VRP vs. FPEI
Compare and contrast key facts about Invesco Variable Rate Preferred ETF (VRP) and First Trust Institutional Preferred Securities & Income ETF (FPEI).
VRP and FPEI are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VRP is a passively managed fund by Invesco that tracks the performance of the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. It was launched on May 1, 2014. FPEI is an actively managed fund by First Trust. It was launched on Aug 22, 2017.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VRP or FPEI.
Key characteristics
| VRP | FPEI | |
|---|---|---|
| YTD Return | 11.47% | 11.14% |
| 1Y Return | 17.76% | 18.99% |
| 3Y Return (Ann) | 3.76% | 2.64% |
| 5Y Return (Ann) | 4.42% | 4.33% |
| Sharpe Ratio | 3.73 | 4.87 |
| Sortino Ratio | 5.64 | 8.10 |
| Omega Ratio | 1.78 | 2.16 |
| Calmar Ratio | 3.06 | 1.94 |
| Martin Ratio | 39.15 | 39.17 |
| Ulcer Index | 0.44% | 0.47% |
| Daily Std Dev | 4.65% | 3.81% |
| Max Drawdown | -46.04% | -27.51% |
| Current Drawdown | 0.00% | -0.36% |
Correlation
The correlation between VRP and FPEI is 0.44, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VRP vs. FPEI - Performance Comparison
The year-to-date returns for both stocks are quite close, with VRP having a 11.47% return and FPEI slightly lower at 11.14%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VRP vs. FPEI - Expense Ratio Comparison
VRP has a 0.50% expense ratio, which is lower than FPEI's 0.85% expense ratio.
Risk-Adjusted Performance
VRP vs. FPEI - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Variable Rate Preferred ETF (VRP) 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.
Dividends
VRP vs. FPEI - Dividend Comparison
VRP's dividend yield for the trailing twelve months is around 5.92%, more than FPEI's 5.48% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
VRP Invesco Variable Rate Preferred ETF | 5.92% | 6.61% | 5.38% | 4.26% | 4.18% | 5.15% | 5.28% | 4.68% | 5.10% | 5.02% | 3.04% |
FPEI First Trust Institutional Preferred Securities & Income ETF | 5.48% | 5.75% | 5.20% | 4.46% | 4.91% | 5.02% | 5.83% | 1.49% | 0.00% | 0.00% | 0.00% |
Drawdowns
VRP vs. FPEI - Drawdown Comparison
The maximum VRP drawdown since its inception was -46.04%, which is greater than FPEI's maximum drawdown of -27.51%. Use the drawdown chart below to compare losses from any high point for VRP and FPEI. For additional features, visit the drawdowns tool.
Volatility
VRP vs. FPEI - Volatility Comparison
Invesco Variable Rate Preferred ETF (VRP) has a higher volatility of 1.16% compared to First Trust Institutional Preferred Securities & Income ETF (FPEI) at 0.75%. This indicates that VRP's price experiences larger fluctuations and is considered to be riskier than FPEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.