LCTU vs RECS
iShares US Carbon Transition Readiness Aware Active ETF vs Columbia Research Enhanced Core ETF
Which is better, LCTU or RECS?
RECS has been ahead.
RECS led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.98. LCTU is less concentrated, with 35.5% of the fund in its ten largest positions against 42.0%.
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 | RECS |
|---|---|---|
| Expense Ratio | 0.15%Tie | 0.15%Tie |
| AUM | $1.2B | $6.2B |
| Dividend Yield | 0.97% | 1.01% |
| Holdings | 334 | 718 |
| YTD Return | +11.76%Best | +11.16% |
| 1Y Return | +15.34% | +15.54%Best |
| 3Y Return (annualized) | +21.21% | +22.44%Best |
| 5Y Return (annualized) | +11.70% | +13.81%Best |
| Volatility (annualized) | 15.5% | 14.3%Best |
| Max Drawdown | -25.9% | -22.1%Best |
| $10,000 over 5 years | $17,389 | $19,094Best |
| Top 10 Weight | 35.5%Best | 42.0% |
| Fund Family | iShares by BlackRock (US) | Columbia Threadneedle Investments |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 6, 2021 | Sep 25, 2019 |
Volatility and max drawdown are measured over the window both funds cover: Apr 8, 2021 to Oct 14, 2026 (5.5 years).
LCTU vs RECS 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 5.5 years both funds cover.
LCTU vs RECS Performance
iShares US Carbon Transition Readiness Aware Active ETF (LCTU) is an ETF from iShares by BlackRock (US) and Columbia Research Enhanced Core ETF (RECS) is an ETF from Columbia Threadneedle Investments. Over the past year LCTU returned +15.34% while RECS returned +15.54%. Year to date, LCTU is up 11.76% versus a gain of 11.16% for RECS.
Over three years, LCTU compounded at +21.21% per year against +22.44% for RECS; over five years the annualized figures are +11.70% and +13.81% respectively. Across the full 6-year window we track, RECS has the edge at +14.41% annualized vs +12.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LCTU has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 14.3% for RECS. 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 -22.1% for RECS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.98. 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 RECS charges 0.15%. On a $10,000 position that is $15 vs $15 annually. On income, LCTU currently yields 0.97% against 1.01% for RECS.
Holdings Overlap
40.7% of LCTU's money is in holdings RECS also owns. 68.9% of RECS's money is in holdings LCTU also owns.
The two portfolios partly overlap.
115 positions in common, counted across the 331 positions we hold weights for in LCTU and 353 in RECS, against full books of 334 and 718.
What only one of them owns
Our book lists 226 positions for RECS that do not appear in our book for LCTU (30.2% of the fund), and 202 for LCTU that do not appear in RECS (58.6%).
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 RECS | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.16% | 12.01% | 3.85% |
| AAPLApple, Inc | 7.17% | 11.96% | 4.79% |
| METAMeta Platforms Inc | 2.43% | 4.79% | 2.36% |
| MUMicron Technology, Inc. | 1.66% | 2.28% | 0.62% |
| BACBank of America Corp.: Financials | 1.30% | 2.04% | 0.74% |
| MAMastercard Inc | 0.85% | 2.36% | 1.51% |
| CVXChevron Corp | 0.14% | 1.60% | 1.46% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.61% | 1.05% | 0.44% |
| LRCXLam Research Corp | 0.71% | 0.73% | 0.02% |
| PLTRPalantir Technologies Inc | 0.50% | 0.93% | 0.43% |
68.9% of RECS 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.
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Frequently Asked Questions
Which is cheaper, LCTU or RECS?
LCTU has an expense ratio of 0.15% while RECS charges 0.15%. At the precision these are quoted to, they cost the same.
Which performed better, LCTU or RECS?
Over the past year LCTU returned +15.34% vs +15.54% for RECS, so RECS leads on 1-year performance. Over the longest common window we track (6 years), LCTU annualized +12.46% vs +14.41% for RECS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LCTU or RECS?
LCTU has been the more volatile fund at 15.5% annualized versus 14.3% for RECS. Worst drawdown: LCTU -25.9% vs RECS -22.1%.
Should I hold both LCTU and RECS?
LCTU and RECS have a monthly-return correlation of 0.98, 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 RECS?
68.9% of RECS's money is in holdings LCTU also owns. 68.9% of RECS's is in holdings LCTU also owns. They hold 115 positions in common, counted across the 331 positions we hold weights for in LCTU and 353 in RECS.
Which pays a higher dividend, LCTU or RECS?
LCTU yields 0.97% while RECS yields 1.01%, so RECS currently pays the higher dividend yield.
Is RECS better than LCTU?
RECS led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.98. LCTU is less concentrated, with 35.5% of the fund in its ten largest positions against 42.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.