MGOV vs SCHD
MGOV vs SCHD
First Trust Intermediate Government Opportunities ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | MGOV | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $101M | $103.7B | |
| Dividend Yield | 4.95% | 3.31% | |
| Holdings | 186 | 104 | |
| YTD Return | -0.12% | +23.53% | |
| 1Y Return | +2.53% | +30.95% | |
| 3Y Return (annualized) | +4.43% | +14.72% | |
| 5Y Return (annualized) | - | +9.56% | |
| Volatility (annualized) | 6.4% | 13.6% | |
| Max Drawdown | -6.1% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 2, 2023 | Oct 20, 2011 |
MGOV vs SCHD Performance
First Trust Intermediate Government Opportunities ETF (MGOV) is a ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MGOV returned +2.53% while SCHD returned +30.95%. Year to date, MGOV is down 0.12% versus a gain of 23.53% for SCHD.
Over three years, MGOV compounded at +4.43% per year against +14.72% for SCHD. Across the full 3-year window we track, SCHD has the edge at +11.35% annualized vs +4.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% 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 -33.4% for SCHD. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MGOV charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, MGOV currently yields 4.95% against 3.31% for SCHD.
Holdings Overlap
MGOV and SCHD share 0 holdings out of 169 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 SCHD?
MGOV has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, MGOV or SCHD?
Over the past year MGOV returned +2.53% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), MGOV annualized +4.59% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, MGOV or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.4% for MGOV. Worst drawdown: MGOV -6.1% vs SCHD -33.4%.
Should I hold both MGOV and SCHD?
MGOV and SCHD have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MGOV and SCHD?
MGOV and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 169 unique securities.
Which pays a higher dividend, MGOV or SCHD?
MGOV yields 4.95% while SCHD yields 3.31%, so MGOV currently pays the higher dividend yield.
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