LCTU vs VOO

Quick Verdict

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

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricLCTUVOOWinner
Expense Ratio0.15%0.03%
AUM$1.2B$979.0B
Dividend Yield0.96%1.09%
Holdings319509
YTD Return+8.63%+9.95%
1Y Return+17.60%+19.58%
3Y Return (annualized)+18.17%+19.43%
5Y Return (annualized)+11.47%+12.89%
Volatility (annualized)15.8%14.2%
Max Drawdown-25.9%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 6, 2021Sep 7, 2010

LCTU vs VOO Performance

iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year LCTU returned +17.60% while VOO returned +19.58%. Year to date, LCTU is up 8.63% versus a gain of 9.95% for VOO.

Over three years, LCTU compounded at +18.17% per year against +19.43% for VOO; over five years the annualized figures are +11.47% and +12.89% respectively. Across the full 5-year window we track, VOO has the edge at +13.35% annualized vs +12.36%. 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 14.2% for VOO. 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, LCTU currently yields 0.96% against 1.09% for VOO.

Holdings Overlap

69.0%overlap

LCTU and VOO share 233 holdings out of 586 unique holdings combined, representing a 69.0% weight overlap.

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

Top Shared Holdings

StockWeight in LCTUWeight in VOODifference
NVDA7.08%7.51%0.43%
AAPL7.22%6.59%0.63%
MSFT3.54%4.30%0.76%
AMZNProProPro
GOOGLProProPro
AVGOProProPro
GOOGProProPro
METAProProPro
TSLAProProPro
MUProProPro
See all 10 holdings LCTU shares with VOO
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, LCTU or VOO?

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

Which performed better, LCTU or VOO?

Over the past year LCTU returned +17.60% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), LCTU annualized +12.36% vs +13.35% for VOO. Past performance does not guarantee future results.

Which is riskier, LCTU or VOO?

LCTU has been the more volatile fund at 15.8% annualized versus 14.2% for VOO. Worst drawdown: LCTU -25.9% vs VOO -34.3%.

Should I hold both LCTU and VOO?

LCTU and VOO 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 VOO?

LCTU and VOO share 233 common holdings with a 69.0% weight overlap. Combined, they hold 586 unique securities.

Which pays a higher dividend, LCTU or VOO?

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

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