LCTU vs. USXF

Last updated Jun 16, 2026

LCTU (BlackRock U.S. Carbon Transition Readiness ETF) and USXF (iShares ESG Advanced MSCI USA ETF) are both exchange-traded funds - LCTU is a ESG fund actively managed by BlackRock, while USXF is a Large Cap Growth Equities fund tracking the MSCI USA Choice ESG Screened Index. LCTU is actively managed, while USXF is passively managed. Over the past 5 years, LCTU returned 12.39%/yr vs 15.64%/yr for USXF. Their correlation of 0.94 suggests significant overlap in exposure. LCTU charges 0.15%/yr vs 0.10%/yr for USXF.

Performance

LCTU vs. USXF - Performance Comparison

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

Returns By Period

In the year-to-date period, LCTU achieves a 9.23% return, which is significantly lower than USXF's 20.37% return.

LCTU

• 1D: 1.73%
• 1M: 2.67%
• YTD: 9.23%
• 6M: 9.49%
• 1Y: 25.98%
• 3Y*: 19.96%
• 5Y*: 12.39%
• 10Y*: —

USXF

• 1D: 2.44%
• 1M: 5.10%
• YTD: 20.37%
• 6M: 21.61%
• 1Y: 36.09%
• 3Y*: 25.87%
• 5Y*: 15.64%
• 10Y*: —

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

LCTU vs. USXF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
LCTU BlackRock U.S. Carbon Transition Readiness ETF	9.23%	16.96%	24.00%	25.38%	-20.02%	17.74%
USXF iShares ESG Advanced MSCI USA ETF	20.37%	16.97%	26.16%	31.65%	-21.20%	16.82%

Correlation

The correlation between LCTU and USXF is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.94

The correlation between LCTU and USXF has been stable across timeframes, ranging from 0.90 to 0.94 - a consistent structural relationship.

LCTU vs. USXF - Sectors Allocation Comparison

Sectors	LCTU	USXF
Technology	37.8%	53.9%
Financial Services	11.3%	15.1%
Consumer Cyclical	10.3%	6.6%
Communication Services	9.9%	2.0%
Healthcare	8.6%	5.7%
Industrials	8.3%	8.0%
Consumer Defensive	4.5%	0.9%
Energy	3.0%	0.1%
Utilities	2.3%	1.1%
Real Estate	2.2%	4.0%
Basic Materials	1.9%	2.3%

Return for Risk

LCTU vs. USXF — Risk / Return Rank

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

LCTU

LCTU Risk / Return Rank: 66
LCTU Sharpe Ratio Rank: 67
LCTU Sortino Ratio Rank: 65
LCTU Omega Ratio Rank: 66
LCTU Calmar Ratio Rank: 60
LCTU Martin Ratio Rank: 70

USXF

USXF Risk / Return Rank: 72
USXF Sharpe Ratio Rank: 72
USXF Sortino Ratio Rank: 66
USXF Omega Ratio Rank: 68
USXF Calmar Ratio Rank: 76
USXF Martin Ratio Rank: 78

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. USXF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) and iShares ESG Advanced MSCI USA ETF (USXF). 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	USXF	Difference
Sharpe ratio: Return per unit of total volatility	2.05	2.10	-0.05
Sortino ratio: Return per unit of downside risk	2.80	2.77	+0.03
Omega ratio: Gain probability vs. loss probability	1.37	1.37	0.00
Calmar ratio: Return relative to maximum drawdown	2.78	3.56	-0.78
Martin ratio: Return relative to average drawdown	12.10	13.71	-1.61

LCTU vs. USXF - Sharpe Ratio Comparison

The current LCTU Sharpe Ratio is 2.05, which is comparable to the USXF Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of LCTU and USXF, 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. USXF - Drawdown Comparison

The maximum LCTU drawdown since its inception was -25.93%, smaller than the maximum USXF drawdown of -29.54%. Use the drawdown chart below to compare losses from any high point for LCTU and USXF.

Drawdown Indicators

	LCTU	USXF	Difference
Max Drawdown Largest peak-to-trough decline	-25.93%	-29.54%	+3.61%
Max Drawdown (1Y) Largest decline over 1 year	-9.38%	-10.19%	+0.81%
Max Drawdown (3Y) Largest decline over 3 years	-19.83%	-20.93%	+1.10%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-29.54%	+3.61%
Current Drawdown Current decline from peak	-0.57%	-0.83%	+0.26%
Average Drawdown Average peak-to-trough decline	-6.29%	-6.40%	+0.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.15%	2.64%	-0.49%

Volatility

LCTU vs. USXF - Volatility Comparison

The current volatility for BlackRock U.S. Carbon Transition Readiness ETF (LCTU) is 4.49%, while iShares ESG Advanced MSCI USA ETF (USXF) has a volatility of 7.98%. This indicates that LCTU experiences smaller price fluctuations and is considered to be less risky than USXF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCTU	USXF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.49%	7.98%	-3.49%
Volatility (6M) Calculated over the trailing 6-month period	10.05%	14.39%	-4.34%
Volatility (1Y) Calculated over the trailing 1-year period	12.76%	17.29%	-4.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.23%	19.76%	-2.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.04%	19.31%	-2.27%

LCTU vs. USXF - Expense Ratio Comparison

LCTU has a 0.15% expense ratio, which is higher than USXF's 0.10% 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. USXF - Dividend Comparison

LCTU's dividend yield for the trailing twelve months is around 1.15%, more than USXF's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
LCTU BlackRock U.S. Carbon Transition Readiness ETF	1.15%	1.02%	1.27%	1.46%	1.63%	2.20%	0.00%
USXF iShares ESG Advanced MSCI USA ETF	0.98%	0.93%	1.00%	1.21%	1.39%	0.86%	0.58%

Frequently Asked Questions

Can I hold both LCTU and USXF in my portfolio?

LCTU and USXF have a correlation of 0.90, 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 USXF?

USXF has higher volatility (7.98%) compared to LCTU (4.49%). In terms of maximum drawdown, LCTU dropped -25.93% vs USXF's -29.54%.

Which ETF is better, LCTU or USXF?

On 5-year performance, USXF leads with 15.64% vs 12.39% for LCTU. On fees, USXF is cheaper at 0.10% per year. On volatility, LCTU has been the lower-risk option at 4.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCTU or USXF?

Over the 5-year period, USXF has performed better with a 15.64% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCTU or USXF?

USXF is cheaper with a 0.10% expense ratio, compared with 0.15% for LCTU.

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

LCTU has the higher dividend yield at 1.15%, compared with 0.98% for USXF.

What is the main difference between LCTU and USXF?

LCTU is categorized as ESG, while USXF is Large Cap Growth Equities. They also come from different issuers: BlackRock and iShares. Their fees differ too: 0.15% for LCTU and 0.10% for USXF.

Which has better risk-adjusted returns?

USXF currently has the higher Sharpe Ratio (2.10 vs 2.05), 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.