LGOV vs QQQ
LGOV vs QQQ
First Trust Long Duration Opportunities ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | LGOV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $622M | $455.8B | |
| Dividend Yield | 4.25% | 0.41% | |
| Holdings | 163 | 108 | |
| YTD Return | -1.14% | +18.20% | |
| 1Y Return | +1.65% | +27.63% | |
| 3Y Return (annualized) | +3.20% | +25.54% | |
| 5Y Return (annualized) | -2.43% | +15.12% | |
| Volatility (annualized) | 8.9% | 30.6% | |
| Max Drawdown | -33.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 22, 2019 | Mar 10, 1999 |
LGOV vs QQQ Performance
First Trust Long Duration Opportunities ETF (LGOV) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LGOV returned +1.65% while QQQ returned +27.63%. Year to date, LGOV is down 1.14% versus a gain of 18.20% for QQQ.
Over three years, LGOV compounded at +3.20% per year against +25.54% for QQQ; over five years the annualized figures are -2.43% and +15.12% respectively. Across the full 8-year window we track, QQQ has the edge at +13.11% annualized vs +0.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.9% for LGOV. 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 -33.0% for LGOV and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LGOV charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, LGOV currently yields 4.25% against 0.41% for QQQ.
Holdings Overlap
LGOV and QQQ share 0 holdings out of 203 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LGOV or QQQ?
LGOV has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, LGOV or QQQ?
Over the past year LGOV returned +1.65% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), LGOV annualized +0.08% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, LGOV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.9% for LGOV. Worst drawdown: LGOV -33.0% vs QQQ -83.0%.
Should I hold both LGOV and QQQ?
LGOV and QQQ have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LGOV and QQQ?
LGOV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 203 unique securities.
Which pays a higher dividend, LGOV or QQQ?
LGOV yields 4.25% while QQQ yields 0.41%, so LGOV currently pays the higher dividend yield.
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