PREF vs. FPE
PREF (Principal Spectrum Preferred Secs Active ETF) and FPE (First Trust Preferred Securities & Income ETF) are both Preferred Stock funds. Both are actively managed. Over the past 5 years, PREF returned 2.80%/yr vs 2.72%/yr for FPE. Their 0.44 correlation means their historical movements had little consistent relationship. PREF charges 0.55%/yr vs 0.85%/yr for FPE.
Performance
PREF vs. FPE - Performance Comparison
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Returns By Period
In the year-to-date period, PREF achieves a 1.65% return, which is significantly higher than FPE's 0.79% return.
PREF
- 1D
- 0.08%
- 1M
- -0.55%
- 6M
- 1.33%
- YTD
- 1.65%
- 1Y
- 4.94%
- 3Y*
- 8.21%
- 5Y*
- 2.80%
- 10Y*
- —
- ALL TIME*
- 4.08%
FPE
- 1D
- 0.11%
- 1M
- -0.55%
- 6M
- -0.02%
- YTD
- 0.79%
- 1Y
- 5.35%
- 3Y*
- 9.22%
- 5Y*
- 2.72%
- 10Y*
- 4.71%
- ALL TIME*
- 4.77%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $16.81M | $16.95M | $17.82M | |
| $3.81M | $4.18M | $4.46M |
PREF vs. FPE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PREF Principal Spectrum Preferred Secs Active ETF | 1.65% | 7.64% | 11.43% | 7.36% | -11.80% | 2.08% | 7.52% | 17.32% | -5.45% | 2.05% |
FPE First Trust Preferred Securities & Income ETF | 0.79% | 9.21% | 11.17% | 6.84% | -12.77% | 5.24% | 6.00% | 18.15% | -4.98% | 1.84% |
Correlation
The correlation between PREF and FPE is 0.52, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.52 |
Correlation (3Y) Balances recent behavior with more history. | 0.46 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.53 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2017 | 0.44 |
The correlation between PREF and FPE has been stable across timeframes, ranging from 0.44 to 0.53 - a consistent structural relationship.
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Return for Risk
PREF vs. FPE — Risk / Return Rank
PREF
FPE
PREF vs. FPE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred Secs Active ETF (PREF) 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.
| PREF | FPE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.32 | ||
| Sortino ratioReturn per unit of downside risk | +0.46 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.26 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 1.26 | +0.50 |
| Martin ratioReturn relative to average drawdown | 8.92 | 5.33 | +3.59 |
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Drawdowns
PREF vs. FPE - Drawdown Comparison
The maximum PREF drawdown since its inception was -22.99%, smaller than the maximum FPE drawdown of -33.35%. Use the drawdown chart below to compare losses from any high point for PREF and FPE.
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Drawdown Indicators
| PREF | FPE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.99% | -33.35% | +10.36% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -4.08% | +1.20% |
Max Drawdown (3Y)Largest decline over 3 years | -4.30% | -4.66% | +0.36% |
Max Drawdown (5Y)Largest decline over 5 years | -16.99% | -19.65% | +2.66% |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.35% | — |
Current DrawdownCurrent decline from peak | -0.63% | -1.01% | +0.38% |
Average DrawdownAverage peak-to-trough decline | -3.60% | -3.30% | -0.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.57% | 0.96% | -0.39% |
Volatility
PREF vs. FPE - Volatility Comparison
The current volatility for Principal Spectrum Preferred Secs Active ETF (PREF) is 0.57%, while First Trust Preferred Securities & Income ETF (FPE) has a volatility of 0.86%. This indicates that PREF 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.
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Volatility by Period
| PREF | FPE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.57% | 0.86% | -0.29% |
Volatility (6M)Calculated over the trailing 6-month period | 2.46% | 3.17% | -0.71% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.11% | 3.92% | -0.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.87% | 6.63% | -1.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.25% | 10.17% | -3.92% |
PREF vs. FPE - Expense Ratio Comparison
PREF has a 0.55% expense ratio, which is lower than FPE's 0.85% expense ratio.
Dividends
PREF vs. FPE - Dividend Comparison
PREF's dividend yield for the trailing twelve months is around 5.22%, less than FPE's 6.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FPE First Trust Preferred Securities & Income ETF | 6.01% | 5.81% | 5.68% | 6.03% | 5.67% | 4.48% | 4.88% | 5.32% | 6.14% | 5.39% | 5.97% | 5.49% |
PREF Principal Spectrum Preferred Secs Active ETF | 4.81% | 4.87% | 4.65% | 4.67% | 4.63% | 4.07% | 4.35% | 4.67% | 5.49% | 2.35% | 0.00% | 0.00% |
Frequently Asked Questions
PREF and FPE have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FPE has higher volatility (0.86%) compared to PREF (0.57%). In terms of maximum drawdown, PREF dropped -22.99% vs FPE's -33.35%.
On 5-year performance, PREF leads with 2.80% vs 2.72% for FPE. On fees, PREF is cheaper at 0.55% per year. On volatility, PREF has been the lower-risk option at 0.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, PREF has performed better with a 2.80% return vs 2.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PREF is cheaper with a 0.55% expense ratio, compared with 0.85% for FPE.
FPE has the higher dividend yield at 6.01%, compared with 4.81% for PREF.
They also come from different issuers: Principal and First Trust. Their fees differ too: 0.55% for PREF and 0.85% for FPE.
PREF currently has the higher Sharpe Ratio (1.63 vs 1.31), 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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