FPE vs VTI
First Trust Preferred Securities and Income ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FPE | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.03% | |
| AUM | $6.3B | $666.9B | |
| Dividend Yield | 5.89% | 1.07% | |
| Holdings | 260 | 3,543 | |
| YTD Return | +0.35% | +12.65% | |
| 1Y Return | +3.24% | +21.39% | |
| 3Y Return (annualized) | +9.45% | +21.54% | |
| 5Y Return (annualized) | +2.57% | +12.11% | |
| Volatility (annualized) | 8.4% | 15.3% | |
| Max Drawdown | -34.8% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 11, 2013 | May 24, 2001 |
FPE vs VTI Performance
First Trust Preferred Securities and Income ETF (FPE) is a ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FPE returned +3.24% while VTI returned +21.39%. Year to date, FPE is up 0.35% versus a gain of 12.65% for VTI.
Over three years, FPE compounded at +9.45% per year against +21.54% for VTI; over five years the annualized figures are +2.57% and +12.11% respectively. Across the full 14-year window we track, VTI has the edge at +8.07% annualized vs +1.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPE charges 0.85% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FPE and VTI share 3 holdings out of 2985 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 VTI?
FPE has an expense ratio of 0.85% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, FPE or VTI?
Over the past year FPE returned +3.24% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (14 years), FPE annualized +1.33% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, FPE or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 8.4% for FPE. Worst drawdown: FPE -34.8% vs VTI -56.6%.
Should I hold both FPE and VTI?
FPE and VTI have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPE and VTI?
FPE and VTI share 3 common holdings with a 0.4% weight overlap. Combined, they hold 2985 unique securities.
Which pays a higher dividend, FPE or VTI?
FPE yields 5.89% while VTI yields 1.07%, so FPE currently pays the higher dividend yield.
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