ETF Evaluator: First Trust Long Duration Opp ETF () Follow This ETF

First Trust Long Duration Opp ETF Overview

First Trust Long Duration Opp ETF (LGOV) is an actively managed Taxable Bond Long Government exchange-traded fund (ETF). First Trust launched the ETF in 2019.

The investment seeks to generate current income with a focus on preservation of capital. Under normal market conditions, the fund will invest at least 80% of its net assets (including investment borrowings) in a portfolio of investment-grade debt securities issued or guaranteed by the U.S. government, its agencies or government-sponsored entities, including publicly-issued U.S. Treasury securities and mortgage-related securities. It may also invest in exchange-traded funds ("ETFs") that principally invest in such securities.

About First Trust Long Duration Opp ETF (LGOV)

There are 2 members of the management team with an average tenure of 7.53 years: Jeremiah Charles (2019) and James Snyder (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA 5+Y US Trsy TR USD index with a weighting of 100%. First Trust Long Duration Opp ETF has 188 securities in its portfolio. The top 10 holdings constitute 90.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

First Trust Long Duration Opp ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. First Trust Long Duration Opp ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.3% (99.3% domestic bond, 0.0% foreign bond and 0.0% convertible bond). First Trust Long Duration Opp ETF has 0.7% of the portfolio in cash.

Assets Under Management

The fund has $619 million in total assets, which is below the $4 billion average for the Long Government category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

LGOV Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust Long Duration Opp ETF expense ratio is average compared to funds in the Long Government category. First Trust Long Duration Opp ETF has an expense ratio of 0.49%, which is 112% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust Long Duration Opp ETF has a portfolio turnover rate of 158%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 60% for the Long Government category.

Recently, in the month of July 2026, First Trust Long Duration Opp ETF returned -2.8%, which earned it a grade of B, as the Long Government category had an average return of -4.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

First Trust Long Duration Opp ETF has a trailing yield of 4.42%, which is below the 5.37% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

First Trust Long Duration Opp ETF Grades

Year to date, the ETF has returned -2.1%, 1.2 percentage points better than the category, which translates into a grade of B. The fund has returned 2.3% over the past year (grade of A), 2.6% over the past three years (grade of A) and -2.6% per year over the past five years (grade of A).

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about First Trust Long Duration Opp ETF, including its riskiness, submit your email to unlock the rest of the article.