FPEI vs. VRP
Compare and contrast key facts about First Trust Institutional Preferred Securities & Income ETF (FPEI) and Invesco Variable Rate Preferred ETF (VRP).
FPEI and VRP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FPEI is an actively managed fund by First Trust. It was launched on Aug 22, 2017. VRP is a passively managed fund by Invesco that tracks the performance of the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. It was launched on May 1, 2014.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FPEI or VRP.
Key characteristics
| FPEI | VRP | |
|---|---|---|
| YTD Return | 10.91% | 11.33% |
| 1Y Return | 17.90% | 16.67% |
| 3Y Return (Ann) | 2.66% | 3.82% |
| 5Y Return (Ann) | 4.24% | 4.39% |
| Sharpe Ratio | 4.94 | 3.80 |
| Sortino Ratio | 8.24 | 5.76 |
| Omega Ratio | 2.18 | 1.80 |
| Calmar Ratio | 2.10 | 3.59 |
| Martin Ratio | 39.42 | 39.77 |
| Ulcer Index | 0.48% | 0.44% |
| Daily Std Dev | 3.75% | 4.58% |
| Max Drawdown | -27.51% | -46.04% |
| Current Drawdown | -0.57% | -0.12% |
Correlation
The correlation between FPEI and VRP is 0.44, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
FPEI vs. VRP - Performance Comparison
The year-to-date returns for both investments are quite close, with FPEI having a 10.91% return and VRP slightly higher at 11.33%. 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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FPEI vs. VRP - Expense Ratio Comparison
FPEI has a 0.85% expense ratio, which is higher than VRP's 0.50% expense ratio.
Risk-Adjusted Performance
FPEI vs. VRP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Institutional Preferred Securities & Income ETF (FPEI) and Invesco Variable Rate Preferred ETF (VRP). 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
FPEI vs. VRP - Dividend Comparison
FPEI's dividend yield for the trailing twelve months is around 5.49%, less than VRP's 5.93% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
FPEI First Trust Institutional Preferred Securities & Income ETF | 5.49% | 5.75% | 5.20% | 4.46% | 4.91% | 5.02% | 5.83% | 1.49% | 0.00% | 0.00% | 0.00% |
VRP Invesco Variable Rate Preferred ETF | 5.93% | 6.61% | 5.38% | 4.26% | 4.18% | 5.15% | 5.28% | 4.68% | 5.10% | 5.02% | 3.04% |
Drawdowns
FPEI vs. VRP - Drawdown Comparison
The maximum FPEI drawdown since its inception was -27.51%, smaller than the maximum VRP drawdown of -46.04%. Use the drawdown chart below to compare losses from any high point for FPEI and VRP. For additional features, visit the drawdowns tool.
Volatility
FPEI vs. VRP - Volatility Comparison
The current volatility for First Trust Institutional Preferred Securities & Income ETF (FPEI) is 0.77%, while Invesco Variable Rate Preferred ETF (VRP) has a volatility of 1.11%. This indicates that FPEI experiences smaller price fluctuations and is considered to be less risky than VRP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.