LCTU vs. SPY

Last updated Jun 24, 2026

LCTU (BlackRock U.S. Carbon Transition Readiness ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - LCTU is a ESG fund actively managed by BlackRock, while SPY is a S&P 500 fund tracking the S&P 500 Index. LCTU is actively managed, while SPY is passively managed. Over the past 5 years, LCTU returned 11.64%/yr vs 13.05%/yr for SPY. With a 0.99 correlation, they move nearly in lockstep. LCTU charges 0.15%/yr vs 0.09%/yr for SPY.

Performance

LCTU vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCTU achieves a 6.71% return, which is significantly lower than SPY's 8.15% return.

LCTU

• 1D: -1.15%
• 1M: -0.76%
• YTD: 6.71%
• 6M: 5.72%
• 1Y: 22.01%
• 3Y*: 19.65%
• 5Y*: 11.64%
• 10Y*: —

SPY

• 1D: -1.45%
• 1M: -1.36%
• YTD: 8.15%
• 6M: 7.20%
• 1Y: 23.59%
• 3Y*: 20.68%
• 5Y*: 13.05%
• 10Y*: 15.53%

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

LCTU vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LCTU BlackRock U.S. Carbon Transition Readiness ETF	6.71%	16.96%	24.00%	25.38%	-20.02%	17.74%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	26.18%	-18.18%	17.99%

Correlation

The correlation between LCTU and SPY 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 8, 2021	0.99

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

LCTU vs. SPY - Sectors Allocation Comparison

Sectors	LCTU	SPY
Technology	37.8%	39.0%
Financial Services	11.3%	11.1%
Consumer Cyclical	10.3%	9.9%
Communication Services	9.9%	10.6%
Healthcare	8.6%	8.3%
Industrials	8.3%	7.8%
Consumer Defensive	4.5%	4.5%
Energy	3.0%	3.1%
Utilities	2.3%	2.1%
Real Estate	2.2%	1.8%
Basic Materials	1.9%	1.7%

Return for Risk

LCTU vs. SPY — Risk / Return Rank

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

LCTU

LCTU Risk / Return Rank: 54
LCTU Sharpe Ratio Rank: 55
LCTU Sortino Ratio Rank: 53
LCTU Omega Ratio Rank: 53
LCTU Calmar Ratio Rank: 51
LCTU Martin Ratio Rank: 61

SPY

SPY Risk / Return Rank: 59
SPY Sharpe Ratio Rank: 58
SPY Sortino Ratio Rank: 56
SPY Omega Ratio Rank: 57
SPY Calmar Ratio Rank: 56
SPY Martin Ratio Rank: 67

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. SPY - 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 SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.73	1.90	-0.17
Sortino ratio: Return per unit of downside risk	2.39	2.58	-0.20
Omega ratio: Gain probability vs. loss probability	1.31	1.34	-0.03
Calmar ratio: Return relative to maximum drawdown	2.36	2.67	-0.31
Martin ratio: Return relative to average drawdown	10.18	11.92	-1.74

LCTU vs. SPY - Sharpe Ratio Comparison

The current LCTU Sharpe Ratio is 1.73, which is comparable to the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of LCTU and SPY, 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. SPY - Drawdown Comparison

The maximum LCTU drawdown since its inception was -25.93%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for LCTU and SPY.

Drawdown Indicators

	LCTU	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-25.93%	-55.19%	+29.26%
Max Drawdown (1Y) Largest decline over 1 year	-9.38%	-8.88%	-0.50%
Max Drawdown (3Y) Largest decline over 3 years	-19.83%	-18.76%	-1.07%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-24.50%	-1.43%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-2.85%	-3.17%	+0.32%
Average Drawdown Average peak-to-trough decline	-6.27%	-9.04%	+2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.17%	1.98%	+0.19%

Volatility

LCTU vs. SPY - Volatility Comparison

The current volatility for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) is 4.59%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.87%. This indicates that LCTU experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTU	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.59%	4.87%	-0.28%
Volatility (6M) Calculated over the trailing 6-month period	10.10%	9.85%	+0.25%
Volatility (1Y) Calculated over the trailing 1-year period	12.82%	12.50%	+0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.23%	17.15%	+0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.03%	17.95%	-0.92%

LCTU vs. SPY - Expense Ratio Comparison

LCTU has a 0.15% expense ratio, which is higher than SPY'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. SPY - Dividend Comparison

LCTU's dividend yield for the trailing twelve months is around 0.98%, less than SPY's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LCTU BlackRock U.S. Carbon Transition Readiness ETF	0.98%	1.02%	1.27%	1.46%	1.63%	2.20%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both LCTU and SPY in my portfolio?

With a correlation of 0.99, LCTU and SPY 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 SPY?

SPY has higher volatility (4.87%) compared to LCTU (4.59%). In terms of maximum drawdown, LCTU dropped -25.93% vs SPY's -55.19%.

Which ETF is better, LCTU or SPY?

On 5-year performance, SPY leads with 13.05% vs 11.64% for LCTU. On fees, SPY is cheaper at 0.09% per year. On volatility, LCTU has been the lower-risk option at 4.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCTU or SPY?

Over the 5-year period, SPY has performed better with a 13.05% return vs 11.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTU or SPY?

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

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

SPY has the higher dividend yield at 1.03%, compared with 0.98% for LCTU.

What is the main difference between LCTU and SPY?

LCTU is categorized as ESG, while SPY is S&P 500. They also come from different issuers: BlackRock and State Street. Their fees differ too: 0.15% for LCTU and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.90 vs 1.73), 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.