FPE vs. IYG
Compare and contrast key facts about First Trust Preferred Securities & Income ETF (FPE) and iShares U.S. Financial Services ETF (IYG).
FPE and IYG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FPE is an actively managed fund by First Trust. It was launched on Feb 12, 2013. IYG is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Financial Services TR. It was launched on Jun 12, 2000.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FPE or IYG.
Key characteristics
| FPE | IYG | |
|---|---|---|
| YTD Return | 3.72% | 9.60% |
| 1Y Return | 16.76% | 38.24% |
| 3Y Return (Ann) | -0.31% | 6.68% |
| 5Y Return (Ann) | 3.20% | 14.00% |
| 10Y Return (Ann) | 4.53% | 14.72% |
| Sharpe Ratio | 3.13 | 2.74 |
| Daily Std Dev | 5.40% | 13.89% |
| Max Drawdown | -33.35% | -79.74% |
| Current Drawdown | -3.95% | -1.55% |
Correlation
The correlation between FPE and IYG is 0.33, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
FPE vs. IYG - Performance Comparison
In the year-to-date period, FPE achieves a 3.72% return, which is significantly lower than IYG's 9.60% return. Over the past 10 years, FPE has underperformed IYG with an annualized return of 4.53%, while IYG has yielded a comparatively higher 14.72% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FPE vs. IYG - Expense Ratio Comparison
FPE has a 0.85% expense ratio, which is higher than IYG's 0.42% expense ratio.
Risk-Adjusted Performance
FPE vs. IYG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Preferred Securities & Income ETF (FPE) and iShares U.S. Financial Services ETF (IYG). 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.
Dividends
FPE vs. IYG - Dividend Comparison
FPE's dividend yield for the trailing twelve months is around 5.82%, more than IYG's 3.87% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FPE First Trust Preferred Securities & Income ETF | 5.82% | 6.03% | 5.67% | 4.48% | 4.88% | 5.32% | 6.14% | 5.39% | 5.97% | 5.49% | 6.00% | 4.69% |
IYG iShares U.S. Financial Services ETF | 3.87% | 5.32% | 6.21% | 3.76% | 5.13% | 4.77% | 5.42% | 3.72% | 3.85% | 4.00% | 3.41% | 3.13% |
Drawdowns
FPE vs. IYG - Drawdown Comparison
The maximum FPE drawdown since its inception was -33.35%, smaller than the maximum IYG drawdown of -79.74%. Use the drawdown chart below to compare losses from any high point for FPE and IYG. For additional features, visit the drawdowns tool.
Volatility
FPE vs. IYG - Volatility Comparison
The current volatility for First Trust Preferred Securities & Income ETF (FPE) is 2.08%, while iShares U.S. Financial Services ETF (IYG) has a volatility of 4.02%. This indicates that FPE experiences smaller price fluctuations and is considered to be less risky than IYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.