PRFD vs. FPE

Last updated Jun 4, 2026

PRFD (PIMCO Preferred And Capital Securities Active Exchange-Traded Fund) and FPE (First Trust Preferred Securities & Income ETF) are both Preferred Stock/Convertible Bonds funds. Both are actively managed. Over the past 3 years, PRFD returned 9.23%/yr vs 10.04%/yr for FPE. A 0.62 correlation means they provide meaningful diversification when combined. PRFD charges 0.74%/yr vs 0.85%/yr for FPE.

Performance

PRFD vs. FPE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) and First Trust Preferred Securities & Income ETF (FPE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PRFD achieves a 1.40% return, which is significantly higher than FPE's 0.97% return.

PRFD

• 1D: -0.20%
• 1M: 0.36%
• YTD: 1.40%
• 6M: 1.56%
• 1Y: 8.04%
• 3Y*: 9.23%
• 5Y*: —
• 10Y*: —

FPE

• 1D: -0.11%
• 1M: 0.16%
• YTD: 0.97%
• 6M: 1.26%
• 1Y: 8.50%
• 3Y*: 10.04%
• 5Y*: 3.08%
• 10Y*: 5.04%

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

PRFD vs. FPE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PRFD PIMCO Preferred And Capital Securities Active Exchange-Traded Fund	1.40%	8.45%	9.92%	1.83%
FPE First Trust Preferred Securities & Income ETF	0.97%	9.21%	11.17%	0.55%

Correlation

The correlation between PRFD and FPE is 0.54, 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	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (All Time) Calculated using the full available price history since Jan 20, 2023	0.62

The correlation between PRFD and FPE has been stable across timeframes, ranging from 0.54 to 0.62 - a consistent structural relationship.

PRFD vs. FPE - Sectors Allocation Comparison

Sectors	PRFD	FPE
Financial Services	2.0%	9.2%
Communication Services	0.3%	0.4%
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	0.8%
Energy	-	-
Healthcare	-	-
Industrials	-	0.4%
Real Estate	-	2.3%
Technology	-	-
Utilities	-	3.1%

Return for Risk

PRFD vs. FPE — Risk / Return Rank

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

PRFD

PRFD Risk / Return Rank: 69
PRFD Sharpe Ratio Rank: 77
PRFD Sortino Ratio Rank: 78
PRFD Omega Ratio Rank: 84
PRFD Calmar Ratio Rank: 50
PRFD Martin Ratio Rank: 58

FPE

FPE Risk / Return Rank: 61
FPE Sharpe Ratio Rank: 65
FPE Sortino Ratio Rank: 67
FPE Omega Ratio Rank: 77
FPE Calmar Ratio Rank: 42
FPE Martin Ratio Rank: 54

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.

PRFD vs. FPE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) 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.

	PRFD	FPE	Difference
Sharpe ratio: Return per unit of total volatility	2.51	2.22	+0.30
Sortino ratio: Return per unit of downside risk	3.51	3.15	+0.36
Omega ratio: Gain probability vs. loss probability	1.51	1.47	+0.04
Calmar ratio: Return relative to maximum drawdown	2.46	2.09	+0.37
Martin ratio: Return relative to average drawdown	10.14	9.47	+0.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PRFD vs. FPE - Sharpe Ratio Comparison

The current PRFD Sharpe Ratio is 2.51, which is comparable to the FPE Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of PRFD 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.

Sharpe Ratios by Period

	PRFD	FPE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.51	2.22	+0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.47	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.50	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.31	0.53	+0.78

Drawdowns

PRFD vs. FPE - Drawdown Comparison

The maximum PRFD drawdown since its inception was -11.93%, smaller than the maximum FPE drawdown of -33.35%. Use the drawdown chart below to compare losses from any high point for PRFD and FPE.

Drawdown Indicators

	PRFD	FPE	Difference
Max Drawdown Largest peak-to-trough decline	-11.93%	-33.35%	+21.42%
Max Drawdown (1Y) Largest decline over 1 year	-3.28%	-4.08%	+0.80%
Max Drawdown (3Y) Largest decline over 3 years	-6.28%	-4.66%	-1.62%
Max Drawdown (5Y) Largest decline over 5 years	—	-19.65%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.35%	—
Current Drawdown Current decline from peak	-0.61%	-0.84%	+0.23%
Average Drawdown Average peak-to-trough decline	-2.23%	-3.33%	+1.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	0.90%	-0.11%

Volatility

PRFD vs. FPE - Volatility Comparison

PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) has a higher volatility of 1.19% compared to First Trust Preferred Securities & Income ETF (FPE) at 1.10%. This indicates that PRFD's price experiences larger fluctuations and is considered to be riskier than FPE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PRFD	FPE	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.19%	1.10%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	2.68%	3.09%	-0.41%
Volatility (1Y) Calculated over the trailing 1-year period	3.21%	3.85%	-0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.88%	6.61%	-1.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.88%	10.17%	-5.29%

PRFD vs. FPE - Expense Ratio Comparison

PRFD has a 0.74% expense ratio, which is lower than FPE's 0.85% expense ratio.

Dividends

PRFD vs. FPE - Dividend Comparison

PRFD's dividend yield for the trailing twelve months is around 5.77%, less than FPE's 5.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FPE First Trust Preferred Securities & Income ETF	5.84%	5.81%	5.68%	6.03%	5.67%	4.48%	4.88%	5.32%	6.14%	5.39%	5.97%	5.49%
PRFD PIMCO Preferred And Capital Securities Active Exchange-Traded Fund	5.77%	5.63%	5.53%	5.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PRFD and FPE in my portfolio?

PRFD and FPE have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PRFD or FPE?

PRFD has higher volatility (1.19%) compared to FPE (1.10%). In terms of maximum drawdown, PRFD dropped -11.93% vs FPE's -33.35%.

Which ETF is better, PRFD or FPE?

On 3-year performance, FPE leads with 10.04% vs 9.23% for PRFD. On fees, PRFD is cheaper at 0.74% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PRFD or FPE?

Over the 3-year period, FPE has performed better with a 10.04% return vs 9.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PRFD or FPE?

PRFD is cheaper with a 0.74% expense ratio, compared with 0.85% for FPE.

Which ETF pays a higher dividend yield, PRFD or FPE?

FPE has the higher dividend yield at 5.84%, compared with 5.77% for PRFD.

What is the main difference between PRFD and FPE?

They also come from different issuers: PIMCO and First Trust. Their fees differ too: 0.74% for PRFD and 0.85% for FPE.

Which has better risk-adjusted returns?

PRFD currently has the higher Sharpe Ratio (2.51 vs 2.22), 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.