First Trust Preferred Securities and Income ETF (FPE)

Overview

The First Trust Preferred Securities and Income ETF (FPE) seeks to provide current income by investing primarily in preferred securities and income-producing securities.

Reputation and Reliability

First Trust is a well-established ETF issuer known for providing innovative investment solutions.

Management Expertise

First Trust has a team of experienced investment professionals managing its ETFs.

Goal

To seek a high level of current income.

Investment Approach and Strategy

Strategy: The ETF does not aim to track a specific index. It actively selects preferred and income securities.

Composition The ETF primarily holds preferred stocks, debt securities, and other income-producing securities.

Market Share: Data not available

Total Net Assets (AUM): 609300000

Key Competitors

• PFF
• PGX
• SPFF

Competitive Landscape

The preferred securities ETF market is competitive, with several large funds offering similar exposure. FPE differentiates itself through its active management strategy, potentially offering higher yield but also increased risk compared to passively managed competitors. The key competitors are larger in size and are passively managed based on indexes.

Historical Performance: Historical performance data is available through financial data providers.

Benchmark Comparison: The ETF's performance can be compared to a benchmark index of preferred securities.

Expense Ratio: 0.85

Average Trading Volume

The ETF has an average trading volume that indicates reasonable liquidity for many investors.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting good liquidity.

Market Environment Factors

The ETF's performance is affected by interest rate changes, credit spreads, and the overall health of the financial sector.

Growth Trajectory

Growth is tied to interest rates and creditworthiness of the issuers of the bonds.

Competitive Edge

FPE benefits from First Trust's established reputation. It distinguishes itself through an active management strategy. The strategy can potentially lead to higher yields compared to passive strategies. However, it also introduces active management risks and higher expense ratios. First Trust also distributes good insights regarding the overall sector.

Volatility

The ETF's volatility depends on the credit quality of the underlying preferred securities and interest rate sensitivity.

Market Risk

The ETF is exposed to market risk, interest rate risk, and credit risk associated with preferred securities.

Ideal Investor Profile

The ideal investor is seeking current income and is comfortable with the risks associated with preferred securities.

Market Risk

This ETF is suitable for long-term investors seeking income, rather than short-term traders.

First Trust Preferred Securities and Income ETF (FPE) is an actively managed ETF that focuses on providing current income through investments in preferred and income-producing securities. Managed by First Trust, the fund offers a potentially higher yield than passively managed competitors but comes with higher management fees. It is suitable for income-seeking investors who understand the risks associated with preferred securities, including interest rate sensitivity and credit risk. Ultimately, it's a good way for investors to get access to the preferred security market, especially those lacking resources to directly invest.

Data Sources:

• First Trust Website
• ETF.com
• Bloomberg
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be made after consulting with a financial advisor and conducting thorough due diligence.