LCTU vs. IVRA

Last updated Jun 25, 2026

LCTU (BlackRock U.S. Carbon Transition Readiness ETF) and IVRA (Invesco Real Assets ESG ETF) are both ESG funds. Both are actively managed. Over the past 5 years, LCTU returned 11.54%/yr vs 7.62%/yr for IVRA. A 0.60 correlation means they provide meaningful diversification when combined. LCTU charges 0.15%/yr vs 0.59%/yr for IVRA.

Performance

LCTU vs. IVRA - Performance Comparison

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

Returns By Period

In the year-to-date period, LCTU achieves a 6.58% return, which is significantly lower than IVRA's 11.70% return.

LCTU

• 1D: -0.13%
• 1M: -0.89%
• YTD: 6.58%
• 6M: 5.24%
• 1Y: 20.43%
• 3Y*: 19.60%
• 5Y*: 11.54%
• 10Y*: —

IVRA

• 1D: 0.00%
• 1M: 0.00%
• YTD: 11.70%
• 6M: 11.36%
• 1Y: 14.88%
• 3Y*: 15.44%
• 5Y*: 7.62%
• 10Y*: —

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

LCTU vs. IVRA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LCTU BlackRock U.S. Carbon Transition Readiness ETF	6.58%	16.96%	24.00%	25.38%	-20.02%	17.74%
IVRA Invesco Real Assets ESG ETF	11.70%	10.20%	13.07%	9.13%	-10.00%	15.82%

Correlation

The correlation between LCTU and IVRA is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.60

Over the past year, the correlation between LCTU and IVRA has dropped to 0.16 - well below their long-term average of 0.60, suggesting their price drivers have been diverging.

LCTU vs. IVRA - Sectors Allocation Comparison

Sectors	LCTU	IVRA
Technology	37.8%	-
Financial Services	11.3%	0.7%
Consumer Cyclical	10.3%	2.6%
Communication Services	9.9%	-
Healthcare	8.6%	-
Industrials	8.3%	-
Consumer Defensive	4.5%	1.7%
Energy	3.0%	23.5%
Utilities	2.3%	10.3%
Real Estate	2.2%	46.8%
Basic Materials	1.9%	14.3%

Return for Risk

LCTU vs. IVRA — Risk / Return Rank

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

LCTU

LCTU Risk / Return Rank: 53
LCTU Sharpe Ratio Rank: 52
LCTU Sortino Ratio Rank: 52
LCTU Omega Ratio Rank: 51
LCTU Calmar Ratio Rank: 50
LCTU Martin Ratio Rank: 60

IVRA

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. IVRA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and Invesco Real Assets ESG ETF (IVRA). 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	IVRA	Difference
Sharpe ratio: Return per unit of total volatility	1.61	1.77	-0.16
Sortino ratio: Return per unit of downside risk	2.23	2.57	-0.33
Omega ratio: Gain probability vs. loss probability	1.29	1.37	-0.08
Calmar ratio: Return relative to maximum drawdown	2.19	3.57	-1.38
Martin ratio: Return relative to average drawdown	9.41	12.38	-2.97

LCTU vs. IVRA - Sharpe Ratio Comparison

The current LCTU Sharpe Ratio is 1.61, which is comparable to the IVRA Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of LCTU and IVRA, 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. IVRA - Drawdown Comparison

The maximum LCTU drawdown since its inception was -25.93%, roughly equal to the maximum IVRA drawdown of -25.99%. Use the drawdown chart below to compare losses from any high point for LCTU and IVRA.

Drawdown Indicators

	LCTU	IVRA	Difference
Max Drawdown Largest peak-to-trough decline	-25.93%	-25.99%	+0.06%
Max Drawdown (1Y) Largest decline over 1 year	-9.38%	-4.60%	-4.78%
Max Drawdown (3Y) Largest decline over 3 years	-19.83%	-15.03%	-4.80%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-25.99%	+0.06%
Current Drawdown Current decline from peak	-2.98%	-0.92%	-2.06%
Average Drawdown Average peak-to-trough decline	-6.27%	-7.25%	+0.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.18%	1.32%	+0.86%

Volatility

LCTU vs. IVRA - Volatility Comparison

BlackRock U.S. Carbon Transition Readiness ETF (LCTU) has a higher volatility of 4.57% compared to Invesco Real Assets ESG ETF (IVRA) at 0.00%. This indicates that LCTU's price experiences larger fluctuations and is considered to be riskier than IVRA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTU	IVRA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.57%	0.00%	+4.57%
Volatility (6M) Calculated over the trailing 6-month period	10.08%	5.37%	+4.71%
Volatility (1Y) Calculated over the trailing 1-year period	12.79%	9.26%	+3.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.23%	16.58%	+0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.03%	16.37%	+0.66%

LCTU vs. IVRA - Expense Ratio Comparison

LCTU has a 0.15% expense ratio, which is lower than IVRA's 0.59% expense ratio.

Dividends

LCTU vs. IVRA - Dividend Comparison

LCTU's dividend yield for the trailing twelve months is around 0.98%, while IVRA has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021
IVRA Invesco Real Assets ESG ETF	16.80%	5.68%	3.71%	2.47%	2.30%	3.01%
LCTU BlackRock U.S. Carbon Transition Readiness ETF	0.98%	1.02%	1.27%	1.46%	1.63%	2.20%

Frequently Asked Questions

Can I hold both LCTU and IVRA in my portfolio?

LCTU and IVRA have a correlation of 0.16, 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 IVRA?

LCTU has higher volatility (4.57%) compared to IVRA (0.00%). In terms of maximum drawdown, LCTU dropped -25.93% vs IVRA's -25.99%.

Which ETF is better, LCTU or IVRA?

On 5-year performance, LCTU leads with 11.54% vs 7.62% for IVRA. On fees, LCTU is cheaper at 0.15% per year. On volatility, IVRA has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCTU or IVRA?

Over the 5-year period, LCTU has performed better with a 11.54% return vs 7.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTU or IVRA?

LCTU is cheaper with a 0.15% expense ratio, compared with 0.59% for IVRA.

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

IVRA has the higher dividend yield at 16.80%, compared with 0.98% for LCTU.

What is the main difference between LCTU and IVRA?

They also come from different issuers: BlackRock and Invesco. Their fees differ too: 0.15% for LCTU and 0.59% for IVRA.

Which has better risk-adjusted returns?

IVRA currently has the higher Sharpe Ratio (1.77 vs 1.61), 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.