LCTD vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LCTD offers more diversification with 346 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: LCTD

Side-by-Side Comparison

MetricLCTDSCHDWinner
Expense Ratio0.22%0.06%
AUM$282M$103.7B
Dividend Yield3.39%3.31%
Holdings367104
YTD Return+11.72%+26.21%
1Y Return+20.77%+29.99%
3Y Return (annualized)+17.08%+15.73%
5Y Return (annualized)+7.94%+9.67%
Volatility (annualized)15.3%13.6%
Max Drawdown-29.8%-33.4%
Fund FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionApr 6, 2021Oct 20, 2011

LCTD vs SCHD Performance

iShares World ex US Carbon Transition Readiness Aware Active ETF (LCTD) 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 LCTD returned +20.77% while SCHD returned +29.99%. Year to date, LCTD is up 11.72% versus a gain of 26.21% for SCHD.

Over three years, LCTD compounded at +17.08% per year against +15.73% for SCHD; over five years the annualized figures are +7.94% and +9.67% respectively. Across the full 5-year window we track, SCHD has the edge at +11.50% annualized vs +8.59%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LCTD has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.6% 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 -29.8% for LCTD 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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

LCTD charges 0.22% per year while SCHD charges 0.06%. On a $10,000 position that is $22 vs $6 annually, a gap of $16 per year that compounds over a long holding period. On income, LCTD currently yields 3.39% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

LCTD and SCHD share 0 holdings out of 446 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, LCTD or SCHD?

LCTD has an expense ratio of 0.22% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, LCTD or SCHD?

Over the past year LCTD returned +20.77% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), LCTD annualized +8.59% vs +11.50% for SCHD. Past performance does not guarantee future results.

Which is riskier, LCTD or SCHD?

LCTD has been the more volatile fund at 15.3% annualized versus 13.6% for SCHD. Worst drawdown: LCTD -29.8% vs SCHD -33.4%.

Should I hold both LCTD and SCHD?

LCTD and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LCTD and SCHD?

LCTD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 446 unique securities.

Which pays a higher dividend, LCTD or SCHD?

LCTD yields 3.39% while SCHD yields 3.31%, so LCTD currently pays the higher dividend yield.

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