FPEI vs. BND
FPEI (First Trust Institutional Preferred Securities & Income ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - FPEI is a Preferred Stock/Convertible Bonds fund actively managed by First Trust, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. FPEI is actively managed, while BND is passively managed. Over the past 5 years, FPEI returned 4.19%/yr vs 0.18%/yr for BND. At a 0.26 correlation, their price movements are largely independent. FPEI charges 0.85%/yr vs 0.03%/yr for BND.
Performance
FPEI vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, FPEI achieves a 2.03% return, which is significantly higher than BND's 0.94% return.
FPEI
- 1D
- 0.08%
- 1M
- 0.89%
- YTD
- 2.03%
- 6M
- 1.93%
- 1Y
- 7.87%
- 3Y*
- 11.06%
- 5Y*
- 4.19%
- 10Y*
- —
BND
- 1D
- 0.45%
- 1M
- 1.09%
- YTD
- 0.94%
- 6M
- 0.78%
- 1Y
- 4.38%
- 3Y*
- 4.11%
- 5Y*
- 0.18%
- 10Y*
- 1.60%
FPEI vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FPEI First Trust Institutional Preferred Securities & Income ETF | 2.03% | 9.82% | 10.94% | 6.29% | -8.19% | 4.63% | 7.08% | 15.86% | -4.29% | 2.07% |
BND Vanguard Total Bond Market ETF | 0.94% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 0.44% |
Correlation
The correlation between FPEI and BND is 0.50, 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 | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.41 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.35 |
Correlation (All Time) Calculated using the full available price history since Aug 23, 2017 | 0.26 |
Over the past year, FPEI and BND have become more correlated (0.50) than their long-term average of 0.26, meaning their price movements have been converging.
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Return for Risk
FPEI vs. BND — Risk / Return Rank
FPEI
BND
FPEI vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Institutional Preferred Securities & Income ETF (FPEI) and Vanguard Total Bond Market ETF (BND). 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.
| FPEI | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.94 | ||
| Sortino ratioReturn per unit of downside risk | +1.63 | ||
| Omega ratioGain probability vs. loss probability | 1.48 | 1.21 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 2.18 | 1.64 | +0.53 |
| Martin ratioReturn relative to average drawdown | 10.81 | 4.68 | +6.14 |
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Drawdowns
FPEI vs. BND - Drawdown Comparison
The maximum FPEI drawdown since its inception was -27.51%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for FPEI and BND.
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Drawdown Indicators
| FPEI | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.51% | -18.58% | -8.93% |
Max Drawdown (1Y)Largest decline over 1 year | -3.63% | -2.68% | -0.95% |
Max Drawdown (3Y)Largest decline over 3 years | -4.26% | -5.92% | +1.66% |
Max Drawdown (5Y)Largest decline over 5 years | -16.46% | -17.91% | +1.45% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.58% | — |
Current DrawdownCurrent decline from peak | -0.00% | -1.71% | +1.71% |
Average DrawdownAverage peak-to-trough decline | -3.04% | -3.06% | +0.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.73% | 0.94% | -0.21% |
Volatility
FPEI vs. BND - Volatility Comparison
The current volatility for First Trust Institutional Preferred Securities & Income ETF (FPEI) is 0.81%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.15%. This indicates that FPEI experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FPEI | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.81% | 1.15% | -0.34% |
Volatility (6M)Calculated over the trailing 6-month period | 3.09% | 2.80% | +0.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.73% | 3.75% | -0.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.97% | 6.03% | -0.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.83% | 5.53% | +3.30% |
FPEI vs. BND - Expense Ratio Comparison
FPEI has a 0.85% expense ratio, which is higher than BND's 0.03% expense ratio.
Dividends
FPEI vs. BND - Dividend Comparison
FPEI's dividend yield for the trailing twelve months is around 5.70%, more than BND's 3.94% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.94% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
FPEI First Trust Institutional Preferred Securities & Income ETF | 5.70% | 5.62% | 5.55% | 5.76% | 5.20% | 4.46% | 4.90% | 5.02% | 5.81% | 1.50% | 0.00% | 0.00% |
Frequently Asked Questions
FPEI and BND have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.15%) compared to FPEI (0.81%). In terms of maximum drawdown, FPEI dropped -27.51% vs BND's -18.58%.
On 5-year performance, FPEI leads with 4.19% vs 0.18% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, FPEI has been the lower-risk option at 0.81%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FPEI has performed better with a 4.19% return vs 0.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.85% for FPEI.
FPEI has the higher dividend yield at 5.70%, compared with 3.94% for BND.
FPEI is categorized as Preferred Stock/Convertible Bonds, while BND is Total Bond Market. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.85% for FPEI and 0.03% for BND.
FPEI currently has the higher Sharpe Ratio (2.12 vs 1.18), 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.
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