	0.95%	1.11%	1.27%	0.28%
LCTU BlackRock U.S. Carbon Transition Readiness ETF	0.93%	1.02%	1.27%	1.46%	1.63%	2.20%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LCTU and ESGV in my portfolio?

With a correlation of 0.99, LCTU and ESGV 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 ESGV?

ESGV has higher volatility (3.37%) compared to LCTU (3.04%). In terms of maximum drawdown, LCTU dropped -25.93% vs ESGV's -33.66%.

Which ETF is better, LCTU or ESGV?

On 5-year performance, ESGV leads with 12.64% vs 12.37% for LCTU. On fees, ESGV is cheaper at 0.09% per year. 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 ESGV?

Over the 5-year period, ESGV has performed better with a 12.64% return vs 12.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTU or ESGV?

ESGV is cheaper with a 0.09% expense ratio, compared with 0.15% for LCTU.

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

LCTU has the higher dividend yield at 0.93%, compared with 0.85% for ESGV.

What is the main difference between LCTU and ESGV?

LCTU is categorized as ESG, while ESGV is Large Cap Blend Equities. They also come from different issuers: BlackRock and Vanguard. Their fees differ too: 0.15% for LCTU and 0.09% for ESGV.

Which has better risk-adjusted returns?

ESGV currently has the higher Sharpe Ratio (2.11 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.