FGSI vs. PEPS

Last updated Jul 14, 2026

FGSI (First Trust Vest Growth Strength & Target Income ETF) and PEPS (Parametric Equity Plus ETF) are both Derivative Income funds. Both are actively managed. Over the past year, FGSI returned 9.70% vs 24.89% for PEPS. A 0.78 correlation means they provide meaningful diversification when combined. FGSI charges 0.85%/yr vs 0.10%/yr for PEPS.

Performance

FGSI vs. PEPS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Vest Growth Strength & Target Income ETF (FGSI) and Parametric Equity Plus ETF (PEPS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FGSI achieves a 6.66% return, which is significantly lower than PEPS's 10.36% return.

FGSI

• 1D: -0.48%
• 1M: 1.94%
• 6M: 3.70%
• YTD: 6.66%
• 1Y: 9.70%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PEPS

• 1D: -0.73%
• 1M: 1.90%
• 6M: 7.86%
• YTD: 10.36%
• 1Y: 24.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FGSI vs. PEPS - Yearly Performance Comparison

	2026 (YTD)	2025
FGSI First Trust Vest Growth Strength & Target Income ETF	6.66%	4.53%
PEPS Parametric Equity Plus ETF	10.36%	15.69%

Correlation

The correlation between FGSI and PEPS is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (All Time) Calculated using the full available price history since Jun 26, 2025	0.78

The correlation between FGSI and PEPS has been stable across timeframes, ranging from 0.78 to 0.79 - a consistent structural relationship.

Return for Risk

FGSI vs. PEPS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FGSI

FGSI Risk / Return Rank: 27
FGSI Sharpe Ratio Rank: 26
FGSI Sortino Ratio Rank: 25
FGSI Omega Ratio Rank: 24
FGSI Calmar Ratio Rank: 30
FGSI Martin Ratio Rank: 32

PEPS

PEPS Risk / Return Rank: 70
PEPS Sharpe Ratio Rank: 71
PEPS Sortino Ratio Rank: 66
PEPS Omega Ratio Rank: 70
PEPS Calmar Ratio Rank: 65
PEPS Martin Ratio Rank: 76

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FGSI vs. PEPS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Vest Growth Strength & Target Income ETF (FGSI) and Parametric Equity Plus ETF (PEPS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FGSI	PEPS	Difference
Sharpe ratio: Return per unit of total volatility	0.77	1.81	-1.04
Sortino ratio: Return per unit of downside risk	1.16	2.42	-1.26
Omega ratio: Gain probability vs. loss probability	1.14	1.33	-0.19
Calmar ratio: Return relative to maximum drawdown	1.18	2.55	-1.37
Martin ratio: Return relative to average drawdown	3.79	11.27	-7.47

FGSI vs. PEPS - Sharpe Ratio Comparison

The current FGSI Sharpe Ratio is 0.77, which is lower than the PEPS Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of FGSI and PEPS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FGSI vs. PEPS - Drawdown Comparison

The maximum FGSI drawdown since its inception was -8.25%, smaller than the maximum PEPS drawdown of -21.26%. Use the drawdown chart below to compare losses from any high point for FGSI and PEPS.

Drawdown Indicators

	FGSI	PEPS	Difference
Max Drawdown Largest peak-to-trough decline	-8.25%	-21.26%	+13.01%
Max Drawdown (1Y) Largest decline over 1 year	-8.25%	-9.80%	+1.55%
Current Drawdown Current decline from peak	-0.99%	-0.79%	-0.20%
Average Drawdown Average peak-to-trough decline	-1.89%	-2.71%	+0.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.56%	2.21%	+0.35%

Volatility

FGSI vs. PEPS - Volatility Comparison

The current volatility for First Trust Vest Growth Strength & Target Income ETF (FGSI) is 3.63%, while Parametric Equity Plus ETF (PEPS) has a volatility of 4.20%. This indicates that FGSI experiences smaller price fluctuations and is considered to be less risky than PEPS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FGSI	PEPS	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.63%	4.20%	-0.57%
Volatility (6M) Calculated over the trailing 6-month period	10.12%	10.88%	-0.76%
Volatility (1Y) Calculated over the trailing 1-year period	12.61%	13.85%	-1.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.47%	18.21%	-5.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.47%	18.21%	-5.74%

FGSI vs. PEPS - Expense Ratio Comparison

FGSI has a 0.85% expense ratio, which is higher than PEPS's 0.10% expense ratio.

Dividends

FGSI vs. PEPS - Dividend Comparison

FGSI's dividend yield for the trailing twelve months is around 8.19%, more than PEPS's 0.92% yield.

Position	TTM	2025	2024
FGSI First Trust Vest Growth Strength & Target Income ETF	8.19%	4.20%	0.00%
PEPS Parametric Equity Plus ETF	0.92%	1.00%	0.17%

Frequently Asked Questions

Can I hold both FGSI and PEPS in my portfolio?

FGSI and PEPS have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FGSI or PEPS?

PEPS has higher volatility (4.20%) compared to FGSI (3.63%). In terms of maximum drawdown, FGSI dropped -8.25% vs PEPS's -21.26%.

Which ETF is better, FGSI or PEPS?

On 1-year performance, PEPS leads with 24.89% vs 9.70% for FGSI. On fees, PEPS is cheaper at 0.10% per year. On volatility, FGSI has been the lower-risk option at 3.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FGSI or PEPS?

Over the 1-year period, PEPS has performed better with a 24.89% return vs 9.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FGSI or PEPS?

PEPS is cheaper with a 0.10% expense ratio, compared with 0.85% for FGSI.

Which ETF pays a higher dividend yield, FGSI or PEPS?

FGSI has the higher dividend yield at 8.19%, compared with 0.92% for PEPS.

What is the main difference between FGSI and PEPS?

They also come from different issuers: First Trust and Parametric. Their fees differ too: 0.85% for FGSI and 0.10% for PEPS.

Which has better risk-adjusted returns?

PEPS currently has the higher Sharpe Ratio (1.81 vs 0.77), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.