PCEF vs. FCEF

Last updated Jun 4, 2026

PCEF (Invesco CEF Income Composite ETF) and FCEF (First Trust CEF Income Opportunity ETF) are both Diversified Portfolio funds. PCEF is passively managed, while FCEF is actively managed. Over the past 5 years, PCEF returned 4.82%/yr vs 5.84%/yr for FCEF. Their correlation of 0.80 suggests significant overlap in exposure. PCEF charges 2.71%/yr vs 2.91%/yr for FCEF.

Performance

PCEF vs. FCEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco CEF Income Composite ETF (PCEF) and First Trust CEF Income Opportunity ETF (FCEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PCEF achieves a 4.88% return, which is significantly lower than FCEF's 6.40% return.

PCEF

• 1D: -0.74%
• 1M: 2.15%
• YTD: 4.88%
• 6M: 5.42%
• 1Y: 14.12%
• 3Y*: 13.61%
• 5Y*: 4.82%
• 10Y*: 7.33%

FCEF

• 1D: -0.58%
• 1M: 0.80%
• YTD: 6.40%
• 6M: 7.10%
• 1Y: 16.10%
• 3Y*: 15.70%
• 5Y*: 5.84%
• 10Y*: —

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

PCEF vs. FCEF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PCEF Invesco CEF Income Composite ETF	4.88%	12.59%	16.70%	9.39%	-18.66%	15.38%	4.61%	24.08%	-8.88%	14.48%
FCEF First Trust CEF Income Opportunity ETF	6.40%	14.39%	17.51%	10.27%	-19.51%	19.50%	3.80%	28.28%	-9.65%	15.72%

Correlation

The correlation between PCEF and FCEF is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (All Time) Calculated using the full available price history since Sep 30, 2016	0.80

The correlation between PCEF and FCEF has been stable across timeframes, ranging from 0.80 to 0.84 - a consistent structural relationship.

PCEF vs. FCEF - Sectors Allocation Comparison

Sectors	PCEF	FCEF
Financial Services	37.2%	25.5%
Technology	22.0%	11.9%
Communication Services	7.0%	4.4%
Healthcare	6.7%	9.2%
Industrials	6.5%	8.5%
Consumer Cyclical	6.0%	3.7%
Energy	4.2%	13.6%
Utilities	3.5%	15.0%
Consumer Defensive	3.2%	2.1%
Basic Materials	2.8%	2.7%
Real Estate	0.9%	3.5%

Return for Risk

PCEF vs. FCEF — Risk / Return Rank

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

PCEF

PCEF Risk / Return Rank: 45
PCEF Sharpe Ratio Rank: 47
PCEF Sortino Ratio Rank: 47
PCEF Omega Ratio Rank: 49
PCEF Calmar Ratio Rank: 34
PCEF Martin Ratio Rank: 48

FCEF

FCEF Risk / Return Rank: 59
FCEF Sharpe Ratio Rank: 62
FCEF Sortino Ratio Rank: 61
FCEF Omega Ratio Rank: 65
FCEF Calmar Ratio Rank: 46
FCEF Martin Ratio Rank: 59

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.

PCEF vs. FCEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco CEF Income Composite ETF (PCEF) and First Trust CEF Income Opportunity ETF (FCEF). 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.

	PCEF	FCEF	Difference
Sharpe ratio: Return per unit of total volatility	1.65	2.09	-0.44
Sortino ratio: Return per unit of downside risk	2.36	2.90	-0.54
Omega ratio: Gain probability vs. loss probability	1.31	1.39	-0.08
Calmar ratio: Return relative to maximum drawdown	1.71	2.30	-0.59
Martin ratio: Return relative to average drawdown	8.00	10.40	-2.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PCEF vs. FCEF - Sharpe Ratio Comparison

The current PCEF Sharpe Ratio is 1.65, which is comparable to the FCEF Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of PCEF and FCEF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PCEF	FCEF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.65	2.09	-0.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.48	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.53	+0.04

Drawdowns

PCEF vs. FCEF - Drawdown Comparison

The maximum PCEF drawdown since its inception was -38.64%, smaller than the maximum FCEF drawdown of -44.81%. Use the drawdown chart below to compare losses from any high point for PCEF and FCEF.

Drawdown Indicators

	PCEF	FCEF	Difference
Max Drawdown Largest peak-to-trough decline	-38.64%	-44.81%	+6.17%
Max Drawdown (1Y) Largest decline over 1 year	-8.30%	-7.03%	-1.27%
Max Drawdown (3Y) Largest decline over 3 years	-14.09%	-12.39%	-1.70%
Max Drawdown (5Y) Largest decline over 5 years	-24.25%	-25.32%	+1.07%
Max Drawdown (10Y) Largest decline over 10 years	-38.64%	—	—
Current Drawdown Current decline from peak	-0.74%	-1.13%	+0.39%
Average Drawdown Average peak-to-trough decline	-4.47%	-6.28%	+1.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.77%	1.55%	+0.22%

Volatility

PCEF vs. FCEF - Volatility Comparison

Invesco CEF Income Composite ETF (PCEF) has a higher volatility of 2.50% compared to First Trust CEF Income Opportunity ETF (FCEF) at 2.11%. This indicates that PCEF's price experiences larger fluctuations and is considered to be riskier than FCEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PCEF	FCEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.50%	2.11%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	7.30%	6.18%	+1.12%
Volatility (1Y) Calculated over the trailing 1-year period	8.61%	7.75%	+0.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.48%	12.19%	-0.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.29%	15.42%	-2.13%

PCEF vs. FCEF - Expense Ratio Comparison

PCEF has a 2.71% expense ratio, which is lower than FCEF's 2.91% expense ratio.

Dividends

PCEF vs. FCEF - Dividend Comparison

PCEF's dividend yield for the trailing twelve months is around 7.73%, more than FCEF's 6.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FCEF First Trust CEF Income Opportunity ETF	6.86%	7.05%	7.13%	7.17%	7.26%	4.74%	5.03%	5.07%	5.96%	4.90%	1.51%	0.00%
PCEF Invesco CEF Income Composite ETF	7.73%	7.96%	8.79%	9.86%	8.93%	6.67%	7.54%	7.12%	8.21%	6.96%	7.72%	9.18%

Frequently Asked Questions

Can I hold both PCEF and FCEF in my portfolio?

PCEF and FCEF have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PCEF or FCEF?

PCEF has higher volatility (2.50%) compared to FCEF (2.11%). In terms of maximum drawdown, PCEF dropped -38.64% vs FCEF's -44.81%.

Which ETF is better, PCEF or FCEF?

On 5-year performance, FCEF leads with 5.84% vs 4.82% for PCEF. On fees, PCEF is cheaper at 2.71% per year. On volatility, FCEF has been the lower-risk option at 2.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PCEF or FCEF?

Over the 5-year period, FCEF has performed better with a 5.84% return vs 4.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PCEF or FCEF?

PCEF is cheaper with a 2.71% expense ratio, compared with 2.91% for FCEF.

Which ETF pays a higher dividend yield, PCEF or FCEF?

PCEF has the higher dividend yield at 7.73%, compared with 6.86% for FCEF.

What is the main difference between PCEF and FCEF?

They also come from different issuers: Invesco and First Trust. Their fees differ too: 2.71% for PCEF and 2.91% for FCEF.

Which has better risk-adjusted returns?

FCEF currently has the higher Sharpe Ratio (2.09 vs 1.65), 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.