FPEI vs IVV
First Trust Institutional 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 | FPEI | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.03% | |
| AUM | $1.9B | $907.0B | |
| Dividend Yield | 5.82% | 1.10% | |
| Holdings | 176 | 508 | |
| YTD Return | +1.58% | +12.28% | |
| 1Y Return | +4.89% | +20.94% | |
| 3Y Return (annualized) | +9.71% | +21.81% | |
| 5Y Return (annualized) | +3.82% | +13.05% | |
| Volatility (annualized) | 8.1% | 15.1% | |
| Max Drawdown | -27.8% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 22, 2017 | May 15, 2000 |
FPEI vs IVV Performance
First Trust Institutional Preferred Securities and Income ETF (FPEI) 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 FPEI returned +4.89% while IVV returned +20.94%. Year to date, FPEI is up 1.58% versus a gain of 12.28% for IVV.
Over three years, FPEI compounded at +9.71% per year against +21.81% for IVV; over five years the annualized figures are +3.82% and +13.05% respectively. Across the full 9-year window we track, IVV has the edge at +6.98% annualized vs +2.78%. 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 8.1% for FPEI. 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 -27.8% for FPEI 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPEI 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, FPEI currently yields 5.82% against 1.10% for IVV.
Holdings Overlap
FPEI and IVV share 1 holdings out of 624 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FPEI | Weight in IVV | Difference |
|---|---|---|---|
| C | 0.46% | 0.35% | 0.11% |
Frequently Asked Questions
Which is cheaper, FPEI or IVV?
FPEI 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, FPEI or IVV?
Over the past year FPEI returned +4.89% vs +20.94% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (9 years), FPEI annualized +2.78% vs +6.98% for IVV. Past performance does not guarantee future results.
Which is riskier, FPEI or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 8.1% for FPEI. Worst drawdown: FPEI -27.8% vs IVV -56.5%.
Should I hold both FPEI and IVV?
FPEI and IVV have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPEI and IVV?
FPEI and IVV share 1 common holdings with a 0.3% weight overlap. Combined, they hold 624 unique securities.
Which pays a higher dividend, FPEI or IVV?
FPEI yields 5.82% while IVV yields 1.10%, so FPEI currently pays the higher dividend yield.
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