LCTD vs VYM
iShares World ex 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 | LCTD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.04% | |
| AUM | $282M | $79.0B | |
| Dividend Yield | 3.39% | 2.86% | |
| Holdings | 367 | 568 | |
| YTD Return | +11.22% | +16.16% | |
| 1Y Return | +22.13% | +26.05% | |
| 3Y Return (annualized) | +16.93% | +18.43% | |
| 5Y Return (annualized) | +7.91% | +12.21% | |
| Volatility (annualized) | 15.3% | 14.6% | |
| Max Drawdown | -29.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2021 | Nov 10, 2006 |
LCTD vs VYM Performance
iShares World ex US Carbon Transition Readiness Aware Active ETF (LCTD) 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 LCTD returned +22.13% while VYM returned +26.05%. Year to date, LCTD is up 11.22% versus a gain of 16.16% for VYM.
Over three years, LCTD compounded at +16.93% per year against +18.43% for VYM; over five years the annualized figures are +7.91% and +12.21% respectively. Across the full 5-year window we track, LCTD has the edge at +8.51% annualized vs +7.09%. 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 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 -29.8% for LCTD 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
LCTD charges 0.22% per year while VYM charges 0.04%. On a $10,000 position that is $22 vs $4 annually, a gap of $18 per year that compounds over a long holding period. On income, LCTD currently yields 3.39% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, LCTD or VYM?
LCTD has an expense ratio of 0.22% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, LCTD or VYM?
Over the past year LCTD returned +22.13% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), LCTD annualized +8.51% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, LCTD or VYM?
LCTD has been the more volatile fund at 15.3% annualized versus 14.6% for VYM. Worst drawdown: LCTD -29.8% vs VYM -58.8%.
Should I hold both LCTD and VYM?
LCTD 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 LCTD and VYM?
LCTD and VYM share 2 common holdings with a 0.2% weight overlap. Combined, they hold 902 unique securities.
Which pays a higher dividend, LCTD or VYM?
LCTD yields 3.39% while VYM yields 2.86%, so LCTD currently pays the higher dividend yield.
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