DFAC vs LCTU

DFACADimensional US Core Equity 2 ETF

LCTUAiShares U.S. Carbon Transition Readiness Aware Active ETF

In short

DFAC Dimensional's whole-market workhorse: roughly 2,600 US stocks in one ticker, run by managers who weigh federal tax consequences before they trade, at a fee closer to index funds than to active ones.

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

DFAC The fund seeks long-term capital appreciation while considering federal income-tax implications in its investment decisions.

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

• DFAC 0.17% a year for an actively run fund, well under the median fee among active US equity ETFs.
• About 2,600 US stocks under one ticker, so it holds the market broadly rather than a narrow slice of it.
• Federal income-tax implications sit inside the stated objective, not in a footnote, so they factor into what managers buy and sell.
• A multi-billion-dollar fund with a track record running back to 2007 and one of the strongest implementations in its peer group.

• 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

• DFAC Actively managed, so there's no published index to check it against. Holdings and tilts shift at the managers' discretion.
• Dimensional's own DFAU runs a US core equity mandate for 0.12%, a slightly lighter fee for a similar shelf.
• All stocks, all US: the mandate is capital appreciation from equities, so it takes the market's full swings, and cash arrives quarterly.

• 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 DFAC profile⁠

Full LCTU profile⁠