LGOV vs SPY
LGOV vs SPY
First Trust Long Duration Opportunities ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | LGOV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.09% | |
| AUM | $622M | $789.1B | |
| Dividend Yield | 4.25% | 1.01% | |
| Holdings | 163 | 505 | |
| YTD Return | -1.53% | +11.49% | |
| 1Y Return | +1.02% | +21.37% | |
| 3Y Return (annualized) | +3.33% | +20.76% | |
| 5Y Return (annualized) | -2.72% | +12.94% | |
| Volatility (annualized) | 8.9% | 15.3% | |
| Max Drawdown | -33.0% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 22, 2019 | Jan 22, 1993 |
LGOV vs SPY Performance
First Trust Long Duration Opportunities ETF (LGOV) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LGOV returned +1.02% while SPY returned +21.37%. Year to date, LGOV is down 1.53% versus a gain of 11.49% for SPY.
Over three years, LGOV compounded at +3.33% per year against +20.76% for SPY; over five years the annualized figures are -2.72% and +12.94% respectively. Across the full 8-year window we track, SPY has the edge at +8.78% annualized vs +0.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.5% for SPY. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LGOV charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, LGOV currently yields 4.25% against 1.01% for SPY.
Holdings Overlap
LGOV and SPY share 0 holdings out of 603 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 SPY?
LGOV has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, LGOV or SPY?
Over the past year LGOV returned +1.02% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), LGOV annualized +0.03% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, LGOV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.9% for LGOV. Worst drawdown: LGOV -33.0% vs SPY -56.5%.
Should I hold both LGOV and SPY?
LGOV and SPY have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LGOV and SPY?
LGOV and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 603 unique securities.
Which pays a higher dividend, LGOV or SPY?
LGOV yields 4.25% while SPY yields 1.01%, so LGOV currently pays the higher dividend yield.
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