At a glance
LCTU charges 0.14% a year, above the 0.12% average of the 7 funds most like it (the 6th cheapest of 8). It has $1.20B in assets, the 5th largest of that group; it paid 0.96% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +11.1% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +23.8% a year. At its worst it fell 25.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months after the low.
The short version
BlackRock U.S. Carbon Transition Readiness ETF (LCTU) is a U.S. stock fund that launched on April 6, 2021. Its name says it favors companies seen as better prepared for a shift to a lower-carbon economy. It has moved in step with the broad market, with a one-year beta of 1 as of October 27, 2026. Its 0.14% expense ratio is above the 0.03% charged by S&P 500 funds such as IVV and VOO.
Price history
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LCTU +11.1% 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 | |
|---|---|---|---|---|---|---|
| LCTU price data to Oct 27, 2026 | +11.8% | +11.1% | +23.8% | +11.1% | — | +12.4% |
- Over the year to Oct 27, 2026, LCTU returned +11.1%, 8th of 8 among similar funds.
- Its 5-year annualized return was +11.1%.
- Its worst full calendar year was 2022 (-20.0%); its best was 2023 (+25.4%).
- The deepest fall in its price history was 25.9% (Jan 4, 2022 to Oct 12, 2022), recovered by Jan 19, 2024.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +11.8% |
| 2025 | +16.9% |
| 2024 | +24.0% |
| 2023 | +25.4% |
| 2022 | -20.0% |
| 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 25.8% over that stretch · deepest drop along the way 25.9%, back to its old high 15.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5400 | |
| 2025 | $0.7500 | -7.4% |
| 2024 | $0.8100 | +6.6% |
| 2023 | $0.7600 | +10.1% |
| 2022 | $0.6900 |
How it works
LCTU's prospectus wasn't available for this review. The ticker also doesn't appear in the SEC's ticker lists, which can happen when a fund has been renamed, closed or isn't registered with the SEC. So this page can't confirm which index the fund follows, if any, or its exact rules for choosing, weighting and rebalancing stocks. BlackRock's latest prospectus is the place to check those details and whether the fund is still open.
The name and track record do tell us some things. The fund holds U.S. stocks and is built around "carbon transition readiness." That term describes how well a company may be placed as the economy moves away from fossil fuels, judged by things like emissions and clean-energy activity. Its beta of 1 over the year to October 27, 2026, shows it has moved much like a broad U.S. large-company fund. (Beta measures how closely a fund moves with the overall market; 1 means in step.)
The structure is simple. The fund doesn't use leverage, options or a buffer, and it pays dividends quarterly.
What it really costs
- LCTU charges 0.14% a year, versus an average of 0.12% for the similar funds below (6th of 8, cheapest first).
In a retirement portfolio
It has moved in line with the broad U.S. stock market, with a one-year beta of 1, while adding a climate-transition tilt.
LCTU launched in April 2021, so it has no record in the 2008 or 2020 crashes. In the 2022 bear market it fell 25.9% from January 4 to October 12, 2022. It took 15.2 months from that low to regain its old high, which it did on January 19, 2024. Its worst calendar year was 2022, at -20.02%. Anyone who had to sell shares or draw income during that stretch would have locked in losses. Income is small: the trailing yield was 0.96% as of October 27, 2026, paid quarterly. The 0.14% expense ratio is low but above the 0.03% charged by IVV and VOO. The fund's ticker wasn't found in SEC ticker lists, so it's worth confirming that the fund is still open. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want broad U.S. stock exposure from BlackRock with a carbon-transition tilt, and who accept a 0.14% expense ratio.
- Long-term holders who can ride out market-sized swings, like the 25.9% drop in 2022 that took until January 2024 to recover.
- People who don't need much income from this holding; the yield was 0.96% as of October 27, 2026, paid quarterly.
Look elsewhere if
- Cost-focused investors: IVV, VOO and USPX charge 0.03%, and BKLC lists 0%, compared with LCTU's 0.14%.
- People who need a fund to provide steady income; LCTU's 0.96% yield as of October 27, 2026, provides little cash to draw on.
- Investors who want confirmed rules and status: LCTU's ticker wasn't found in SEC ticker lists, which can mean it was renamed or closed.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| LCTU this fund | 0.14% | $1.20B | +11.1% | +23.8% |
| USPX Franklin U.S. Equity Index ETF | 0.03% | $1.20B | +12.9% | +24.9% |
| IVV iShares Core S&P 500 ETF | 0.03% | $579.90B | +11.5% | +22.0% |
| BKLC BNY Mellon US Large Cap Core Equity ETF | 0% | $3.20B | +13.4% | +25.4% |
| GPIX S&P 500 Core Premium Income ETF | 0.29% | $542.4M | +14.7% | +22.6% |
| VOO Vanguard S&P 500 ETF | 0.03% | $1.30T | +12.4% | +23.6% |
| XYLG Global X S&P 500 Covered Call & Growth ETF | 0.35% | $50.5M | +15.0% | +20.1% |
| SPY SPDR S&P 500 ETF Trust | 0.0945% | $576.00B | +11.5% | +21.9% |
Questions investors ask
Is LCTU a good ETF for retirement?
It depends on the role it would play. LCTU has behaved like a broad U.S. stock fund, with a beta of 1 over the year to October 27, 2026. That means it could fill a core stock slot for someone who wants a climate tilt. It fell 25.9% in 2022 and didn't fully recover until January 19, 2024. Its 0.96% yield is small. Its ticker also wasn't found in SEC ticker lists, so it's worth confirming the fund's status with BlackRock.
What's the difference between LCTU and IVV?
IVV follows the S&P 500 and charges 0.03% a year. LCTU charges 0.14% and tilts toward companies judged better prepared for a lower-carbon economy. Their returns have been close. As of October 27, 2026, LCTU returned 11.1% over one year and 23.8% a year over three years. As of October 30, 2026, IVV returned 12.4% and 23.6%. LCTU suits investors who want the climate tilt; IVV suits those who want the plain index at a lower cost.
Does LCTU pay dividends?
Yes, it pays quarterly. In the 12 months to October 27, 2026, it paid $0.79 per share, a trailing yield of 0.96%. That's modest, which is normal for a fund of U.S. large-company stocks, so most of its return has come from price growth. Option-income funds such as GPIX pay more, but they follow a different strategy and aren't direct alternatives.
What is LCTU's expense ratio?
LCTU's expense ratio is 0.14% a year. That's a little above the 0.12% average for the similar funds compared here, and it ranks 6th of 8 on cost. The S&P 500 funds IVV and VOO charge 0.03%, SPY charges about 0.09%, and BKLC lists 0%. The gap is small in any one year, but it adds up over decades of holding.
How much did LCTU lose in 2022?
LCTU lost 20.02% in calendar 2022, its worst year since it launched in April 2021. From its peak on January 4, 2022, to its low on October 12, 2022, it fell 25.9%. It regained that peak on January 19, 2024, 15.2 months after the low. It then returned 25.38% in 2023, 24% in 2024 and 16.95% in 2025.