SMOG vs. LCTD

Last updated Jun 4, 2026

SMOG (VanEck Low Carbon Energy ETF) and LCTD (BlackRock World ex U.S. Carbon Transition Readiness ETF) are both Alternative Energy Equities funds. SMOG is passively managed, while LCTD is actively managed. Over the past 5 years, SMOG returned 1.76%/yr vs 6.77%/yr for LCTD. A 0.70 correlation means they provide meaningful diversification when combined. SMOG charges 0.61%/yr vs 0.20%/yr for LCTD.

Performance

SMOG vs. LCTD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Low Carbon Energy ETF (SMOG) and BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMOG achieves a 18.16% return, which is significantly higher than LCTD's 6.33% return.

SMOG

• 1D: -1.20%
• 1M: 0.08%
• YTD: 18.16%
• 6M: 17.43%
• 1Y: 42.14%
• 3Y*: 10.86%
• 5Y*: 1.76%
• 10Y*: 12.70%

LCTD

• 1D: -0.76%
• 1M: 1.69%
• YTD: 6.33%
• 6M: 8.97%
• 1Y: 19.28%
• 3Y*: 14.96%
• 5Y*: 6.77%
• 10Y*: —

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

SMOG vs. LCTD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SMOG VanEck Low Carbon Energy ETF	18.16%	33.36%	-9.33%	1.42%	-29.92%	3.12%
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	6.33%	30.42%	3.14%	17.10%	-16.16%	4.36%

Correlation

The correlation between SMOG and LCTD is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (All Time) Calculated using the full available price history since Apr 9, 2021	0.70

The correlation between SMOG and LCTD has been stable across timeframes, ranging from 0.65 to 0.71 - a consistent structural relationship.

SMOG vs. LCTD - Sectors Allocation Comparison

Sectors	SMOG	LCTD
Utilities	33.2%	4.0%
Industrials	28.1%	19.5%
Consumer Cyclical	21.7%	8.4%
Technology	8.4%	9.1%
Energy	6.6%	5.8%
Basic Materials	1.2%	5.8%
Financial Services	0.6%	26.7%
Communication Services	-	3.5%
Consumer Defensive	-	6.0%
Healthcare	-	9.3%
Real Estate	-	1.9%

Return for Risk

SMOG vs. LCTD — Risk / Return Rank

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

SMOG

SMOG Risk / Return Rank: 66
SMOG Sharpe Ratio Rank: 62
SMOG Sortino Ratio Rank: 56
SMOG Omega Ratio Rank: 56
SMOG Calmar Ratio Rank: 86
SMOG Martin Ratio Rank: 73

LCTD

LCTD Risk / Return Rank: 37
LCTD Sharpe Ratio Rank: 37
LCTD Sortino Ratio Rank: 36
LCTD Omega Ratio Rank: 36
LCTD Calmar Ratio Rank: 36
LCTD Martin Ratio Rank: 40

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.

SMOG vs. LCTD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Low Carbon Energy ETF (SMOG) 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.

	SMOG	LCTD	Difference
Sharpe ratio Return per unit of total volatility	2.07	1.33	+0.74
Sortino ratio Return per unit of downside risk	2.69	1.92	+0.77
Omega ratio Gain probability vs. loss probability	1.35	1.24	+0.11
Calmar ratio Return relative to maximum drawdown	4.80	1.77	+3.03
Martin ratio Return relative to average drawdown	13.62	6.39	+7.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMOG vs. LCTD - Sharpe Ratio Comparison

The current SMOG Sharpe Ratio is 2.07, which is higher than the LCTD Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of SMOG and LCTD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SMOG	LCTD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.07	1.33	+0.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	0.42	-0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.07	0.48	-0.41

Drawdowns

SMOG vs. LCTD - Drawdown Comparison

The maximum SMOG drawdown since its inception was -84.39%, which is greater than LCTD's maximum drawdown of -29.82%. Use the drawdown chart below to compare losses from any high point for SMOG and LCTD.

Drawdown Indicators

	SMOG	LCTD	Difference
Max Drawdown Largest peak-to-trough decline	-84.39%	-29.82%	-54.57%
Max Drawdown (1Y) Largest decline over 1 year	-8.82%	-10.92%	+2.10%
Max Drawdown (3Y) Largest decline over 3 years	-28.72%	-13.59%	-15.13%
Max Drawdown (5Y) Largest decline over 5 years	-47.86%	-29.82%	-18.04%
Max Drawdown (10Y) Largest decline over 10 years	-51.10%	—	—
Current Drawdown Current decline from peak	-14.61%	-3.23%	-11.38%
Average Drawdown Average peak-to-trough decline	-52.47%	-6.79%	-45.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	3.03%	+0.07%

Volatility

SMOG vs. LCTD - Volatility Comparison

VanEck Low Carbon Energy ETF (SMOG) has a higher volatility of 7.43% compared to BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) at 4.31%. This indicates that SMOG'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.

Volatility by Period

	SMOG	LCTD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.43%	4.31%	+3.12%
Volatility (6M) Calculated over the trailing 6-month period	15.46%	11.99%	+3.47%
Volatility (1Y) Calculated over the trailing 1-year period	20.49%	14.55%	+5.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.12%	16.14%	+8.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.73%	16.06%	+9.67%

SMOG vs. LCTD - Expense Ratio Comparison

SMOG has a 0.61% expense ratio, which is higher than LCTD's 0.20% expense ratio.

Dividends

SMOG vs. LCTD - Dividend Comparison

SMOG's dividend yield for the trailing twelve months is around 1.33%, less than LCTD's 3.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LCTD BlackRock World ex U.S. Carbon Transition Readiness ETF	3.40%	3.61%	3.74%	3.16%	3.52%	2.20%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SMOG VanEck Low Carbon Energy ETF	1.33%	1.57%	1.64%	1.58%	1.32%	0.44%	0.06%	0.00%	0.62%	1.25%	2.12%	0.56%

Frequently Asked Questions

Can I hold both SMOG and LCTD in my portfolio?

SMOG and LCTD have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMOG or LCTD?

SMOG has higher volatility (7.43%) compared to LCTD (4.31%). In terms of maximum drawdown, SMOG dropped -84.39% vs LCTD's -29.82%.

Which ETF is better, SMOG or LCTD?

On 5-year performance, LCTD leads with 6.77% vs 1.76% for SMOG. On fees, LCTD is cheaper at 0.20% per year. On volatility, LCTD has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMOG or LCTD?

Over the 5-year period, LCTD has performed better with a 6.77% return vs 1.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMOG or LCTD?

LCTD is cheaper with a 0.20% expense ratio, compared with 0.61% for SMOG.

Which ETF pays a higher dividend yield, SMOG or LCTD?

LCTD has the higher dividend yield at 3.40%, compared with 1.33% for SMOG.

What is the main difference between SMOG and LCTD?

They also come from different issuers: VanEck and BlackRock. Their fees differ too: 0.61% for SMOG and 0.20% for LCTD.

Which has better risk-adjusted returns?

SMOG currently has the higher Sharpe Ratio (2.07 vs 1.33), 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.