LGOV vs VYM
LGOV vs VYM
First Trust Long Duration Opportunities ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | LGOV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $622M | $79.0B | |
| Dividend Yield | 4.25% | 2.86% | |
| Holdings | 163 | 568 | |
| YTD Return | -1.53% | +13.82% | |
| 1Y Return | +1.02% | +24.08% | |
| 3Y Return (annualized) | +3.33% | +17.72% | |
| 5Y Return (annualized) | -2.72% | +12.13% | |
| Volatility (annualized) | 8.9% | 14.6% | |
| Max Drawdown | -33.0% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 22, 2019 | Nov 10, 2006 |
LGOV vs VYM Performance
First Trust Long Duration Opportunities ETF (LGOV) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LGOV returned +1.02% while VYM returned +24.08%. Year to date, LGOV is down 1.53% versus a gain of 13.82% for VYM.
Over three years, LGOV compounded at +3.33% per year against +17.72% for VYM; over five years the annualized figures are -2.72% and +12.13% respectively. Across the full 8-year window we track, VYM has the edge at +6.98% annualized vs +0.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LGOV charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, LGOV currently yields 4.25% against 2.86% for VYM.
Holdings Overlap
LGOV and VYM share 0 holdings out of 658 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 VYM?
LGOV has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, LGOV or VYM?
Over the past year LGOV returned +1.02% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), LGOV annualized +0.03% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, LGOV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.9% for LGOV. Worst drawdown: LGOV -33.0% vs VYM -58.8%.
Should I hold both LGOV and VYM?
LGOV and VYM have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LGOV and VYM?
LGOV and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 658 unique securities.
Which pays a higher dividend, LGOV or VYM?
LGOV yields 4.25% while VYM yields 2.86%, so LGOV currently pays the higher dividend yield.
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