LCTU vs QQQ
LCTU vs QQQ
iShares US Carbon Transition Readiness Aware Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
LCTU has a lower expense ratio. QQQ delivered stronger 1-year returns. LCTU offers more diversification with 314 holdings.
Side-by-Side Comparison
| Metric | LCTU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $1.2B | $455.8B | |
| Dividend Yield | 0.96% | 0.41% | |
| Holdings | 319 | 108 | |
| YTD Return | +10.11% | +14.45% | |
| 1Y Return | +19.39% | +24.70% | |
| 3Y Return (annualized) | +19.60% | +24.19% | |
| 5Y Return (annualized) | +11.60% | +14.49% | |
| Volatility (annualized) | 15.7% | 30.6% | |
| Max Drawdown | -25.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2021 | Mar 10, 1999 |
LCTU vs QQQ Performance
iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LCTU returned +19.39% while QQQ returned +24.70%. Year to date, LCTU is up 10.11% versus a gain of 14.45% for QQQ.
Over three years, LCTU compounded at +19.60% per year against +24.19% for QQQ; over five years the annualized figures are +11.60% and +14.49% respectively. Across the full 5-year window we track, QQQ has the edge at +12.98% annualized vs +12.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 15.7% for LCTU. 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 -25.9% for LCTU and -83.0% for QQQ. 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
LCTU charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, LCTU currently yields 0.96% against 0.41% for QQQ.
Holdings Overlap
LCTU and QQQ share 62 holdings out of 355 unique holdings combined, representing a 49.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in LCTU | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 7.08% | 7.88% | 0.80% |
| AAPL | 7.22% | 7.46% | 0.24% |
| MSFT | 3.54% | 4.65% | 1.11% |
| AMZN | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
See all 10 holdings LCTU shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, LCTU or QQQ?
LCTU has an expense ratio of 0.15% while QQQ charges 0.18%. LCTU is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, LCTU or QQQ?
Over the past year LCTU returned +19.39% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), LCTU annualized +12.63% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, LCTU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for LCTU. Worst drawdown: LCTU -25.9% vs QQQ -83.0%.
Should I hold both LCTU and QQQ?
LCTU and QQQ have a monthly-return correlation of 0.92, 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 LCTU and QQQ?
LCTU and QQQ share 62 common holdings with a 49.8% weight overlap. Combined, they hold 355 unique securities.
Which pays a higher dividend, LCTU or QQQ?
LCTU yields 0.96% while QQQ yields 0.41%, so LCTU currently pays the higher dividend yield.
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