LGOV vs SCHQ
First Trust Long Duration Opportunities ETF vs Schwab Long-Term US Treasury ETF
Which is better, LGOV or SCHQ?
LGOV has been ahead.
SCHQ has a lower expense ratio. LGOV led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | LGOV | SCHQ |
|---|---|---|
| Expense Ratio | 0.66% | 0.03%Best |
| AUM | $595M | $963M |
| Dividend Yield | 4.74% | 5.16% |
| Holdings | 364 | 102 |
| YTD Return | -5.66%Best | -5.74% |
| 1Y Return | -6.35%Best | -7.97% |
| 3Y Return (annualized) | +3.94%Best | +2.08% |
| 5Y Return (annualized) | -3.18%Best | -7.27% |
| Volatility (annualized) | 9.1%Best | 13.4% |
| Max Drawdown | -33.0%Best | -46.7% |
| $10,000 over 5 years | $8,508Best | $6,856 |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Fixed Income |
| Style | Long Term Government Bond | Long Term Government Bond |
| Inception | Jan 22, 2019 | Oct 10, 2019 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 10, 2019 to Oct 14, 2026 (7 years).
LGOV vs SCHQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7 years both funds cover.
LGOV vs SCHQ Performance
First Trust Long Duration Opportunities ETF (LGOV) is an ETF from First Trust Portfolios (US) and Schwab Long-Term US Treasury ETF (SCHQ) is an ETF from Charles Schwab Asset Management. Over the past year LGOV returned -6.35% while SCHQ returned -7.97%. Year to date, LGOV is down 5.66% versus a loss of 5.74% for SCHQ.
Over three years, LGOV compounded at +3.94% per year against +2.08% for SCHQ; over five years the annualized figures are -3.18% and -7.27% respectively. Across the full 7-year window we track, LGOV has the edge at -2.30% annualized vs -4.75%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHQ has been the more volatile fund, with annualized monthly volatility of 13.4% compared with 9.1% 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 -46.7% for SCHQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
LGOV charges 0.66% per year while SCHQ charges 0.03%. On a $10,000 position that is $66 vs $3 annually, a gap of $63 per year that compounds over a long holding period. On income, LGOV currently yields 4.74% against 5.16% for SCHQ.
You are not choosing between two funds in isolation.
Whichever of LGOV and SCHQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, LGOV or SCHQ?
LGOV has an expense ratio of 0.66% while SCHQ charges 0.03%. SCHQ is the cheaper option, by $63 a year on a $10,000 investment.
Which performed better, LGOV or SCHQ?
Over the past year LGOV returned -6.35% vs -7.97% for SCHQ, so LGOV leads on 1-year performance. Over the longest common window we track (7 years), LGOV annualized -2.30% vs -4.75% for SCHQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LGOV or SCHQ?
SCHQ has been the more volatile fund at 13.4% annualized versus 9.1% for LGOV. Worst drawdown: LGOV -33.0% vs SCHQ -46.7%.
Should I hold both LGOV and SCHQ?
LGOV and SCHQ have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, LGOV or SCHQ?
LGOV yields 4.74% while SCHQ yields 5.16%, so SCHQ currently pays the higher dividend yield.
Is SCHQ better than LGOV?
SCHQ has a lower expense ratio. LGOV led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. Which one suits a particular account depends on what it is for. This is information, not a recommendation.