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First Trust Long Duration Opportunities ETF (LGOV) Sharpe Ratio: 0.73

ETF · Currency in USD · Last updated Jun 5, 2026

LGOV is an actively managed ETF by First Trust. LGOV launched on Jan 22, 2019 and has a 0.70% expense ratio.

LGOV's Sharpe Ratio of 0.73 indicates that for each unit of volatility, it generates 0.73 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 5, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

LGOV Sharpe Ratio Rank

LGOV Sharpe Ratio Rank: 21.922
Below Average

LGOV ranks above 21.9% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating below-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Returns may not adequately compensate for volatility taken
  • Consider smaller allocation given below-average risk-adjusted profile
  • Explore higher-ranked investments with better consistency
  • Assess whether the volatility profile aligns with your portfolio goals

LGOV Sharpe Ratio Market Positioning

The chart shows LGOV's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.86 or lower
  • Yellow zone (middle 50%): 0.86 to 2.40
  • Green zone (top 25%): 2.40 or higher
  • Top 1%: 7.72+
  • Median: 1.70 — half of all investments score higher

How it compares to other similar ETFs

The table compares First Trust Long Duration Opportunities ETF's Sharpe Ratio with other ETFs in the Mortgage Backed Securities category across multiple time periods, showing how LGOV's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 5, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
FTSDFranklin Short Duration U.S. Government ETF3.30
LMBSFirst Trust Low Duration Mortgage Opportunities ETF3.02
VABSVirtus Newfleet ABS/MBS ETF1.99
PMBSPIMCO Mortgage-Backed Securities Active Exchange-Traded Fund1.69
JMBSJanus Henderson Mortgage-Backed Securities ETF1.56
MTBASimplify MBS ETF1.56
DEEDFirst Trust TCW Securitized Plus ETF1.55
SMBSSchwab Mortgage-Backed Securities ETF1.51
SPMBSPDR Portfolio Mortgage Backed Bond ETF1.49
VMBSVanguard Mortgage-Backed Securities ETF1.45
LGOVFirst Trust Long Duration Opportunities ETF0.73

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows LGOV's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when LGOV consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does LGOV fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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