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- Upturn Summary
- Fund Details
Upturn AI Summary
First Trust Preferred Securities and Income ETF(FPE)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for FPE
10/28/2026: FPE (4-star) is currently NOT-A-BUY. Pass it for now.
First Trust Preferred Securities and Income ETF (FPE) is an actively managed fund that provides exposure to a diversified basket of preferred securities and corporate debt. Its main strength lies in its active management strategy, which aims to provide consistent monthly income while mitigating some of the interest rate and credit risks inherent in passive preferred stock funds. It is best suited for income-focused investors who value professional oversight, though it carries higher fees and sensitivity to interest rate trends compared to lower-cost index alternatives. Investors should monitor the financial sector's health and central bank policy as key determinants of future performance.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
ETF holdings, costs, diversification, valuation, risks, and market conditions provide supporting context about the fund.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Weak fit | The fund prioritizes income generation over capital appreciation, making it less suitable for growth-focused investors. |
| Momentum investor | Weak fit | Preferred securities typically exhibit low price volatility and slow growth, offering little momentum appeal. |
| Value investor | Mixed fit | Value investors may appreciate the income yield, but the underlying sensitivity to rates and credit quality requires careful fundamental analysis. |
| Dividend/Income investor | Strong fit | FPE is specifically designed to provide consistent monthly income for investors seeking higher yields. |
| Low-risk investor | Mixed fit | While more stable than pure equities, preferred securities still carry interest rate and credit risk that can impact principal value. |
Investor Profile
Ideal Investor Profile
Income-oriented investors who want exposure to preferred securities but prefer active management to navigate market risks.
Suitability
Best for long-term income investors rather than short-term traders.
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Volatility | Medium | Preferred securities are subject to price fluctuations based on interest rate changes and market sentiment. |
| Market risk | Medium / high | The fund is susceptible to broader market downturns and shifts in the financial sector where many issuers operate. |
| Concentration | Medium | The portfolio is concentrated in preferred securities, which are often issued by financial institutions. |
| Tracking/expense | Medium | As an actively managed fund, it carries a higher expense ratio than passive index-tracking alternatives. |
| Liquidity | Low | High trading volume in the ETF generally mitigates liquidity concerns for investors. |
| Business/sector quality | Medium | The quality of the fund's income is tied to the credit strength of the banks and corporations issuing the preferred securities. |
Risk Analysis
Volatility
FPE exhibits moderate volatility, primarily driven by interest rate movements rather than the extreme swings seen in common stocks.
Market Risk
The fund faces significant market risk, particularly regarding the credit health of banks and the path of Federal Reserve interest rate policy.
What the ETF Owns
| Exposure Type | Exposure | Weight (%) | Retail Investor Read |
|---|---|---|---|
| Fixed-income type | Preferred Securities | 85 | Preferred securities offer a hybrid between stocks and bonds, providing higher yields than traditional government bonds. |
| Fixed-income type | Corporate Debt Securities | 10 | Corporate bonds provide additional income and diversification to the core preferred stock holdings. |
| Cash/collateral | Cash and Cash Equivalents | 5 | Cash holdings are maintained for liquidity needs and to facilitate active portfolio management. |
Price Behavior
Flat / Range-Bound
The stock price has been trading within a narrow range with minimal directional movement.
Very Smooth
The stock has followed a highly orderly price path with minimal short-term disruption.
Analysis of Past Performance
Type ETF | Historic Profit 22.52% | Avg. Invested days 79 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | ETF Returns Performance  4.0 |
| Profits based on simulation | Last Close 10/28/2026 |
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