FPE vs VOO
First Trust Preferred Securities and Income ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FPE | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.03% | |
| AUM | $6.3B | $997.4B | |
| Dividend Yield | 5.89% | 1.08% | |
| Holdings | 260 | 509 | |
| YTD Return | +0.18% | +12.95% | |
| 1Y Return | +3.23% | +20.69% | |
| 3Y Return (annualized) | +9.41% | +22.09% | |
| 5Y Return (annualized) | +2.54% | +13.40% | |
| Volatility (annualized) | 8.4% | 14.1% | |
| Max Drawdown | -34.8% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 11, 2013 | Sep 7, 2010 |
FPE vs VOO Performance
First Trust Preferred Securities and Income ETF (FPE) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FPE returned +3.23% while VOO returned +20.69%. Year to date, FPE is up 0.18% versus a gain of 12.95% for VOO.
Over three years, FPE compounded at +9.41% per year against +22.09% for VOO; over five years the annualized figures are +2.54% and +13.40% respectively. Across the full 14-year window we track, VOO has the edge at +13.50% annualized vs +1.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO 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 1.08% for VOO.
Holdings Overlap
FPE and VOO 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 VOO?
FPE has an expense ratio of 0.85% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, FPE or VOO?
Over the past year FPE returned +3.23% vs +20.69% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), FPE annualized +1.31% vs +13.50% for VOO. Past performance does not guarantee future results.
Which is riskier, FPE or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 8.4% for FPE. Worst drawdown: FPE -34.8% vs VOO -34.3%.
Should I hold both FPE and VOO?
FPE and VOO 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 VOO?
FPE and VOO share 3 common holdings with a 0.4% weight overlap. Combined, they hold 703 unique securities.
Which pays a higher dividend, FPE or VOO?
FPE yields 5.89% while VOO yields 1.08%, so FPE currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.