SDG vs. LCTD
SDG (iShares MSCI Global Sustainable Development Goals ETF) and LCTD (BlackRock World ex U.S. Carbon Transition Readiness ETF) are both exchange-traded funds - SDG is a Global Equities fund tracking the MSCI ACWI Sustainable Development Index, while LCTD is a Alternative Energy Equities fund actively managed by BlackRock. SDG is passively managed, while LCTD is actively managed. Over the past 5 years, SDG returned 0.09%/yr vs 7.39%/yr for LCTD. Their correlation of 0.82 suggests significant overlap in exposure. SDG charges 0.50%/yr vs 0.20%/yr for LCTD.
Performance
SDG vs. LCTD - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with SDG having a 7.33% return and LCTD slightly higher at 7.66%.
SDG
- 1D
- 0.08%
- 1M
- -0.84%
- YTD
- 7.33%
- 6M
- 7.12%
- 1Y
- 23.73%
- 3Y*
- 7.07%
- 5Y*
- 0.09%
- 10Y*
- 8.80%
LCTD
- 1D
- 0.05%
- 1M
- 0.97%
- YTD
- 7.66%
- 6M
- 7.73%
- 1Y
- 22.12%
- 3Y*
- 15.68%
- 5Y*
- 7.39%
- 10Y*
- —
SDG vs. LCTD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
SDG iShares MSCI Global Sustainable Development Goals ETF | 7.33% | 20.19% | -10.09% | 4.59% | -11.51% | -3.08% |
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF | 7.66% | 30.42% | 3.14% | 17.10% | -16.16% | 4.48% |
Correlation
The correlation between SDG and LCTD is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.77 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.82 |
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021 | 0.82 |
The correlation between SDG and LCTD has been stable across timeframes, ranging from 0.77 to 0.82 - a consistent structural relationship.
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Return for Risk
SDG vs. LCTD — Risk / Return Rank
SDG
LCTD
SDG vs. LCTD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Global Sustainable Development Goals ETF (SDG) and BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD). 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.
| SDG | LCTD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.11 | ||
| Sortino ratioReturn per unit of downside risk | +0.12 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.27 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.75 | 2.03 | +0.71 |
| Martin ratioReturn relative to average drawdown | 9.88 | 7.16 | +2.72 |
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Drawdowns
SDG vs. LCTD - Drawdown Comparison
The maximum SDG drawdown since its inception was -30.35%, roughly equal to the maximum LCTD drawdown of -29.82%. Use the drawdown chart below to compare losses from any high point for SDG and LCTD.
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Drawdown Indicators
| SDG | LCTD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.35% | -29.82% | -0.53% |
Max Drawdown (1Y)Largest decline over 1 year | -8.68% | -10.92% | +2.24% |
Max Drawdown (3Y)Largest decline over 3 years | -22.92% | -13.59% | -9.33% |
Max Drawdown (5Y)Largest decline over 5 years | -30.35% | -29.82% | -0.53% |
Max Drawdown (10Y)Largest decline over 10 years | -30.35% | — | — |
Current DrawdownCurrent decline from peak | -2.95% | -2.02% | -0.93% |
Average DrawdownAverage peak-to-trough decline | -9.63% | -6.76% | -2.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.41% | 3.10% | -0.69% |
Volatility
SDG vs. LCTD - Volatility Comparison
iShares MSCI Global Sustainable Development Goals ETF (SDG) has a higher volatility of 5.68% compared to BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) at 4.38%. This indicates that SDG's price experiences larger fluctuations and is considered to be riskier than LCTD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SDG | LCTD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.68% | 4.38% | +1.30% |
Volatility (6M)Calculated over the trailing 6-month period | 11.87% | 12.51% | -0.64% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.92% | 14.92% | 0.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.76% | 16.20% | -0.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.71% | 16.08% | +0.63% |
SDG vs. LCTD - Expense Ratio Comparison
SDG has a 0.50% expense ratio, which is higher than LCTD's 0.20% expense ratio.
Dividends
SDG vs. LCTD - Dividend Comparison
SDG's dividend yield for the trailing twelve months is around 1.69%, less than LCTD's 3.37% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF | 3.37% | 3.61% | 3.74% | 3.16% | 3.52% | 2.20% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
SDG iShares MSCI Global Sustainable Development Goals ETF | 1.69% | 2.00% | 1.95% | 1.77% | 1.82% | 1.66% | 0.97% | 1.39% | 2.47% | 2.54% | 1.34% |
Frequently Asked Questions
SDG and LCTD have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SDG has higher volatility (5.68%) compared to LCTD (4.38%). In terms of maximum drawdown, SDG dropped -30.35% vs LCTD's -29.82%.
On 5-year performance, LCTD leads with 7.39% vs 0.09% for SDG. On fees, LCTD is cheaper at 0.20% per year. On volatility, LCTD has been the lower-risk option at 4.38%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, LCTD has performed better with a 7.39% return vs 0.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LCTD is cheaper with a 0.20% expense ratio, compared with 0.50% for SDG.
LCTD has the higher dividend yield at 3.37%, compared with 1.69% for SDG.
SDG is categorized as Global Equities, while LCTD is Alternative Energy Equities. They also come from different issuers: iShares and BlackRock. Their fees differ too: 0.50% for SDG and 0.20% for LCTD.
SDG currently has the higher Sharpe Ratio (1.60 vs 1.49), 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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