LCTU vs VXUS
LCTU vs VXUS
iShares US Carbon Transition Readiness Aware Active ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | LCTU | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.05% | |
| AUM | $1.2B | $156.5B | |
| Dividend Yield | 0.96% | 2.60% | |
| Holdings | 319 | 8,747 | |
| YTD Return | +8.63% | +11.13% | |
| 1Y Return | +17.60% | +27.13% | |
| 3Y Return (annualized) | +18.17% | +17.24% | |
| 5Y Return (annualized) | +11.47% | +8.71% | |
| Volatility (annualized) | 15.8% | 15.1% | |
| Max Drawdown | -25.9% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2021 | Jan 26, 2011 |
LCTU vs VXUS Performance
iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year LCTU returned +17.60% while VXUS returned +27.13%. Year to date, LCTU is up 8.63% versus a gain of 11.13% for VXUS.
Over three years, LCTU compounded at +18.17% per year against +17.24% for VXUS; over five years the annualized figures are +11.47% and +8.71% respectively. Across the full 5-year window we track, LCTU has the edge at +12.36% annualized vs +4.66%. 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 VXUS. 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 -39.9% for VXUS. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LCTU charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, LCTU currently yields 0.96% against 2.60% for VXUS.
Holdings Overlap
LCTU and VXUS share 3 holdings out of 8171 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCTU or VXUS?
LCTU has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, LCTU or VXUS?
Over the past year LCTU returned +17.60% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), LCTU annualized +12.36% vs +4.66% for VXUS. Past performance does not guarantee future results.
Which is riskier, LCTU or VXUS?
LCTU has been the more volatile fund at 15.8% annualized versus 15.1% for VXUS. Worst drawdown: LCTU -25.9% vs VXUS -39.9%.
Should I hold both LCTU and VXUS?
LCTU and VXUS have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCTU and VXUS?
LCTU and VXUS share 3 common holdings with a 0.0% weight overlap. Combined, they hold 8171 unique securities.
Which pays a higher dividend, LCTU or VXUS?
LCTU yields 0.96% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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