FPF vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricFPFVTIWinner
Expense Ratio1.78%0.03%
AUM$1.8B$663.5B
Dividend Yield8.64%1.07%
Holdings2303,543
YTD Return-0.45%+13.87%
1Y Return+1.87%+23.31%
3Y Return (annualized)+14.15%+21.17%
5Y Return (annualized)+0.76%+12.23%
Volatility (annualized)14.9%15.3%
Max Drawdown-54.6%-56.6%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAllocation/BalancedEquity
InceptionMay 24, 2013May 24, 2001

FPF vs VTI Performance

First Trust Intermediate Duration Preferred & Income Fund (FPF) is a ETF from First Trust Portfolios (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FPF returned +1.87% while VTI returned +23.31%. Year to date, FPF is down 0.45% versus a gain of 13.87% for VTI.

Over three years, FPF compounded at +14.15% per year against +21.17% for VTI; over five years the annualized figures are +0.76% and +12.23% respectively. Across the full 13-year window we track, VTI has the edge at +8.13% annualized vs +0.76%. 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 14.9% for FPF. 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 -54.6% for FPF 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FPF charges 1.78% per year while VTI charges 0.03%. On a $10,000 position that is $178 vs $3 annually, a gap of $175 per year that compounds over a long holding period. On income, FPF currently yields 8.64% against 1.07% for VTI.

Holdings Overlap

0.9%overlap

FPF and VTI share 13 holdings out of 2940 unique holdings combined, representing a 0.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FPFWeight in VTIDifference
NEE2.11%0.25%1.86%
XEL1.95%0.07%1.88%
TMUS1.71%0.10%1.61%
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Frequently Asked Questions

Which is cheaper, FPF or VTI?

FPF has an expense ratio of 1.78% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $175 per year of difference.

Which performed better, FPF or VTI?

Over the past year FPF returned +1.87% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (13 years), FPF annualized +0.76% vs +8.13% for VTI. Past performance does not guarantee future results.

Which is riskier, FPF or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 14.9% for FPF. Worst drawdown: FPF -54.6% vs VTI -56.6%.

Should I hold both FPF and VTI?

FPF and VTI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FPF and VTI?

FPF and VTI share 13 common holdings with a 0.9% weight overlap. Combined, they hold 2940 unique securities.

Which pays a higher dividend, FPF or VTI?

FPF yields 8.64% while VTI yields 1.07%, so FPF currently pays the higher dividend yield.

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