MGOV vs SPY
MGOV vs SPY
First Trust Intermediate Government 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 | MGOV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $101M | $789.1B | |
| Dividend Yield | 4.95% | 1.01% | |
| Holdings | 186 | 505 | |
| YTD Return | -0.33% | +11.49% | |
| 1Y Return | +2.34% | +21.37% | |
| 3Y Return (annualized) | +4.36% | +20.76% | |
| 5Y Return (annualized) | - | +12.94% | |
| Volatility (annualized) | 6.4% | 15.3% | |
| Max Drawdown | -6.1% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 2, 2023 | Jan 22, 1993 |
MGOV vs SPY Performance
First Trust Intermediate Government Opportunities ETF (MGOV) 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 MGOV returned +2.34% while SPY returned +21.37%. Year to date, MGOV is down 0.33% versus a gain of 11.49% for SPY.
Over three years, MGOV compounded at +4.36% per year against +20.76% for SPY. Across the full 3-year window we track, SPY has the edge at +8.78% annualized vs +4.53%. 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 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 -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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MGOV charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, MGOV currently yields 4.95% against 1.01% for SPY.
Holdings Overlap
MGOV and SPY share 0 holdings out of 572 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 SPY?
MGOV has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, MGOV or SPY?
Over the past year MGOV returned +2.34% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), MGOV annualized +4.53% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, MGOV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.4% for MGOV. Worst drawdown: MGOV -6.1% vs SPY -56.5%.
Should I hold both MGOV and SPY?
MGOV and SPY have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MGOV and SPY?
MGOV and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 572 unique securities.
Which pays a higher dividend, MGOV or SPY?
MGOV yields 4.95% while SPY yields 1.01%, so MGOV currently pays the higher dividend yield.
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