AVLC vs LCTU

AVLCAAvantis U.S. Large Cap Equity ETF

LCTUAiShares U.S. Carbon Transition Readiness Aware Active ETF

In short

AVLC Active management with index-fund manners: roughly 900 U.S. large caps, with the dial turned toward cheaper, more profitable companies. Avantis charges 0.15% a year to do it.

LCTU BlackRock's climate pick: an active Russell 1000 portfolio tilted toward companies it scores as transition-ready, at 0.15% net of a waiver through June 30, 2027. Launched in 2021 with the biggest first-day haul the ETF industry had seen.

Stated mandate

AVLC The fund seeks long-term capital appreciation. It invests broadly in U.S. large-capitalization companies while using active decisions to overweight lower valuations and higher profitability.

LCTU LCTU pursues long-term capital growth through U.S. large- and mid-cap equities that BlackRock judges more capable of benefiting from the shift toward a low-carbon economy.

Why people hold it

• AVLC 0.15% a year against a 0.65% median for active U.S. equity funds. That is passive-style pricing on an actively run book.
• Holds about 900 names against the Russell 1000, so the value and profitability tilts sit on top of broad market exposure instead of a concentrated bet.avantisinvestors.com
• One of the stronger builds in the active U.S. equity group, priced in the same neighborhood as the Dimensional core funds (DFAU, DFAC) it competes with.
• A multi-billion-dollar fund that trades steadily, so spreads and liquidity are rarely the sticking point. Distributions are paid quarterly.

• LCTU Costs 0.15% net of a waiver through June 30, 2027, below the typical active US large-cap fund and level with Avantis' AVLC at 0.15%.
• The tilt is written down, not vibed: names come from Russell 1000 members, and the fund targets a carbon-transition-readiness score at least 10% better than that index at purchase.sec.gov
• One of the stronger builds in a crowded field of active US equity ETFs: roughly 300 large- and mid-cap names, quarterly distributions, a multi-billion-dollar asset base.

Worth knowing

• AVLC Launched in 2023. The tilt philosophy is well worn at Avantis, but this fund's own live record is still short.
• Active, not index-tracking. The Russell 1000 is a reference point, not a leash, so holdings and weights can drift from it.
• Leaning toward cheaper, higher-profitability companies means stretches where it moves differently from the plain cap-weighted market, in either direction.avantisinvestors.com

• LCTU That 0.15% rides on a waiver. The gross fee is 0.30%, and the discount is committed only through June 30, 2027.
• The screen is BlackRock's own research, not a public index rulebook, and the fund can drift from its 10% uplift target as markets move or data changes.sec.gov
• Fully invested US stocks, no downside cushion, and because the names are drawn from the Russell 1000 the portfolio can look a lot like the broad market.sec.gov

Full AVLC profile⁠

Full LCTU profile⁠