FPE vs VRP
First Trust Preferred Securities and Income ETF vs Invesco Variable Rate Preferred ETF
Which is better, FPE or VRP?
VRP has been ahead.
VRP has a lower expense ratio. VRP led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FPE | VRP |
|---|---|---|
| Expense Ratio | 0.85% | 0.50%Best |
| AUM | $5.9B | $3.0B |
| Dividend Yield | 6.14% | 6.23% |
| Holdings | 260 | 733 |
| YTD Return | -2.80% | +0.68%Best |
| 1Y Return | -1.60% | +1.94%Best |
| 3Y Return (annualized) | +8.61% | +8.82%Best |
| 5Y Return (annualized) | +1.89% | +3.84%Best |
| Volatility (annualized) | 8.6% | 7.4%Best |
| Max Drawdown | -33.6%Best | -46.2% |
| $10,000 over 5 years | $10,981 | $12,073Best |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Allocation/Balanced | Allocation/Balanced |
| Style | Preferred Stock | Preferred Stock |
| Inception | Feb 11, 2013 | May 1, 2014 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 1, 2014 to Oct 14, 2026 (12.5 years).
FPE vs VRP growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 12.5 years both funds cover.
FPE vs VRP Performance
First Trust Preferred Securities and Income ETF (FPE) is an ETF from First Trust Portfolios (US) and Invesco Variable Rate Preferred ETF (VRP) is an ETF from Invesco (US). Over the past year FPE returned -1.60% while VRP returned +1.94%. Year to date, FPE is down 2.80% versus a gain of 0.68% for VRP.
Over three years, FPE compounded at +8.61% per year against +8.82% for VRP; over five years the annualized figures are +1.89% and +3.84% respectively. Across the full 13-year window we track, VRP has the edge at +2.15% annualized vs +1.63%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FPE has been the more volatile fund, with annualized monthly volatility of 8.6% compared with 7.4% for VRP. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.6% for FPE and -46.2% for VRP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FPE charges 0.85% per year while VRP charges 0.50%. On a $10,000 position that is $85 vs $50 annually, a gap of $35 per year that compounds over a long holding period. On income, FPE currently yields 6.14% against 6.23% for VRP.
Holdings Overlap
We hold position weights for 39 holdings in FPE and 268 in VRP, totalling 8.5% and 71.2% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 3 positions appear in both.
3 positions in common, counted across the 39 positions we hold weights for in FPE and 268 in VRP, against full books of 260 and 733.
You are not choosing between two funds in isolation.
Whichever of FPE and VRP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
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Frequently Asked Questions
Which is cheaper, FPE or VRP?
FPE has an expense ratio of 0.85% while VRP charges 0.50%. VRP is the cheaper option, by $35 a year on a $10,000 investment.
Which performed better, FPE or VRP?
Over the past year FPE returned -1.60% vs +1.94% for VRP, so VRP leads on 1-year performance. Over the longest common window we track (13 years), FPE annualized +1.63% vs +2.15% for VRP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FPE or VRP?
FPE has been the more volatile fund at 8.6% annualized versus 7.4% for VRP. Worst drawdown: FPE -33.6% vs VRP -46.2%.
Should I hold both FPE and VRP?
FPE and VRP have a monthly-return correlation of 0.94, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, FPE or VRP?
FPE yields 6.14% while VRP yields 6.23%, so VRP currently pays the higher dividend yield.
Is VRP better than FPE?
VRP has a lower expense ratio. VRP led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. Which one suits a particular account depends on what it is for. This is information, not a recommendation.