LGOV vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricLGOVVTIWinner
Expense Ratio0.49%0.03%
AUM$622M$663.5B
Dividend Yield4.25%1.07%
Holdings1633,543
YTD Return-1.14%+14.20%
1Y Return+1.65%+24.16%
3Y Return (annualized)+3.20%+21.12%
5Y Return (annualized)-2.43%+12.37%
Volatility (annualized)8.9%15.3%
Max Drawdown-33.0%-56.6%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJan 22, 2019May 24, 2001

LGOV vs VTI Performance

First Trust Long Duration Opportunities ETF (LGOV) is a ETF from First Trust Portfolios (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year LGOV returned +1.65% while VTI returned +24.16%. Year to date, LGOV is down 1.14% versus a gain of 14.20% for VTI.

Over three years, LGOV compounded at +3.20% per year against +21.12% for VTI; over five years the annualized figures are -2.43% and +12.37% respectively. Across the full 8-year window we track, VTI has the edge at +8.14% annualized vs +0.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI 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 -56.6% for VTI. 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 VTI charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, LGOV currently yields 4.25% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

LGOV and VTI share 0 holdings out of 2883 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 VTI?

LGOV has an expense ratio of 0.49% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, LGOV or VTI?

Over the past year LGOV returned +1.65% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (8 years), LGOV annualized +0.08% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, LGOV or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 8.9% for LGOV. Worst drawdown: LGOV -33.0% vs VTI -56.6%.

Should I hold both LGOV and VTI?

LGOV and VTI 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 VTI?

LGOV and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2883 unique securities.

Which pays a higher dividend, LGOV or VTI?

LGOV yields 4.25% while VTI yields 1.07%, so LGOV currently pays the higher dividend yield.

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