At a glance
LCTD charges 0.2% a year, above the 0.17% average of the 7 funds most like it (the 5th cheapest of 8). It has $215.2M in assets, the 8th largest of that group; it paid 3.36% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +10.8% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +19.3% a year. At its worst it fell 29.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 17 months after the low.
The short version
BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) is a BlackRock stock fund that, as its name says, invests in companies outside the United States, with a focus on how ready they are for a shift to a lower-carbon economy. Its 0.20% expense ratio is slightly above the 0.17% average for similar ESG funds, and with $215.2 million in assets it is the smallest fund in that group.
Price history
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LCTD +10.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LCTD price data to Oct 27, 2026 | +8.4% | +10.8% | +19.3% | +7.2% | — | +7.3% |
- Over the year to Oct 27, 2026, LCTD returned +10.8%, 6th of 8 among similar funds.
- Its 5-year annualized return was +7.2%.
- Its worst full calendar year was 2022 (-17.0%); its best was 2025 (+30.4%).
- The deepest fall in its price history was 29.8% (Sep 3, 2021 to Oct 12, 2022), recovered by May 10, 2024.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +8.4% |
| 2025 | +30.4% |
| 2024 | +3.2% |
| 2023 | +17.1% |
| 2022 | -17.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 28.5% over that stretch · deepest drop along the way 29%, back to its old high 16.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9600 | |
| 2025 | $1.9800 | +21.5% |
| 2024 | $1.6300 | +18.1% |
| 2023 | $1.3800 | +43.8% |
| 2022 | $0.9600 |
How it works
The fund's name describes its approach. It owns stocks of companies based outside the United States and favors those judged better prepared for the move away from carbon-heavy energy, often called the "carbon transition." We could not match LCTD to its SEC filings. That means the index it may follow, its largest holdings, how it weights stocks and how often it rebalances are not covered here. BlackRock's own prospectus is the place to check those details.
Mechanically, LCTD is a plain stock ETF. It does not use leverage, it does not bet against the market, and it does not sell options for income. Its shares trade on an exchange throughout the day like a stock, and it has paid dividends twice a year.
Because it holds companies outside the U.S., its value in dollars also moves with exchange rates. When the dollar strengthens against other currencies, foreign stock returns shrink for a U.S. holder. When the dollar weakens, they grow. That currency effect comes on top of how the stocks themselves perform.
What it really costs
- LCTD charges 0.2% a year, versus an average of 0.17% for the similar funds below (5th of 8, cheapest first).
In a retirement portfolio
It adds non-U.S. stocks with a climate-transition tilt, which can spread risk beyond a U.S.-heavy portfolio, though it is still fully exposed to stock market swings.
LCTD launched on April 6, 2021, so it has no record from the 2008 or 2020 crashes. In the 2022 bear market it fell 29% between January 12 and October 12, 2022, and took about 16.8 months to recover, reaching its old high on March 7, 2024. Its deepest drop overall was 29.8%, which took 18.9 months to recover. Its worst calendar year was 2022, at -17%. Someone forced to sell shares or draw income in a year like that would lock in losses. The trailing 12-month yield was 3.36% as of October 27, 2026, paid semiannually, so income arrives in two lumps a year rather than monthly. The 0.20% expense ratio sits a little above the 0.17% peer average. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want non-U.S. stocks chosen with an eye on companies' readiness for a lower-carbon economy.
- Holders comfortable with stock-level swings, such as the 29.8% peak-to-trough drop between 2021 and 2022.
- Investors who value a 3.36% trailing yield (as of October 27, 2026) and don't mind payments only twice a year.
Look elsewhere if
- Cost-focused investors: Vanguard ESG International Stock ETF (VSGX) charges 0.10% versus LCTD's 0.20%.
- Investors who prefer large, heavily traded funds; LCTD's $215.2 million in assets ranks smallest among its similar funds.
- Retirees who need monthly income or cannot ride out a 16.8-month recovery like the one after 2022.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| LCTD this fund | 0.2% | $215.2M | +10.8% | +19.3% |
| ESGU iShares ESG Aware MSCI USA ETF | 0.15% | $12.80B | +11.0% | +21.6% |
| ESGV Vanguard ESG U.S. Stock ETF | 0.09% | $9.50B | +9.8% | +21.8% |
| ESGD iShares ESG Aware MSCI EAFE ETF | 0.21% | $8.90B | +11.7% | +19.8% |
| ESGE iShares ESG Aware MSCI EM ETF | 0.26% | $4.50B | +15.2% | +23.2% |
| DSI iShares ESG MSCI KLD 400 ETF | 0.25% | $4.20B | +14.5% | +25.0% |
| VSGX Vanguard ESG International Stock ETF | 0.1% | $4.10B | +14.3% | +21.9% |
| EAGG iShares ESG Aware US Aggregate Bond ETF | 0.1% | $3.80B | -1.2% | +5.1% |
Questions investors ask
Does LCTD pay dividends?
Yes. LCTD pays dividends semiannually, meaning twice a year. As of October 27, 2026, its trailing 12-month yield was 3.36%, or about $1.96 per share over the prior year. A trailing yield looks back at past payments. Future payments can rise or fall with the dividends paid by the foreign companies it holds and with currency moves. Anyone who needs steady monthly cash would have to plan around the twice-a-year schedule.
What is the expense ratio of LCTD?
LCTD's expense ratio is 0.20%, or about $20 a year for every $10,000 invested. That is slightly above the 0.17% average across the similar ESG funds we compared, and it ranks 5th of 8 on cost. Vanguard ESG International Stock ETF (VSGX) charges 0.10%, while iShares ESG Aware MSCI EAFE ETF (ESGD) charges 0.21%, about the same as LCTD.
LCTD vs ESGD: what's the difference?
Both are iShares/BlackRock ESG funds that hold stocks outside the U.S., but they differ in focus, size and returns. LCTD emphasizes companies' readiness for the carbon transition. ESGD tracks an ESG-screened version of the MSCI EAFE developed-markets index. ESGD is much larger, at $8.9 billion versus LCTD's $215.2 million. As of October 27, 2026, ESGD returned 11.7% over one year and 19.8% a year over three years, against LCTD's 10.8% and 19.3%. Their costs are nearly identical: 0.21% and 0.20%.
How did LCTD perform in 2022?
LCTD lost 16.97% in calendar 2022, its worst full year since it launched in April 2021. From its January 12, 2022 high to the October 12, 2022 low, it fell 29%. It took about 16.8 months to recover, regaining its earlier high on March 7, 2024. It then rose 17.13% in 2023, 3.17% in 2024 and 30.43% in 2025, its strongest year so far.
Is LCTD a good fund for retirement?
It depends on the role it plays. LCTD may suit retirees looking for a diversifier: non-U.S. stocks with a climate-transition tilt and a 3.36% trailing yield as of October 27, 2026. It is still an all-stock fund, though, and it dropped 29.8% at its worst. Its 5-year annualized return was 7.2% through October 27, 2026. Whether it fits depends on the rest of the portfolio and how much short-term loss its owner can tolerate.