PREF vs. FPEI
PREF (Principal Spectrum Preferred Secs Active ETF) and FPEI (First Trust Institutional Preferred Securities & Income ETF) are both Preferred Stock/Convertible Bonds funds. Both are actively managed. Over the past 5 years, PREF returned 3.07%/yr vs 4.20%/yr for FPEI. At a 0.44 correlation, their price movements are largely independent. PREF charges 0.55%/yr vs 0.85%/yr for FPEI.
Performance
PREF vs. FPEI - 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 FPEI's 1.56% return.
PREF
- 1D
- -0.13%
- 1M
- 0.52%
- YTD
- 1.65%
- 6M
- 2.32%
- 1Y
- 6.65%
- 3Y*
- 9.25%
- 5Y*
- 3.07%
- 10Y*
- —
FPEI
- 1D
- -0.10%
- 1M
- 0.94%
- YTD
- 1.56%
- 6M
- 1.80%
- 1Y
- 8.60%
- 3Y*
- 10.69%
- 5Y*
- 4.20%
- 10Y*
- —
PREF vs. FPEI - 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% | 1.38% |
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% |
Correlation
The correlation between PREF and FPEI is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.42 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since Aug 24, 2017 | 0.44 |
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Return for Risk
PREF vs. FPEI — Risk / Return Rank
PREF
FPEI
PREF vs. FPEI - 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 Institutional Preferred Securities & Income ETF (FPEI). 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.
| PREF | FPEI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.18 | ||
| Sortino ratioReturn per unit of downside risk | -0.63 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.54 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.32 | 2.38 | -0.06 |
| Martin ratioReturn relative to average drawdown | 12.09 | 11.84 | +0.25 |
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
| PREF | FPEI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.16 | 2.34 | -0.18 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.63 | 0.71 | -0.07 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.66 | 0.57 | +0.10 |
Drawdowns
PREF vs. FPEI - Drawdown Comparison
The maximum PREF drawdown since its inception was -22.99%, smaller than the maximum FPEI drawdown of -27.51%. Use the drawdown chart below to compare losses from any high point for PREF and FPEI.
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Drawdown Indicators
| PREF | FPEI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.99% | -27.51% | +4.52% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -3.63% | +0.75% |
Max Drawdown (3Y)Largest decline over 3 years | -4.39% | -4.26% | -0.13% |
Max Drawdown (5Y)Largest decline over 5 years | -16.99% | -16.46% | -0.53% |
Current DrawdownCurrent decline from peak | -0.13% | -0.16% | +0.03% |
Average DrawdownAverage peak-to-trough decline | -3.66% | -3.06% | -0.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.55% | 0.73% | -0.18% |
Volatility
PREF vs. FPEI - Volatility Comparison
The current volatility for Principal Spectrum Preferred Secs Active ETF (PREF) is 0.69%, while First Trust Institutional Preferred Securities & Income ETF (FPEI) has a volatility of 0.95%. This indicates that PREF experiences smaller price fluctuations and is considered to be less risky than FPEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PREF | FPEI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.69% | 0.95% | -0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 2.51% | 3.06% | -0.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.09% | 3.69% | -0.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.87% | 5.97% | -1.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.30% | 8.86% | -2.56% |
PREF vs. FPEI - Expense Ratio Comparison
PREF has a 0.55% expense ratio, which is lower than FPEI's 0.85% expense ratio.
Dividends
PREF vs. FPEI - Dividend Comparison
PREF's dividend yield for the trailing twelve months is around 5.16%, less than FPEI's 5.72% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
PREF Principal Spectrum Preferred Secs Active ETF | 5.16% | 4.87% | 4.65% | 4.67% | 4.63% | 4.07% | 4.35% | 4.67% | 5.49% | 2.35% |
Frequently Asked Questions
PREF and FPEI have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FPEI has higher volatility (0.95%) compared to PREF (0.69%). In terms of maximum drawdown, PREF dropped -22.99% vs FPEI's -27.51%.
On 5-year performance, FPEI leads with 4.20% vs 3.07% for PREF. On fees, PREF is cheaper at 0.55% per year. On volatility, PREF has been the lower-risk option at 0.69%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FPEI has performed better with a 4.20% return vs 3.07%. 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 FPEI.
FPEI has the higher dividend yield at 5.72%, compared with 5.16% for PREF.
They also come from different issuers: Principal and First Trust. Their fees differ too: 0.55% for PREF and 0.85% for FPEI.
FPEI currently has the higher Sharpe Ratio (2.34 vs 2.16), 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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