LCTU
LCTU 2-star rating from Upturn Advisory

BlackRock U.S. Carbon Transition Readiness ETF (LCTU)

BlackRock U.S. Carbon Transition Readiness ETF (LCTU) 2-star rating from Upturn Advisory
$73.1
Last Close (24-hour delay)
Profit since last BUY16.12%
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BUY since 126 days
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Upturn Advisory Summary

11/07/2025: LCTU (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

Upturn 2 star rating for performance

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type ETF
Historic Profit 37.22%
Avg. Invested days 71
Today’s Advisory Consider higher Upturn Star rating
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Upturn Advisory Performance Upturn Advisory Performance icon 5.0
ETF Returns Performance Upturn Returns Performance icon 5.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/07/2025

Key Highlights

Volume (30-day avg) -
Beta 1.02
52 Weeks Range 52.35 - 67.03
Updated Date 06/29/2025
52 Weeks Range 52.35 - 67.03
Updated Date 06/29/2025

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

BlackRock U.S. Carbon Transition Readiness ETF

BlackRock U.S. Carbon Transition Readiness ETF(LCTU) company logo displayed in Upturn AI summary

ETF Overview

overview logo Overview

The BlackRock U.S. Carbon Transition Readiness ETF (LCTU) aims to track an index that measures the performance of U.S. companies that are well-positioned to benefit from the transition to a low-carbon economy. It invests in large- and mid-capitalization U.S. equities deemed to be leaders in carbon transition readiness, focusing on companies that are adapting their business models and practices to reduce their carbon footprint and capitalize on opportunities in the clean energy sector.

Reputation and Reliability logo Reputation and Reliability

BlackRock is one of the world's largest asset managers, known for its extensive experience and diverse range of investment products. They have a strong reputation for reliability and innovation.

Leadership icon representing strong management expertise and executive team Management Expertise

BlackRock has a dedicated team of investment professionals with expertise in sustainable investing and environmental, social, and governance (ESG) factors.

Investment Objective

Icon representing investment goals and financial objectives Goal

The primary goal of LCTU is to provide investment results that correspond to the price and yield performance, before fees and expenses, of the Morningstar US Carbon Transition Readiness Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Morningstar US Carbon Transition Readiness Index. This index selects and weights companies based on their carbon transition readiness, using a proprietary methodology developed by Morningstar.

Composition The ETF holds a portfolio of U.S. equities, primarily large- and mid-capitalization companies, selected for their carbon transition readiness scores. Holdings are diversified across various sectors to mitigate concentration risk.

Market Position

Market Share: LCTU's market share within the carbon transition ETF space is growing, but it is not the dominant player.

Total Net Assets (AUM): 25930000

Competitors

Key Competitors logo Key Competitors

  • ICLN
  • TAN
  • QCLN
  • FAN

Competitive Landscape

The carbon transition ETF market is competitive, with numerous ETFs offering different approaches to sustainable investing. LCTU's advantage lies in its use of the Morningstar carbon transition readiness methodology, potentially offering a more targeted approach than broader ESG or clean energy ETFs. However, larger competitors like ICLN and TAN have greater AUM and trading volume, potentially offering better liquidity and lower expense ratios.

Financial Performance

Historical Performance: Historical performance data will vary, and is important to look up current, live data from financial sources.

Benchmark Comparison: The ETF's performance should be compared to the Morningstar US Carbon Transition Readiness Index to assess its tracking effectiveness.

Expense Ratio: 0.08

Liquidity

Average Trading Volume

The ETF's average trading volume indicates its liquidity, where higher trading volumes generally mean it's more liquid.

Bid-Ask Spread

The bid-ask spread represents the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, indicating the cost of trading the ETF.

Market Dynamics

Market Environment Factors

Economic indicators, sector growth prospects in clean energy and sustainable technology, and broader market conditions all influence the ETF's performance.

Growth Trajectory

The ETF's growth trajectory depends on investor demand for sustainable investing and the performance of companies positioned to benefit from the carbon transition. Changes to strategy and holdings are disclosed in fund prospectuses and reports.

Moat and Competitive Advantages

Competitive Edge

LCTU's competitive edge lies in its use of the Morningstar carbon transition readiness methodology, which aims to identify companies that are genuinely adapting to a low-carbon economy, rather than simply screening based on ESG scores. This methodology potentially offers a more targeted and effective approach to sustainable investing. BlackRock's strong brand and distribution network also provide a competitive advantage. The low expense ratio also enhances its attractiveness to investors.

Risk Analysis

Volatility

The ETF's historical volatility can be assessed by examining its standard deviation and beta relative to the broader market. Data should be obtained from recent financial sources.

Market Risk

The ETF is subject to market risk, including the risk of declines in the overall stock market. Specific risks include those associated with investing in companies in sectors undergoing rapid change and those related to the regulatory and policy environment surrounding climate change.

Investor Profile

Ideal Investor Profile

The ideal investor for LCTU is someone who is interested in sustainable investing and believes in the long-term potential of companies that are well-positioned to benefit from the transition to a low-carbon economy. This investor is likely to have a moderate to long-term investment horizon.

Market Risk

LCTU is suitable for long-term investors seeking exposure to the carbon transition theme. Active traders may also find it appealing, but should be aware of the trading costs and potential volatility.

Summary

BlackRock's U.S. Carbon Transition Readiness ETF (LCTU) provides exposure to U.S. companies poised to benefit from the shift to a low-carbon economy, utilizing Morningstar's carbon transition readiness methodology for stock selection. Its low expense ratio and reputable issuer enhance its appeal, but it faces competition from larger ETFs in the sustainable investing space. Investors seeking targeted exposure to carbon transition and committed to ESG values may find LCTU a fitting addition to their portfolios. Understanding both the risks and opportunities within the evolving low-carbon landscape is crucial for making informed investment decisions.

Similar ETFs

Sources and Disclaimers

Data Sources:

  • BlackRock official website
  • Morningstar
  • ETF.com
  • Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and after consulting with a qualified financial advisor. Past performance is not indicative of future results. Market share data is approximate and based on available public information, and AUM data can fluctuate.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About BlackRock U.S. Carbon Transition Readiness ETF

Exchange NYSE ARCA
Headquaters -
IPO Launch date -
CEO -
Sector -
Industry -
Full time employees -
Website
Full time employees -
Website

The fund seeks to outperform the price and yield performance of the Russell 1000 ®Index before including Fund expenses by optimizing for LCETR scores criteria based on proprietary BFA research. It invests at least 80% of its net assets plus the amount of any borrowings for investment purposes in equity securities of issuers listed in the United States of America.