FPEI vs. FPE

Last updated Jun 23, 2026

FPEI (First Trust Institutional Preferred Securities & Income ETF) and FPE (First Trust Preferred Securities & Income ETF) are both Preferred Stock/Convertible Bonds funds from First Trust. Both are actively managed. Over the past 5 years, FPEI returned 4.18%/yr vs 2.97%/yr for FPE. A 0.55 correlation means they provide meaningful diversification when combined. Both charge a 0.85% expense ratio.

Performance

FPEI vs. FPE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Institutional Preferred Securities & Income ETF (FPEI) and First Trust Preferred Securities & Income ETF (FPE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FPEI achieves a 1.93% return, which is significantly higher than FPE's 1.02% return.

FPEI

• 1D: -0.08%
• 1M: 0.78%
• YTD: 1.93%
• 6M: 2.08%
• 1Y: 7.95%
• 3Y*: 11.02%
• 5Y*: 4.18%
• 10Y*: —

FPE

• 1D: 0.00%
• 1M: 0.39%
• YTD: 1.02%
• 6M: 1.13%
• 1Y: 7.40%
• 3Y*: 10.50%
• 5Y*: 2.97%
• 10Y*: 5.00%

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

FPEI vs. FPE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FPEI First Trust Institutional Preferred Securities & Income ETF	1.93%	9.82%	10.94%	6.29%	-8.19%	4.63%	7.08%	15.86%	-4.29%	2.07%
FPE First Trust Preferred Securities & Income ETF	1.02%	9.21%	11.17%	6.84%	-12.77%	5.24%	6.00%	18.15%	-4.98%	1.74%

Correlation

The correlation between FPEI and FPE is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (All Time) Calculated using the full available price history since Aug 23, 2017	0.55

The correlation between FPEI and FPE shifts across timeframes, from 0.55 (all time) to 0.72 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FPEI vs. FPE — Risk / Return Rank

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

FPEI

FPEI Risk / Return Rank: 68
FPEI Sharpe Ratio Rank: 69
FPEI Sortino Ratio Rank: 81
FPEI Omega Ratio Rank: 84
FPEI Calmar Ratio Rank: 46
FPEI Martin Ratio Rank: 61

FPE

FPE Risk / Return Rank: 55
FPE Sharpe Ratio Rank: 59
FPE Sortino Ratio Rank: 60
FPE Omega Ratio Rank: 70
FPE Calmar Ratio Rank: 37
FPE Martin Ratio Rank: 50

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.

FPEI vs. FPE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Institutional Preferred Securities & Income ETF (FPEI) and First Trust Preferred Securities & Income ETF (FPE). 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	FPE	Difference
Sharpe ratio: Return per unit of total volatility	2.14	1.92	+0.22
Sortino ratio: Return per unit of downside risk	3.43	2.73	+0.70
Omega ratio: Gain probability vs. loss probability	1.48	1.40	+0.08
Calmar ratio: Return relative to maximum drawdown	2.20	1.82	+0.38
Martin ratio: Return relative to average drawdown	10.94	8.01	+2.93

FPEI vs. FPE - Sharpe Ratio Comparison

The current FPEI Sharpe Ratio is 2.14, which is comparable to the FPE Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of FPEI and FPE, 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

FPEI vs. FPE - Drawdown Comparison

The maximum FPEI drawdown since its inception was -27.51%, smaller than the maximum FPE drawdown of -33.35%. Use the drawdown chart below to compare losses from any high point for FPEI and FPE.

Drawdown Indicators

	FPEI	FPE	Difference
Max Drawdown Largest peak-to-trough decline	-27.51%	-33.35%	+5.84%
Max Drawdown (1Y) Largest decline over 1 year	-3.63%	-4.08%	+0.45%
Max Drawdown (3Y) Largest decline over 3 years	-4.26%	-4.66%	+0.40%
Max Drawdown (5Y) Largest decline over 5 years	-16.46%	-19.65%	+3.19%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.35%	—
Current Drawdown Current decline from peak	-0.10%	-0.78%	+0.68%
Average Drawdown Average peak-to-trough decline	-3.04%	-3.32%	+0.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.73%	0.93%	-0.20%

Volatility

FPEI vs. FPE - Volatility Comparison

First Trust Institutional Preferred Securities & Income ETF (FPEI) has a higher volatility of 0.82% compared to First Trust Preferred Securities & Income ETF (FPE) at 0.76%. This indicates that FPEI's price experiences larger fluctuations and is considered to be riskier than FPE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FPEI	FPE	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.82%	0.76%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	3.10%	3.11%	-0.01%
Volatility (1Y) Calculated over the trailing 1-year period	3.74%	3.88%	-0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.97%	6.62%	-0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.83%	10.18%	-1.35%

FPEI vs. FPE - Expense Ratio Comparison

Both FPEI and FPE have an expense ratio of 0.85%.

Dividends

FPEI vs. FPE - Dividend Comparison

FPEI's dividend yield for the trailing twelve months is around 5.70%, less than FPE's 5.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FPE First Trust Preferred Securities & Income ETF	5.83%	5.81%	5.68%	6.03%	5.67%	4.48%	4.88%	5.32%	6.14%	5.39%	5.97%	5.49%
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

Can I hold both FPEI and FPE in my portfolio?

FPEI and FPE have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FPEI or FPE?

FPEI has higher volatility (0.82%) compared to FPE (0.76%). In terms of maximum drawdown, FPEI dropped -27.51% vs FPE's -33.35%.

Which ETF is better, FPEI or FPE?

On 5-year performance, FPEI leads with 4.18% vs 2.97% for FPE. Both ETFs have the same 0.85% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FPEI or FPE?

Over the 5-year period, FPEI has performed better with a 4.18% return vs 2.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FPEI or FPE?

FPEI and FPE have the same expense ratio: 0.85% per year.

Which ETF pays a higher dividend yield, FPEI or FPE?

FPE has the higher dividend yield at 5.83%, compared with 5.70% for FPEI.

Which has better risk-adjusted returns?

FPEI currently has the higher Sharpe Ratio (2.14 vs 1.92), 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.