LCTU vs VYM
iShares US Carbon Transition Readiness Aware Active ETF vs Vanguard High Dividend Yield ETF
Which is better, LCTU or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. LCTU led over 3Y and the full window, VYM over 1Y and 5Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 34.3%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.15% | 0.04%Best |
| AUM | $1.2B | $81.6B |
| Dividend Yield | 0.93% | 2.22% |
| Holdings | 319 | 613 |
| YTD Return | +11.30% | +13.91%Best |
| 1Y Return | +15.87% | +17.57%Best |
| 3Y Return (annualized) | +20.10%Best | +18.12% |
| 5Y Return (annualized) | +11.56% | +12.17%Best |
| Volatility (annualized) | 15.6% | 13.3%Best |
| Max Drawdown | -25.9% | -15.8%Best |
| $10,000 over 5 years | $17,280 | $17,758Best |
| Top 10 Weight | 34.3% | 25.9%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Apr 6, 2021 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Apr 8, 2021 to Sep 11, 2026 (5.4 years).
LCTU vs VYM 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 VYM Performance
iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year LCTU returned +15.87% while VYM returned +17.57%. Year to date, LCTU is up 11.30% versus a gain of 13.91% for VYM.
Over three years, LCTU compounded at +20.10% per year against +18.12% for VYM; over five years the annualized figures are +11.56% and +12.17% 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 13.3% 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 -25.9% for LCTU and -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
LCTU charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, LCTU currently yields 0.93% against 2.22% for VYM.
Holdings Overlap
32.3% of LCTU's money is in holdings VYM also owns. 63.8% of VYM's money is in holdings LCTU also owns.
The two portfolios partly overlap.
131 positions in common, counted across the 325 positions we hold weights for in LCTU and 603 in VYM, against full books of 319 and 613.
What only one of them owns
Our book lists 437 positions for VYM that do not appear in our book for LCTU (33.7% of the fund), and 175 for LCTU that do not appear in VYM (66.5%).
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 VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.47% | 7.29% | 4.82% |
| JPMJpmorgan Chase & Co. | 1.19% | 3.38% | 2.19% |
| XOMExxon Mobil Corp. | 0.88% | 2.36% | 1.48% |
| JNJJohnson & Johnson | 0.68% | 2.54% | 1.86% |
| BACBank Of America Corp. | 1.61% | 1.56% | 0.05% |
| CATCaterpillar, Inc. | 0.77% | 2.01% | 1.24% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.67% | 1.93% | 1.26% |
| ABBVAbbvie Inc. | 0.38% | 1.85% | 1.47% |
| UNHUnitedhealth Group Inc. | 0.63% | 1.56% | 0.93% |
| HDHome Depot Inc/The | 0.69% | 1.46% | 0.77% |
63.8% of VYM 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 VYM?
LCTU has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, LCTU or VYM?
Over the past year LCTU returned +15.87% vs +17.57% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LCTU or VYM?
LCTU has been the more volatile fund at 15.6% annualized versus 13.3% for VYM. Worst drawdown: LCTU -25.9% vs VYM -15.8%.
Should I hold both LCTU and VYM?
LCTU and VYM have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between LCTU and VYM?
63.8% of VYM's money is in holdings LCTU also owns. 63.8% of VYM's is in holdings LCTU also owns. They hold 131 positions in common, counted across the 325 positions we hold weights for in LCTU and 603 in VYM.
Which pays a higher dividend, LCTU or VYM?
LCTU yields 0.93% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than LCTU?
VYM has a lower expense ratio. LCTU led over 3Y and the full window, VYM over 1Y and 5Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 34.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.