IVV vs LCTU

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricIVVLCTUWinner
Expense Ratio0.03%0.15%
AUM$865.2B$1.2B
Dividend Yield1.09%0.96%
Holdings508319
YTD Return+9.93%+8.63%
1Y Return+19.59%+17.60%
3Y Return (annualized)+19.41%+18.17%
5Y Return (annualized)+12.89%+11.47%
Volatility (annualized)15.1%15.8%
Max Drawdown-56.5%-25.9%
Fund FamilyiShares by BlackRock (US)iShares by BlackRock (US)
CategoryEquityEquity
InceptionMay 15, 2000Apr 6, 2021

IVV vs LCTU Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +19.59% while LCTU returned +17.60%. Year to date, IVV is up 9.93% versus a gain of 8.63% for LCTU.

Over three years, IVV compounded at +19.41% per year against +18.17% for LCTU; over five years the annualized figures are +12.89% and +11.47% respectively. Across the full 5-year window we track, LCTU has the edge at +12.36% annualized vs +6.91%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LCTU has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -56.5% for IVV and -25.9% for LCTU. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

IVV charges 0.03% per year while LCTU charges 0.15%. On a $10,000 position that is $3 vs $15 annually, a gap of $12 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 0.96% for LCTU.

Holdings Overlap

68.7%overlap

IVV and LCTU share 235 holdings out of 584 unique holdings combined, representing a 68.7% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in IVVWeight in LCTUDifference
NVDA7.76%7.08%0.68%
AAPL7.44%7.22%0.22%
MSFT4.57%3.54%1.03%
AMZNProProPro
GOOGLProProPro
AVGOProProPro
GOOGProProPro
METAProProPro
TSLAProProPro
MUProProPro
See all 10 holdings IVV shares with LCTU
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, IVV or LCTU?

IVV has an expense ratio of 0.03% while LCTU charges 0.15%. IVV is the cheaper option. On a $10,000 investment, that is $12 per year of difference.

Which performed better, IVV or LCTU?

Over the past year IVV returned +19.59% vs +17.60% for LCTU, so IVV leads on 1-year performance. Over the longest common window we track (5 years), IVV annualized +6.91% vs +12.36% for LCTU. Past performance does not guarantee future results.

Which is riskier, IVV or LCTU?

LCTU has been the more volatile fund at 15.8% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs LCTU -25.9%.

Should I hold both IVV and LCTU?

IVV and LCTU have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between IVV and LCTU?

IVV and LCTU share 235 common holdings with a 68.7% weight overlap. Combined, they hold 584 unique securities.

Which pays a higher dividend, IVV or LCTU?

IVV yields 1.09% while LCTU yields 0.96%, so IVV currently pays the higher dividend yield.

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