FPE vs IVV
First Trust Preferred Securities and Income ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | FPE | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.03% | |
| AUM | $6.3B | $907.0B | |
| Dividend Yield | 5.89% | 1.10% | |
| Holdings | 260 | 508 | |
| YTD Return | +0.51% | +13.22% | |
| 1Y Return | +3.47% | +21.62% | |
| 3Y Return (annualized) | +9.52% | +22.17% | |
| 5Y Return (annualized) | +2.61% | +13.42% | |
| Volatility (annualized) | 8.4% | 15.1% | |
| Max Drawdown | -34.8% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 11, 2013 | May 15, 2000 |
FPE vs IVV Performance
First Trust Preferred Securities and Income ETF (FPE) is a ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FPE returned +3.47% while IVV returned +21.62%. Year to date, FPE is up 0.51% versus a gain of 13.22% for IVV.
Over three years, FPE compounded at +9.52% per year against +22.17% for IVV; over five years the annualized figures are +2.61% and +13.42% respectively. Across the full 14-year window we track, IVV has the edge at +7.02% annualized vs +1.34%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 8.4% for FPE. 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 -34.8% for FPE and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPE charges 0.85% per year while IVV charges 0.03%. On a $10,000 position that is $85 vs $3 annually, a gap of $82 per year that compounds over a long holding period. On income, FPE currently yields 5.89% against 1.10% for IVV.
Holdings Overlap
FPE and IVV share 3 holdings out of 703 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FPE or IVV?
FPE has an expense ratio of 0.85% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, FPE or IVV?
Over the past year FPE returned +3.47% vs +21.62% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (14 years), FPE annualized +1.34% vs +7.02% for IVV. Past performance does not guarantee future results.
Which is riskier, FPE or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 8.4% for FPE. Worst drawdown: FPE -34.8% vs IVV -56.5%.
Should I hold both FPE and IVV?
FPE and IVV have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPE and IVV?
FPE and IVV share 3 common holdings with a 0.4% weight overlap. Combined, they hold 703 unique securities.
Which pays a higher dividend, FPE or IVV?
FPE yields 5.89% while IVV yields 1.10%, so FPE currently pays the higher dividend yield.
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