PPSIX vs. FPE

Last updated Jun 23, 2026

PPSIX (Principal Spectrum Preferred and Capital Securities Income Fund) and FPE (First Trust Preferred Securities & Income ETF) are both Preferred Stock/Convertible Bonds funds. Over the past 10 years, PPSIX returned 4.34%/yr vs 5.00%/yr for FPE. A 0.57 correlation means they provide meaningful diversification when combined. PPSIX charges 0.79%/yr vs 0.85%/yr for FPE.

Performance

PPSIX vs. FPE - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with PPSIX having a 1.01% return and FPE slightly higher at 1.02%. Over the past 10 years, PPSIX has underperformed FPE with an annualized return of 4.34%, while FPE has yielded a comparatively higher 5.00% annualized return.

PPSIX

• 1D: 0.00%
• 1M: 0.56%
• YTD: 1.01%
• 6M: 1.19%
• 1Y: 5.81%
• 3Y*: 8.29%
• 5Y*: 2.66%
• 10Y*: 4.34%

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)

PPSIX vs. FPE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PPSIX Principal Spectrum Preferred and Capital Securities Income Fund	1.01%	7.86%	9.82%	5.88%	-10.67%	3.03%	5.47%	16.45%	-4.54%	10.51%
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%	11.26%

Correlation

The correlation between PPSIX and FPE is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.60
Correlation (All Time) Calculated using the full available price history since Feb 12, 2013	0.57

The correlation between PPSIX and FPE shifts across timeframes, from 0.57 (all time) to 0.71 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

PPSIX vs. FPE — Risk / Return Rank

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

PPSIX

PPSIX Risk / Return Rank: 62
PPSIX Sharpe Ratio Rank: 80
PPSIX Sortino Ratio Rank: 79
PPSIX Omega Ratio Rank: 87
PPSIX Calmar Ratio Rank: 27
PPSIX Martin Ratio Rank: 35

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.

PPSIX vs. FPE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred and Capital Securities Income Fund (PPSIX) 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.

	PPSIX	FPE	Difference
Sharpe ratio: Return per unit of total volatility	2.42	1.92	+0.50
Sortino ratio: Return per unit of downside risk	3.45	2.73	+0.72
Omega ratio: Gain probability vs. loss probability	1.57	1.40	+0.17
Calmar ratio: Return relative to maximum drawdown	1.83	1.82	+0.01
Martin ratio: Return relative to average drawdown	7.39	8.01	-0.61

PPSIX vs. FPE - Sharpe Ratio Comparison

The current PPSIX Sharpe Ratio is 2.42, which is comparable to the FPE Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of PPSIX 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

PPSIX vs. FPE - Drawdown Comparison

The maximum PPSIX drawdown since its inception was -52.75%, which is greater than FPE's maximum drawdown of -33.35%. Use the drawdown chart below to compare losses from any high point for PPSIX and FPE.

Drawdown Indicators

	PPSIX	FPE	Difference
Max Drawdown Largest peak-to-trough decline	-52.75%	-33.35%	-19.40%
Max Drawdown (1Y) Largest decline over 1 year	-3.18%	-4.08%	+0.90%
Max Drawdown (3Y) Largest decline over 3 years	-3.35%	-4.66%	+1.31%
Max Drawdown (5Y) Largest decline over 5 years	-17.37%	-19.65%	+2.28%
Max Drawdown (10Y) Largest decline over 10 years	-22.82%	-33.35%	+10.53%
Current Drawdown Current decline from peak	-0.60%	-0.78%	+0.18%
Average Drawdown Average peak-to-trough decline	-3.28%	-3.32%	+0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	0.93%	-0.14%

Volatility

PPSIX vs. FPE - Volatility Comparison

The current volatility for Principal Spectrum Preferred and Capital Securities Income Fund (PPSIX) is 0.62%, while First Trust Preferred Securities & Income ETF (FPE) has a volatility of 0.76%. This indicates that PPSIX experiences smaller price fluctuations and is considered to be less risky than FPE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPSIX	FPE	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.62%	0.76%	-0.14%
Volatility (6M) Calculated over the trailing 6-month period	2.09%	3.11%	-1.02%
Volatility (1Y) Calculated over the trailing 1-year period	2.41%	3.88%	-1.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.23%	6.62%	-2.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.35%	10.18%	-4.83%

PPSIX vs. FPE - Expense Ratio Comparison

PPSIX has a 0.79% expense ratio, which is lower than FPE's 0.85% expense ratio.

Dividends

PPSIX vs. FPE - Dividend Comparison

PPSIX's dividend yield for the trailing twelve months is around 5.36%, 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%
PPSIX Principal Spectrum Preferred and Capital Securities Income Fund	5.36%	5.59%	5.34%	4.82%	5.54%	4.39%	4.44%	4.87%	5.79%	5.04%	5.86%	6.09%

Frequently Asked Questions

Can I hold both PPSIX and FPE in my portfolio?

PPSIX and FPE have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PPSIX or FPE?

FPE has higher volatility (0.76%) compared to PPSIX (0.62%). In terms of maximum drawdown, PPSIX dropped -52.75% vs FPE's -33.35%.

Which has better risk-adjusted returns?

PPSIX currently has the higher Sharpe Ratio (2.42 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.