LCTU vs. RLY
LCTU (BlackRock U.S. Carbon Transition Readiness ETF) and RLY (State Street Multi-Asset Real Return ETF) are both exchange-traded funds - LCTU is a ESG fund actively managed by BlackRock, while RLY is a Hedge Fund fund tracking the Bloomberg U.S. Government Inflation-Linked Bond Index. LCTU is actively managed, while RLY is passively managed. Over the past 5 years, LCTU returned 12.02%/yr vs 10.49%/yr for RLY. A 0.53 correlation means they provide meaningful diversification when combined. LCTU charges 0.15%/yr vs 0.50%/yr for RLY.
Performance
LCTU vs. RLY - Performance Comparison
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Returns By Period
In the year-to-date period, LCTU achieves a 9.64% return, which is significantly lower than RLY's 13.53% return.
LCTU
- 1D
- -0.41%
- 1M
- 0.99%
- 6M
- 8.15%
- YTD
- 9.64%
- 1Y
- 20.56%
- 3Y*
- 19.06%
- 5Y*
- 12.02%
- 10Y*
- —
RLY
- 1D
- -0.45%
- 1M
- -0.73%
- 6M
- 8.32%
- YTD
- 13.53%
- 1Y
- 24.48%
- 3Y*
- 12.78%
- 5Y*
- 10.49%
- 10Y*
- 7.92%
LCTU vs. RLY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
LCTU BlackRock U.S. Carbon Transition Readiness ETF | 9.64% | 16.96% | 24.00% | 25.38% | -20.02% | 17.74% |
RLY State Street Multi-Asset Real Return ETF | 13.53% | 20.26% | 2.53% | 2.56% | 7.86% | 12.34% |
Correlation
The correlation between LCTU and RLY is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021 | 0.53 |
Over the past year, the correlation between LCTU and RLY has dropped to 0.32 - well below their long-term average of 0.53, suggesting their price drivers have been diverging.
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Return for Risk
LCTU vs. RLY — Risk / Return Rank
LCTU
RLY
LCTU vs. RLY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and State Street Multi-Asset Real Return ETF (RLY). 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 | RLY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.72 | ||
| Sortino ratioReturn per unit of downside risk | -0.95 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.43 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 2.20 | 3.26 | -1.06 |
| Martin ratioReturn relative to average drawdown | 9.38 | 11.77 | -2.39 |
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Drawdowns
LCTU vs. RLY - Drawdown Comparison
The maximum LCTU drawdown since its inception was -25.93%, smaller than the maximum RLY drawdown of -37.75%. Use the drawdown chart below to compare losses from any high point for LCTU and RLY.
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Drawdown Indicators
| LCTU | RLY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -25.93% | -37.75% | +11.82% |
Max Drawdown (1Y)Largest decline over 1 year | -9.38% | -7.54% | -1.84% |
Max Drawdown (3Y)Largest decline over 3 years | -19.83% | -10.08% | -9.75% |
Max Drawdown (5Y)Largest decline over 5 years | -25.93% | -18.94% | -6.99% |
Max Drawdown (10Y)Largest decline over 10 years | — | -34.17% | — |
Current DrawdownCurrent decline from peak | -0.41% | -4.63% | +4.22% |
Average DrawdownAverage peak-to-trough decline | -6.21% | -9.42% | +3.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.20% | 2.09% | +0.11% |
Volatility
LCTU vs. RLY - Volatility Comparison
BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and State Street Multi-Asset Real Return ETF (RLY) have volatilities of 3.00% and 3.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LCTU | RLY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.00% | 3.08% | -0.08% |
Volatility (6M)Calculated over the trailing 6-month period | 10.15% | 8.48% | +1.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.76% | 10.52% | +2.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.23% | 13.54% | +3.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.95% | 13.78% | +3.17% |
LCTU vs. RLY - Expense Ratio Comparison
LCTU has a 0.15% expense ratio, which is lower than RLY's 0.50% expense ratio.
Dividends
LCTU vs. RLY - Dividend Comparison
LCTU's dividend yield for the trailing twelve months is around 0.95%, less than RLY's 3.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LCTU BlackRock U.S. Carbon Transition Readiness ETF | 0.95% | 1.02% | 1.27% | 1.46% | 1.63% | 2.20% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
RLY State Street Multi-Asset Real Return ETF | 3.12% | 3.24% | 3.31% | 3.71% | 5.66% | 12.15% | 2.16% | 3.45% | 2.76% | 1.85% | 2.07% | 1.80% |
Frequently Asked Questions
LCTU and RLY have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
RLY has higher volatility (3.08%) compared to LCTU (3.00%). In terms of maximum drawdown, LCTU dropped -25.93% vs RLY's -37.75%.
On 5-year performance, LCTU leads with 12.02% vs 10.49% for RLY. On fees, LCTU is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, LCTU has performed better with a 12.02% return vs 10.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LCTU is cheaper with a 0.15% expense ratio, compared with 0.50% for RLY.
RLY has the higher dividend yield at 3.12%, compared with 0.95% for LCTU.
LCTU is categorized as ESG, while RLY is Hedge Fund. They also come from different issuers: BlackRock and State Street. Their fees differ too: 0.15% for LCTU and 0.50% for RLY.
RLY currently has the higher Sharpe Ratio (2.34 vs 1.62), 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.
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