LCTU vs QQQ
iShares US Carbon Transition Readiness Aware Active ETF vs Invesco QQQ Trust, Series 1
Which is better, LCTU or QQQ?
Large Cap Blend against Large Cap Growth.
LCTU has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. LCTU is less concentrated, with 34.3% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | LCTU | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $1.2B | $483.5B |
| Dividend Yield | 0.93% | 0.44% |
| Holdings | 319 | 107 |
| YTD Return | +11.30% | +16.87%Best |
| 1Y Return | +15.87% | +22.98%Best |
| 3Y Return (annualized) | +20.10% | +24.98%Best |
| 5Y Return (annualized) | +11.56% | +14.39%Best |
| Volatility (annualized) | 15.6%Best | 20.4% |
| Max Drawdown | -25.9%Best | -35.1% |
| $10,000 over 5 years | $17,280 | $19,586Best |
| Top 10 Weight | 34.3%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Apr 6, 2021 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Apr 8, 2021 to Sep 11, 2026 (5.4 years).
LCTU vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.4 years both funds cover.
LCTU vs QQQ Performance
iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year LCTU returned +15.87% while QQQ returned +22.98%. Year to date, LCTU is up 11.30% versus a gain of 16.87% for QQQ.
Over three years, LCTU compounded at +20.10% per year against +24.98% for QQQ; over five years the annualized figures are +11.56% and +14.39% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 15.6% for LCTU. 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
LCTU charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, LCTU currently yields 0.93% against 0.44% for QQQ.
Holdings Overlap
50.4% of LCTU's money is in holdings QQQ also owns. 86.5% of QQQ's money is in holdings LCTU also owns.
Most of QQQ is already inside LCTU. Owning both mostly buys the same companies twice.
62 positions in common, counted across the 325 positions we hold weights for in LCTU and 102 in QQQ, against full books of 319 and 107.
What only one of them owns
Our book lists 33 positions for QQQ that do not appear in our book for LCTU (10.6% of the fund), and 240 for LCTU that do not appear in QQQ (48.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in LCTU | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.81% | 8.44% | 0.63% |
| AAPLApple, Inc | 6.88% | 7.27% | 0.39% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.26% | 5.76% | 1.50% |
| AMZNAmazon.Com Inc | 3.15% | 4.67% | 1.52% |
| GOOGLAlphabet A Usd 0.001 | 2.72% | 3.36% | 0.64% |
| MUMicron Technology, Inc. | 1.36% | 4.43% | 3.07% |
| AVGOBroadcom Inc | 2.47% | 3.16% | 0.69% |
| GOOGAlphabet Inc | 2.10% | 3.13% | 1.03% |
| METAMeta Platforms, Inc. | 1.92% | 2.78% | 0.86% |
| AMDAdvanced Micro Devices Inc. | 1.21% | 3.45% | 2.24% |
86.5% of QQQ is already inside LCTU.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, LCTU or QQQ?
LCTU has an expense ratio of 0.15% while QQQ charges 0.18%. LCTU is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, LCTU or QQQ?
Over the past year LCTU returned +15.87% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LCTU or QQQ?
QQQ has been the more volatile fund at 20.4% annualized versus 15.6% for LCTU. Worst drawdown: LCTU -25.9% vs QQQ -35.1%.
Should I hold both LCTU and QQQ?
LCTU and QQQ have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between LCTU and QQQ?
86.5% of QQQ's money is in holdings LCTU also owns. 86.5% of QQQ's is in holdings LCTU also owns. They hold 62 positions in common, counted across the 325 positions we hold weights for in LCTU and 102 in QQQ.
Which pays a higher dividend, LCTU or QQQ?
LCTU yields 0.93% while QQQ yields 0.44%, so LCTU currently pays the higher dividend yield.
Is QQQ better than LCTU?
LCTU has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. LCTU is less concentrated, with 34.3% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.