LCTD vs SPY
iShares World ex US Carbon Transition Readiness Aware Active ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | LCTD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.09% | |
| AUM | $282M | $789.1B | |
| Dividend Yield | 3.39% | 1.01% | |
| Holdings | 367 | 505 | |
| YTD Return | +11.22% | +13.39% | |
| 1Y Return | +22.13% | +22.52% | |
| 3Y Return (annualized) | +16.93% | +21.36% | |
| 5Y Return (annualized) | +7.91% | +13.19% | |
| Volatility (annualized) | 15.3% | 15.3% | |
| Max Drawdown | -29.8% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2021 | Jan 22, 1993 |
LCTD vs SPY Performance
iShares World ex US Carbon Transition Readiness Aware Active ETF (LCTD) 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 LCTD returned +22.13% while SPY returned +22.52%. Year to date, LCTD is up 11.22% versus a gain of 13.39% for SPY.
Over three years, LCTD compounded at +16.93% per year against +21.36% for SPY; over five years the annualized figures are +7.91% and +13.19% respectively. Across the full 5-year window we track, SPY has the edge at +8.84% annualized vs +8.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.3% for LCTD. 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 -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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LCTD charges 0.22% per year while SPY charges 0.09%. On a $10,000 position that is $22 vs $9 annually, a gap of $13 per year that compounds over a long holding period. On income, LCTD currently yields 3.39% against 1.01% for SPY.
Holdings Overlap
LCTD and SPY share 3 holdings out of 846 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCTD or SPY?
LCTD has an expense ratio of 0.22% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, LCTD or SPY?
Over the past year LCTD returned +22.13% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), LCTD annualized +8.51% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, LCTD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 15.3% for LCTD. Worst drawdown: LCTD -29.8% vs SPY -56.5%.
Should I hold both LCTD and SPY?
LCTD and SPY 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 LCTD and SPY?
LCTD and SPY share 3 common holdings with a 0.1% weight overlap. Combined, they hold 846 unique securities.
Which pays a higher dividend, LCTD or SPY?
LCTD yields 3.39% while SPY yields 1.01%, so LCTD currently pays the higher dividend yield.
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