YLDE vs. LCTU

Last updated Jun 24, 2026

YLDE (ClearBridge Dividend Strategy ESG ETF) and LCTU (BlackRock U.S. Carbon Transition Readiness ETF) are both exchange-traded funds - YLDE is a Dividend fund actively managed by Franklin Templeton, while LCTU is a ESG fund actively managed by BlackRock. Both are actively managed. Over the past 5 years, YLDE returned 10.08%/yr vs 11.64%/yr for LCTU. A 0.80 correlation means they provide meaningful diversification when combined. YLDE charges 0.60%/yr vs 0.15%/yr for LCTU.

Performance

YLDE vs. LCTU - Performance Comparison

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

Returns By Period

In the year-to-date period, YLDE achieves a 4.91% return, which is significantly lower than LCTU's 6.71% return.

YLDE

• 1D: 0.06%
• 1M: -0.48%
• YTD: 4.91%
• 6M: 4.69%
• 1Y: 14.35%
• 3Y*: 14.52%
• 5Y*: 10.08%
• 10Y*: —

LCTU

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

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

YLDE vs. LCTU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
YLDE ClearBridge Dividend Strategy ESG ETF	4.91%	13.09%	16.44%	15.69%	-8.56%	14.76%
LCTU BlackRock U.S. Carbon Transition Readiness ETF	6.71%	16.96%	24.00%	25.38%	-20.02%	17.74%

Correlation

The correlation between YLDE and LCTU is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.80

The correlation between YLDE and LCTU shifts across timeframes, from 0.62 (1 year) to 0.80 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

YLDE vs. LCTU — Risk / Return Rank

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

YLDE

YLDE Risk / Return Rank: 45
YLDE Sharpe Ratio Rank: 47
YLDE Sortino Ratio Rank: 46
YLDE Omega Ratio Rank: 44
YLDE Calmar Ratio Rank: 40
YLDE Martin Ratio Rank: 45

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

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.

YLDE vs. LCTU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ClearBridge Dividend Strategy ESG ETF (YLDE) and BlackRock U.S. Carbon Transition Readiness ETF (LCTU). 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.

	YLDE	LCTU	Difference
Sharpe ratio: Return per unit of total volatility	1.54	1.73	-0.19
Sortino ratio: Return per unit of downside risk	2.18	2.39	-0.21
Omega ratio: Gain probability vs. loss probability	1.27	1.31	-0.04
Calmar ratio: Return relative to maximum drawdown	1.90	2.36	-0.46
Martin ratio: Return relative to average drawdown	6.97	10.18	-3.21

YLDE vs. LCTU - Sharpe Ratio Comparison

The current YLDE Sharpe Ratio is 1.54, which is comparable to the LCTU Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of YLDE and LCTU, 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

YLDE vs. LCTU - Drawdown Comparison

The maximum YLDE drawdown since its inception was -33.23%, which is greater than LCTU's maximum drawdown of -25.93%. Use the drawdown chart below to compare losses from any high point for YLDE and LCTU.

Drawdown Indicators

	YLDE	LCTU	Difference
Max Drawdown Largest peak-to-trough decline	-33.23%	-25.93%	-7.30%
Max Drawdown (1Y) Largest decline over 1 year	-7.59%	-9.38%	+1.79%
Max Drawdown (3Y) Largest decline over 3 years	-11.42%	-19.83%	+8.41%
Max Drawdown (5Y) Largest decline over 5 years	-20.22%	-25.93%	+5.71%
Current Drawdown Current decline from peak	-1.76%	-2.85%	+1.09%
Average Drawdown Average peak-to-trough decline	-3.54%	-6.27%	+2.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.06%	2.17%	-0.11%

Volatility

YLDE vs. LCTU - Volatility Comparison

The current volatility for ClearBridge Dividend Strategy ESG ETF (YLDE) is 2.49%, while BlackRock U.S. Carbon Transition Readiness ETF (LCTU) has a volatility of 4.59%. This indicates that YLDE experiences smaller price fluctuations and is considered to be less risky than LCTU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	YLDE	LCTU	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.49%	4.59%	-2.10%
Volatility (6M) Calculated over the trailing 6-month period	6.87%	10.10%	-3.23%
Volatility (1Y) Calculated over the trailing 1-year period	9.39%	12.82%	-3.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.50%	17.23%	-3.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.73%	17.03%	-1.30%

YLDE vs. LCTU - Expense Ratio Comparison

YLDE has a 0.60% expense ratio, which is higher than LCTU's 0.15% expense ratio.

Dividends

YLDE vs. LCTU - Dividend Comparison

YLDE's dividend yield for the trailing twelve months is around 6.98%, more than LCTU's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
YLDE ClearBridge Dividend Strategy ESG ETF	6.98%	5.68%	1.69%	1.64%	1.68%	1.15%	1.46%	1.65%	2.25%	1.31%

Frequently Asked Questions

Can I hold both YLDE and LCTU in my portfolio?

YLDE and LCTU have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, YLDE or LCTU?

LCTU has higher volatility (4.59%) compared to YLDE (2.49%). In terms of maximum drawdown, YLDE dropped -33.23% vs LCTU's -25.93%.

Which ETF is better, YLDE or LCTU?

On 5-year performance, LCTU leads with 11.64% vs 10.08% for YLDE. On fees, LCTU is cheaper at 0.15% per year. On volatility, YLDE has been the lower-risk option at 2.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, YLDE or LCTU?

Over the 5-year period, LCTU has performed better with a 11.64% return vs 10.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, YLDE or LCTU?

LCTU is cheaper with a 0.15% expense ratio, compared with 0.60% for YLDE.

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

YLDE has the higher dividend yield at 6.98%, compared with 0.98% for LCTU.

What is the main difference between YLDE and LCTU?

YLDE is categorized as Dividend, while LCTU is ESG. They also come from different issuers: Franklin Templeton and BlackRock. Their fees differ too: 0.60% for YLDE and 0.15% for LCTU.

Which has better risk-adjusted returns?

LCTU currently has the higher Sharpe Ratio (1.73 vs 1.54), 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.