Deep Dive
Financials drop 2.4% after the Fed's first hike since 2023 and a Bank of America fee warning
First Trust Preferred Securities and Income ETF
$17.05+0.04 (+0.24%)
- 0.83%
- $5.9B
- −0.5%
- 6.31%
- 1.2M sh
- $17.07
- low $16.96high $18.51
The ETF.net FPE Grade
B
Score 59 out of 100
- 10 of 31
Score 59 of 100 falls in the B band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.F13 out of 100Rank 27 of 31Mission
Whether the fund did what it promised, tested against its stated mandate.A90 out of 100Rank 1 of 26Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.B59 out of 100Rank 14 of 31Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.A77 out of 100Rank 6 of 31Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A78 out of 100Rank 5 of 29Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A91 out of 100Rank 2 of 31
Our read on FPE
BA preferred-securities fund that doesn't stop at preferreds: the mandate also reaches into corporate bonds, high yield and convertibles. Running since 2013, big, actively traded, and it pays monthly.
The fund seeks total return and current income. It normally invests at least 80% of net assets in preferred securities and income-producing debt securities, including corporate bonds, high-yield securities, and convertible securities.
Why people hold it
- The 80% policy spans preferred securities and income-producing debt: corporate bonds, high-yield, convertibles. One ticker, several income markets instead of a single slice.
- Live since 2013 and grown into a multi-billion-dollar fund that trades actively, real staying power in a niche corner of the bond market.
- Monthly distributions from a portfolio of roughly 240 positions, and one of the stronger overall showings among the preferred funds we grade.
Worth knowing
- The fee is 0.83% a year, well above the typical preferred ETF, and cheaper shelf-mates exist (EVPF at 0.20%, PFFV at 0.25%).
- That wide mandate cuts both ways: high-yield and convertible holdings carry credit risk a plain investment-grade preferred sleeve would not.
FPE Holdings
- Bonds
- 265
- 15%
- BANK OF AMERICA CORP Variable rate
Sectors
- Financials64.3%
- Utilities17.3%
- Communication10.1%
- Real Estate4.7%
- Consumer Discretionary2.0%
- Energy0.9%
- Consumer Staples0.7%
Geography
- United States56.88%
- Canada10.96%
- France7.88%
- United Kingdom6.34%
- Bermuda3.40%
- Spain3.34%
- Japan2.71%
- Netherlands2.03%
- 6.45%
Developed 85% · Emerging 15%
FPE Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
FPE$9,953
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | FPE |
|---|---|
| Year to date | −2.5% |
| 1 month | −2.2% |
| 3 months | −3.7% |
| 1 year | −0.5% |
| 3 years | +8.7% |
| 5 years | +2.1% |
| 10 years | +4.2% |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | FPE |
|---|---|---|
| 2026 YTD | −2.5% | |
| 2025 | +9.2% | |
| 2024 | +11.2% | |
| 2023 | +6.8% | |
| 2022 | −12.8% | |
| 2021 | +5.3% | |
| 2020 | +6.0% |
FPE in the news
FPE Dividends
- 6.31%
- $1.07
- $0.10 per share
- Monthly
Distribution history
FPE Risk
- 5.9%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 0.63
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −19.4%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.72
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
FPE Cost
0.83%
FPE0.83%
- The middle half of Preferred Securities funds
- Median 0.50%
26 of the 31 Preferred Securities funds charge less.
Other funds in Preferred Securities
- BPGXInvesco Preferred ETFExpense ratio 0.50%1 year return −7.9%
- BJHPIJohn Hancock Investments - Preferred Income ETFExpense ratio 0.54%1 year return −0.4%
- BGPRFGoldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETFExpense ratio 0.45%1 year return −0.8%
- BPREFPrincipal Spectrum Preferred Securities Active ETFExpense ratio 0.55%1 year return +1.4%
- BCSSDCohen & Steers Short Duration Preferred and Income Active ETFExpense ratio 0.49%1 year return —