LCTU vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricLCTUSPYWinner
Expense Ratio0.15%0.09%
AUM$1.2B$789.1B
Dividend Yield0.96%1.01%
Holdings319505
YTD Return+8.63%+9.93%
1Y Return+17.60%+19.50%
3Y Return (annualized)+18.17%+19.33%
5Y Return (annualized)+11.47%+12.82%
Volatility (annualized)15.8%15.3%
Max Drawdown-25.9%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionApr 6, 2021Jan 22, 1993

LCTU vs SPY Performance

iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LCTU returned +17.60% while SPY returned +19.50%. Year to date, LCTU is up 8.63% versus a gain of 9.93% for SPY.

Over three years, LCTU compounded at +18.17% per year against +19.33% for SPY; over five years the annualized figures are +11.47% and +12.82% respectively. Across the full 5-year window we track, LCTU has the edge at +12.36% annualized vs +8.74%. 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 15.3% for SPY. 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 -56.5% for SPY. 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

LCTU charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, LCTU currently yields 0.96% against 1.01% for SPY.

Holdings Overlap

69.7%overlap

LCTU and SPY share 235 holdings out of 582 unique holdings combined, representing a 69.7% weight overlap.

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

Top Shared Holdings

StockWeight in LCTUWeight in SPYDifference
NVDA7.08%7.31%0.23%
AAPL7.22%7.09%0.13%
MSFT3.54%4.43%0.89%
AMZNProProPro
GOOGLProProPro
AVGOProProPro
GOOGProProPro
METAProProPro
TSLAProProPro
MUProProPro
See all 10 holdings LCTU shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, LCTU or SPY?

LCTU has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, LCTU or SPY?

Over the past year LCTU returned +17.60% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), LCTU annualized +12.36% vs +8.74% for SPY. Past performance does not guarantee future results.

Which is riskier, LCTU or SPY?

LCTU has been the more volatile fund at 15.8% annualized versus 15.3% for SPY. Worst drawdown: LCTU -25.9% vs SPY -56.5%.

Should I hold both LCTU and SPY?

LCTU and SPY 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 LCTU and SPY?

LCTU and SPY share 235 common holdings with a 69.7% weight overlap. Combined, they hold 582 unique securities.

Which pays a higher dividend, LCTU or SPY?

LCTU yields 0.96% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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