VRP vs. PEY
Compare and contrast key facts about Invesco Variable Rate Preferred ETF (VRP) and Invesco High Yield Equity Dividend Achievers™ ETF (PEY).
VRP and PEY 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. PEY is a passively managed fund by Invesco that tracks the performance of the Dividend Achiever 50 Index. It was launched on Dec 9, 2004. Both VRP and PEY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VRP or PEY.
Key characteristics
| VRP | PEY | |
|---|---|---|
| YTD Return | 11.47% | 8.30% |
| 1Y Return | 17.76% | 25.12% |
| 3Y Return (Ann) | 3.76% | 6.87% |
| 5Y Return (Ann) | 4.42% | 8.35% |
| 10Y Return (Ann) | 5.10% | 9.64% |
| Sharpe Ratio | 3.73 | 1.53 |
| Sortino Ratio | 5.64 | 2.31 |
| Omega Ratio | 1.78 | 1.28 |
| Calmar Ratio | 3.06 | 1.92 |
| Martin Ratio | 39.15 | 5.77 |
| Ulcer Index | 0.44% | 4.15% |
| Daily Std Dev | 4.65% | 15.65% |
| Max Drawdown | -46.04% | -72.82% |
| Current Drawdown | 0.00% | -1.30% |
Correlation
The correlation between VRP and PEY is 0.34, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VRP vs. PEY - Performance Comparison
In the year-to-date period, VRP achieves a 11.47% return, which is significantly higher than PEY's 8.30% return. Over the past 10 years, VRP has underperformed PEY with an annualized return of 5.10%, while PEY has yielded a comparatively higher 9.64% annualized return. 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. PEY - Expense Ratio Comparison
VRP has a 0.50% expense ratio, which is lower than PEY's 0.53% expense ratio.
Risk-Adjusted Performance
VRP vs. PEY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Variable Rate Preferred ETF (VRP) and Invesco High Yield Equity Dividend Achievers™ ETF (PEY). 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. PEY - Dividend Comparison
VRP's dividend yield for the trailing twelve months is around 5.92%, more than PEY's 4.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | 4.61% | 4.58% | 4.21% | 3.82% | 4.30% | 3.79% | 4.34% | 3.22% | 3.12% | 3.44% | 3.24% | 3.27% |
Drawdowns
VRP vs. PEY - Drawdown Comparison
The maximum VRP drawdown since its inception was -46.04%, smaller than the maximum PEY drawdown of -72.82%. Use the drawdown chart below to compare losses from any high point for VRP and PEY. For additional features, visit the drawdowns tool.
Volatility
VRP vs. PEY - Volatility Comparison
The current volatility for Invesco Variable Rate Preferred ETF (VRP) is 1.16%, while Invesco High Yield Equity Dividend Achievers™ ETF (PEY) has a volatility of 5.02%. This indicates that VRP experiences smaller price fluctuations and is considered to be less risky than PEY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.