LGOV vs SCHD
First Trust Long Duration Opportunities ETF vs Schwab US Dividend Equity ETF
Which is better, LGOV or SCHD?
Long Term Government Bond against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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 | SCHD |
|---|---|---|
| Expense Ratio | 0.49% | 0.06%Best |
| AUM | $626M | $112.1B |
| Dividend Yield | 4.44% | 3.00% |
| Holdings | 381 | 103 |
| YTD Return | -3.80% | +25.88%Best |
| 1Y Return | -3.66% | +30.22%Best |
| 3Y Return (annualized) | +2.99% | +16.05%Best |
| 5Y Return (annualized) | -3.06% | +10.17%Best |
| Volatility (annualized) | 8.9%Best | 16.2% |
| Max Drawdown | -33.0%Best | -33.4% |
| $10,000 over 5 years | $8,561 | $16,230Best |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Long Term Government Bond | Large Cap Value |
| Inception | Jan 22, 2019 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 23, 2019 to Sep 14, 2026 (7.6 years).
LGOV vs SCHD 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 7.6 years both funds cover.
LGOV vs SCHD Performance
First Trust Long Duration Opportunities ETF (LGOV) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year LGOV returned -3.66% while SCHD returned +30.22%. Year to date, LGOV is down 3.80% versus a gain of 25.88% for SCHD.
Over three years, LGOV compounded at +2.99% per year against +16.05% for SCHD; over five years the annualized figures are -3.06% and +10.17% respectively. Across the full 8-year window we track, SCHD has the edge at +13.10% annualized vs -0.28%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 8.9% 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 -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.23. They move largely independently of each other.
Fees and Cost Over Time
LGOV charges 0.49% per year while SCHD charges 0.06%. On a $10,000 position that is $49 vs $6 annually, a gap of $43 per year that compounds over a long holding period. On income, LGOV currently yields 4.44% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 107 holdings in LGOV and 100 in SCHD, totalling 88.8% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 107 positions we hold weights for in LGOV and 100 in SCHD, against full books of 381 and 103.
You are not choosing between two funds in isolation.
Whichever of LGOV and SCHD 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 SCHD?
LGOV has an expense ratio of 0.49% while SCHD charges 0.06%. SCHD is the cheaper option, by $43 a year on a $10,000 investment.
Which performed better, LGOV or SCHD?
Over the past year LGOV returned -3.66% vs +30.22% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), LGOV annualized -0.28% vs +13.10% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LGOV or SCHD?
SCHD has been the more volatile fund at 16.2% annualized versus 8.9% for LGOV. Worst drawdown: LGOV -33.0% vs SCHD -33.4%.
Should I hold both LGOV and SCHD?
LGOV and SCHD have a monthly-return correlation of 0.23, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, LGOV or SCHD?
LGOV yields 4.44% while SCHD yields 3.00%, so LGOV currently pays the higher dividend yield.
Is SCHD better than LGOV?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.