LCTU vs SCHD
LCTU vs SCHD
iShares US Carbon Transition Readiness Aware Active ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LCTU offers more diversification with 314 holdings.
Side-by-Side Comparison
| Metric | LCTU | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $1.2B | $103.7B | |
| Dividend Yield | 0.96% | 3.31% | |
| Holdings | 319 | 104 | |
| YTD Return | +8.63% | +22.69% | |
| 1Y Return | +17.60% | +30.94% | |
| 3Y Return (annualized) | +18.17% | +14.20% | |
| 5Y Return (annualized) | +11.47% | +9.59% | |
| Volatility (annualized) | 15.8% | 13.7% | |
| Max Drawdown | -25.9% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2021 | Oct 20, 2011 |
LCTU vs SCHD Performance
iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year LCTU returned +17.60% while SCHD returned +30.94%. Year to date, LCTU is up 8.63% versus a gain of 22.69% for SCHD.
Over three years, LCTU compounded at +18.17% per year against +14.20% for SCHD; over five years the annualized figures are +11.47% and +9.59% respectively. Across the full 5-year window we track, LCTU has the edge at +12.36% annualized vs +11.31%. 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 13.7% for SCHD. 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 -33.4% for SCHD. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LCTU charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, LCTU currently yields 0.96% against 3.31% for SCHD.
Holdings Overlap
LCTU and SCHD share 31 holdings out of 383 unique holdings combined, representing a 7.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in LCTU | Weight in SCHD | Difference |
|---|---|---|---|
| UNH | 0.65% | 4.54% | 3.89% |
| HD | 0.65% | 4.16% | 3.51% |
| AMGN | 0.52% | 4.25% | 3.73% |
| ABT | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
| MRK | Pro | Pro | Pro |
| CVX | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| COP | Pro | Pro | Pro |
See all 10 holdings LCTU shares with SCHD 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 SCHD?
LCTU has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, LCTU or SCHD?
Over the past year LCTU returned +17.60% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), LCTU annualized +12.36% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, LCTU or SCHD?
LCTU has been the more volatile fund at 15.8% annualized versus 13.7% for SCHD. Worst drawdown: LCTU -25.9% vs SCHD -33.4%.
Should I hold both LCTU and SCHD?
LCTU and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCTU and SCHD?
LCTU and SCHD share 31 common holdings with a 7.1% weight overlap. Combined, they hold 383 unique securities.
Which pays a higher dividend, LCTU or SCHD?
LCTU yields 0.96% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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