LCTU vs VOO

LCTU vs VOO

Which is better, LCTU or VOO?

Nearly the same fund. VOO costs less.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 1.00. LCTU is less concentrated, with 34.3% of the fund in its ten largest positions against 36.4%.

Lower Fees: VOOHigher Returns: VOOLess Concentrated: LCTU

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

MetricLCTUVOO
Expense Ratio0.15%0.03%Best
AUM$1.2B$997.4B
Dividend Yield0.93%1.04%
Holdings319509
YTD Return+11.30%+12.50%Best
1Y Return+15.87%+17.58%Best
3Y Return (annualized)+20.10%+21.27%Best
5Y Return (annualized)+11.56%+12.95%Best
Volatility (annualized)15.6%15.3%Best
Max Drawdown-25.9%-24.5%Best
$10,000 over 5 years$17,280$18,384Best
Top 10 Weight34.3%Best36.4%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionApr 6, 2021Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Apr 8, 2021 to Sep 11, 2026 (5.4 years).

LCTU vs VOO 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 VOO Performance

iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year LCTU returned +15.87% while VOO returned +17.58%. Year to date, LCTU is up 11.30% versus a gain of 12.50% for VOO.

Over three years, LCTU compounded at +20.10% per year against +21.27% for VOO; over five years the annualized figures are +11.56% and +12.95% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LCTU has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 15.3% for VOO. 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 -24.5% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 1.00. 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 VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, LCTU currently yields 0.93% against 1.04% for VOO.

Holdings Overlap

LCTU already in VOO93.7%
VOO already in LCTU82.2%

93.7% of LCTU's money is in holdings VOO also owns. 82.2% of VOO's money is in holdings LCTU also owns.

Most of LCTU is already inside VOO. Owning both mostly buys the same companies twice.

234 positions in common, counted across the 325 positions we hold weights for in LCTU and 505 in VOO, against full books of 319 and 509.

What only one of them owns

Our book lists 261 positions for VOO that do not appear in our book for LCTU (17.2% of the fund), and 68 for LCTU that do not appear in VOO (5.1%).

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

StockWeight in LCTUWeight in VOODifference
NVDANvidia Corp.7.81%7.51%0.30%
AAPLApple, Inc6.88%6.59%0.29%
MSFTMicrosoft Corp 4.100 Feb 06 374.26%4.30%0.04%
AMZNAmazon.Com Inc3.15%3.62%0.47%
GOOGLAlphabet A Usd 0.0012.72%3.25%0.53%
AVGOBroadcom Inc2.47%2.77%0.30%
GOOGAlphabet Inc2.10%2.59%0.49%
METAMeta Platforms, Inc.1.92%1.92%0.00%
MUMicron Technology, Inc.1.36%2.02%0.66%
TSLATesla Inc1.29%1.84%0.55%

93.7% of LCTU is already inside VOO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

LCTUVOO

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Frequently Asked Questions

Which is cheaper, LCTU or VOO?

LCTU has an expense ratio of 0.15% while VOO charges 0.03%. VOO is the cheaper option, by $12 a year on a $10,000 investment.

Which performed better, LCTU or VOO?

Over the past year LCTU returned +15.87% vs +17.58% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LCTU or VOO?

LCTU has been the more volatile fund at 15.6% annualized versus 15.3% for VOO. Worst drawdown: LCTU -25.9% vs VOO -24.5%.

Should I hold both LCTU and VOO?

LCTU and VOO have a monthly-return correlation of 1.00, 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 VOO?

93.7% of LCTU's money is in holdings VOO also owns. 82.2% of VOO's is in holdings LCTU also owns. They hold 234 positions in common, counted across the 325 positions we hold weights for in LCTU and 505 in VOO.

Which pays a higher dividend, LCTU or VOO?

LCTU yields 0.93% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.

Is VOO better than LCTU?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 1.00. LCTU is less concentrated, with 34.3% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.