MGOV vs QQQ
MGOV vs QQQ
First Trust Intermediate Government 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 | MGOV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $101M | $455.8B | |
| Dividend Yield | 4.95% | 0.41% | |
| Holdings | 186 | 108 | |
| YTD Return | +0.07% | +18.34% | |
| 1Y Return | +2.75% | +28.94% | |
| 3Y Return (annualized) | +4.50% | +25.28% | |
| 5Y Return (annualized) | - | +15.22% | |
| Volatility (annualized) | 6.4% | 30.6% | |
| Max Drawdown | -6.1% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 2, 2023 | Mar 10, 1999 |
MGOV vs QQQ Performance
First Trust Intermediate Government Opportunities ETF (MGOV) 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 MGOV returned +2.75% while QQQ returned +28.94%. Year to date, MGOV is up 0.07% versus a gain of 18.34% for QQQ.
Over three years, MGOV compounded at +4.50% per year against +25.28% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.12% annualized vs +4.67%. 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 6.4% for MGOV. 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 -6.1% for MGOV 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MGOV charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, MGOV currently yields 4.95% against 0.41% for QQQ.
Holdings Overlap
MGOV and QQQ share 0 holdings out of 172 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, MGOV or QQQ?
MGOV has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, MGOV or QQQ?
Over the past year MGOV returned +2.75% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MGOV annualized +4.67% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, MGOV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.4% for MGOV. Worst drawdown: MGOV -6.1% vs QQQ -83.0%.
Should I hold both MGOV and QQQ?
MGOV and QQQ have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MGOV and QQQ?
MGOV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 172 unique securities.
Which pays a higher dividend, MGOV or QQQ?
MGOV yields 4.95% while QQQ yields 0.41%, so MGOV currently pays the higher dividend yield.
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