LCTU vs VYM
LCTU vs VYM
iShares US Carbon Transition Readiness Aware Active ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | LCTU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $1.2B | $79.0B | |
| Dividend Yield | 0.96% | 2.86% | |
| Holdings | 319 | 568 | |
| YTD Return | +12.11% | +15.45% | |
| 1Y Return | +22.20% | +26.05% | |
| 3Y Return (annualized) | +19.94% | +17.96% | |
| 5Y Return (annualized) | +11.98% | +12.54% | |
| Volatility (annualized) | 15.7% | 14.6% | |
| Max Drawdown | -25.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2021 | Nov 10, 2006 |
LCTU vs VYM Performance
iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LCTU returned +22.20% while VYM returned +26.05%. Year to date, LCTU is up 12.11% versus a gain of 15.45% for VYM.
Over three years, LCTU compounded at +19.94% per year against +17.96% for VYM; over five years the annualized figures are +11.98% and +12.54% respectively. Across the full 5-year window we track, LCTU has the edge at +13.00% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LCTU has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 14.6% for VYM. 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 -58.8% for VYM. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LCTU charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, LCTU currently yields 0.96% against 2.86% for VYM.
Holdings Overlap
LCTU and VYM share 123 holdings out of 749 unique holdings combined, representing a 26.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in LCTU | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 2.30% | 6.47% | 4.17% |
| JPM | 1.18% | 3.36% | 2.18% |
| JNJ | 0.70% | 2.62% | 1.92% |
| WMT | Pro | Pro | Pro |
| XOM | Pro | Pro | Pro |
| BAC | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| HD | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
See all 10 holdings LCTU shares with VYM 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 VYM?
LCTU has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, LCTU or VYM?
Over the past year LCTU returned +22.20% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), LCTU annualized +13.00% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, LCTU or VYM?
LCTU has been the more volatile fund at 15.7% annualized versus 14.6% for VYM. Worst drawdown: LCTU -25.9% vs VYM -58.8%.
Should I hold both LCTU and VYM?
LCTU and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCTU and VYM?
LCTU and VYM share 123 common holdings with a 26.8% weight overlap. Combined, they hold 749 unique securities.
Which pays a higher dividend, LCTU or VYM?
LCTU yields 0.96% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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