FPEI vs. SPY
FPEI (First Trust Institutional Preferred Securities & Income ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - FPEI is a Preferred Stock/Convertible Bonds fund actively managed by First Trust, while SPY is a S&P 500 fund tracking the S&P 500 Index. FPEI is actively managed, while SPY is passively managed. Over the past 5 years, FPEI returned 4.20%/yr vs 13.83%/yr for SPY. At a 0.45 correlation, their price movements are largely independent. FPEI charges 0.85%/yr vs 0.09%/yr for SPY.
Performance
FPEI vs. SPY - Performance Comparison
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Returns By Period
In the year-to-date period, FPEI achieves a 1.56% return, which is significantly lower than SPY's 10.91% return.
FPEI
- 1D
- -0.10%
- 1M
- 0.94%
- YTD
- 1.56%
- 6M
- 1.80%
- 1Y
- 8.60%
- 3Y*
- 10.69%
- 5Y*
- 4.20%
- 10Y*
- —
SPY
- 1D
- -0.70%
- 1M
- 5.05%
- YTD
- 10.91%
- 6M
- 10.91%
- 1Y
- 27.98%
- 3Y*
- 22.35%
- 5Y*
- 13.83%
- 10Y*
- 15.49%
FPEI vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FPEI First Trust Institutional Preferred Securities & Income ETF | 1.56% | 9.82% | 10.94% | 6.29% | -8.19% | 4.63% | 7.08% | 15.86% | -4.29% | 2.23% |
SPY State Street SPDR S&P 500 ETF | 10.91% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 10.22% |
Correlation
The correlation between FPEI and SPY is 0.60, 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 | 0.60 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Aug 24, 2017 | 0.45 |
The correlation between FPEI and SPY shifts across timeframes, from 0.45 (all time) to 0.60 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
FPEI vs. SPY — Risk / Return Rank
FPEI
SPY
FPEI vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Institutional Preferred Securities & Income ETF (FPEI) and State Street SPDR S&P 500 ETF (SPY). 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.
| FPEI | SPY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.04 | ||
| Sortino ratioReturn per unit of downside risk | +0.49 | ||
| Omega ratioGain probability vs. loss probability | 1.54 | 1.43 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.38 | 3.16 | -0.78 |
| Martin ratioReturn relative to average drawdown | 11.84 | 14.72 | -2.88 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FPEI | SPY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.34 | 2.38 | -0.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.71 | 0.82 | -0.11 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.87 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.57 | 0.59 | -0.02 |
Drawdowns
FPEI vs. SPY - Drawdown Comparison
The maximum FPEI drawdown since its inception was -27.51%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for FPEI and SPY.
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Drawdown Indicators
| FPEI | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.51% | -55.19% | +27.68% |
Max Drawdown (1Y)Largest decline over 1 year | -3.63% | -8.88% | +5.25% |
Max Drawdown (3Y)Largest decline over 3 years | -4.26% | -18.76% | +14.50% |
Max Drawdown (5Y)Largest decline over 5 years | -16.46% | -24.50% | +8.04% |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.72% | — |
Current DrawdownCurrent decline from peak | -0.16% | -0.70% | +0.54% |
Average DrawdownAverage peak-to-trough decline | -3.06% | -9.05% | +5.99% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.73% | 1.91% | -1.18% |
Volatility
FPEI vs. SPY - Volatility Comparison
The current volatility for First Trust Institutional Preferred Securities & Income ETF (FPEI) is 0.95%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 2.84%. This indicates that FPEI experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FPEI | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.95% | 2.84% | -1.89% |
Volatility (6M)Calculated over the trailing 6-month period | 3.06% | 8.90% | -5.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.69% | 11.83% | -8.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.97% | 17.05% | -11.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.86% | 17.94% | -9.08% |
FPEI vs. SPY - Expense Ratio Comparison
FPEI has a 0.85% expense ratio, which is higher than SPY's 0.09% expense ratio.
Dividends
FPEI vs. SPY - Dividend Comparison
FPEI's dividend yield for the trailing twelve months is around 5.72%, more than SPY's 0.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FPEI First Trust Institutional Preferred Securities & Income ETF | 5.72% | 5.62% | 5.55% | 5.76% | 5.20% | 4.46% | 4.90% | 5.02% | 5.81% | 1.50% | 0.00% | 0.00% |
SPY State Street SPDR S&P 500 ETF | 0.98% | 1.07% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% |
Frequently Asked Questions
FPEI and SPY have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPY has higher volatility (2.84%) compared to FPEI (0.95%). In terms of maximum drawdown, FPEI dropped -27.51% vs SPY's -55.19%.
On 5-year performance, SPY leads with 13.83% vs 4.20% for FPEI. On fees, SPY is cheaper at 0.09% per year. On volatility, FPEI has been the lower-risk option at 0.95%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SPY has performed better with a 13.83% return vs 4.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPY is cheaper with a 0.09% expense ratio, compared with 0.85% for FPEI.
FPEI has the higher dividend yield at 5.72%, compared with 0.98% for SPY.
FPEI is categorized as Preferred Stock/Convertible Bonds, while SPY is S&P 500. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.85% for FPEI and 0.09% for SPY.
SPY currently has the higher Sharpe Ratio (2.38 vs 2.34), 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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