IPPP vs VRP
Preferred Plus ETF vs Invesco Variable Rate Preferred ETF
Which is better, IPPP or VRP?
Each has led over a different period.
VRP has a lower expense ratio. IPPP led over 1Y, VRP over the full window. The two have moved almost in lockstep, correlation 0.90.
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 | IPPP | VRP |
|---|---|---|
| Expense Ratio | 1.02% | 0.50%Best |
| AUM | $12M | $3.0B |
| Dividend Yield | 5.62% | 6.23% |
| Holdings | 98 | 733 |
| Volatility (annualized) | 15.8% | 7.7%Best |
| Max Drawdown | -22.3% | -10.3%Best |
| $10,000 over 3.5 years | $10,758 | $12,433Best |
| Fund Family | Innovative Portfolios LLC | Invesco (US) |
| Category | Allocation/Balanced | Allocation/Balanced |
| Style | Preferred Stock | Preferred Stock |
| Inception | Dec 24, 2018 | May 1, 2014 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized), Top 10 Weight.
The two price series end 415 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. IPPP has data through Aug 25, 2025 and VRP through Oct 14, 2026.
Volatility and max drawdown, and the $10,000 over 3.5 years row, are measured over the window both funds cover: Mar 7, 2022 to Aug 25, 2025 (3.5 years).
Risk: Volatility and Drawdowns
IPPP has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 7.7% 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 -22.3% for IPPP and -10.3% 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IPPP charges 1.02% per year while VRP charges 0.50%. On a $10,000 position that is $102 vs $50 annually, a gap of $52 per year that compounds over a long holding period. On income, IPPP currently yields 5.62% against 6.23% for VRP.
You are not choosing between two funds in isolation.
Whichever of IPPP and VRP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IPPP or VRP?
IPPP has an expense ratio of 1.02% while VRP charges 0.50%. VRP is the cheaper option, by $52 a year on a $10,000 investment.
Which is riskier, IPPP or VRP?
IPPP has been the more volatile fund at 15.8% annualized versus 7.7% for VRP. Worst drawdown: IPPP -22.3% vs VRP -10.3%.
Should I hold both IPPP and VRP?
IPPP and VRP have a monthly-return correlation of 0.90, 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, IPPP or VRP?
IPPP yields 5.62% while VRP yields 6.23%, so VRP currently pays the higher dividend yield.
Is VRP better than IPPP?
VRP has a lower expense ratio. IPPP led over 1Y, VRP over the full window. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.