MGOV vs VYM
MGOV vs VYM
First Trust Intermediate Government 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 | MGOV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $101M | $79.0B | |
| Dividend Yield | 4.95% | 2.86% | |
| Holdings | 186 | 568 | |
| YTD Return | +0.07% | +15.57% | |
| 1Y Return | +2.75% | +25.99% | |
| 3Y Return (annualized) | +4.50% | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 6.4% | 14.6% | |
| Max Drawdown | -6.1% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 2, 2023 | Nov 10, 2006 |
MGOV vs VYM Performance
First Trust Intermediate Government Opportunities ETF (MGOV) 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 MGOV returned +2.75% while VYM returned +25.99%. Year to date, MGOV is up 0.07% versus a gain of 15.57% for VYM.
Over three years, MGOV compounded at +4.50% per year against +18.02% for VYM. Across the full 3-year window we track, VYM has the edge at +7.07% annualized vs +4.67%. 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 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 -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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MGOV charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, MGOV currently yields 4.95% against 2.86% for VYM.
Holdings Overlap
MGOV and VYM share 0 holdings out of 627 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 VYM?
MGOV has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, MGOV or VYM?
Over the past year MGOV returned +2.75% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), MGOV annualized +4.67% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MGOV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.4% for MGOV. Worst drawdown: MGOV -6.1% vs VYM -58.8%.
Should I hold both MGOV and VYM?
MGOV and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MGOV and VYM?
MGOV and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 627 unique securities.
Which pays a higher dividend, MGOV or VYM?
MGOV yields 4.95% while VYM yields 2.86%, so MGOV currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.