LCTU vs. QQQ
Compare and contrast key facts about BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and Invesco QQQ (QQQ).
LCTU and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LCTU is an actively managed fund by Blackrock Financial Management. It was launched on Apr 6, 2021. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LCTU or QQQ.
Key characteristics
| LCTU | QQQ | |
|---|---|---|
| YTD Return | 4.89% | 3.07% |
| 1Y Return | 22.78% | 32.86% |
| 3Y Return (Ann) | 6.55% | 8.34% |
| Sharpe Ratio | 1.80 | 1.95 |
| Daily Std Dev | 11.85% | 16.25% |
| Max Drawdown | -25.92% | -82.98% |
| Current Drawdown | -4.67% | -5.57% |
Correlation
The correlation between LCTU and QQQ is 0.93, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
LCTU vs. QQQ - Performance Comparison
In the year-to-date period, LCTU achieves a 4.89% return, which is significantly higher than QQQ's 3.07% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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LCTU vs. QQQ - Expense Ratio Comparison
LCTU has a 0.15% expense ratio, which is lower than QQQ's 0.20% 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%.
Risk-Adjusted Performance
LCTU vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and Invesco QQQ (QQQ). 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.
Dividends
LCTU vs. QQQ - Dividend Comparison
LCTU's dividend yield for the trailing twelve months is around 1.38%, more than QQQ's 0.63% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LCTU BlackRock U.S. Carbon Transition Readiness ETF | 1.38% | 1.46% | 1.63% | 2.20% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.63% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
LCTU vs. QQQ - Drawdown Comparison
The maximum LCTU drawdown since its inception was -25.92%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for LCTU and QQQ. For additional features, visit the drawdowns tool.
Volatility
LCTU vs. QQQ - Volatility Comparison
The current volatility for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) is 3.87%, while Invesco QQQ (QQQ) has a volatility of 5.42%. This indicates that LCTU experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.