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Upturn AI SWOT - About
First Trust Institutional Preferred Securities and Income ETF (FPEI)
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Upturn Advisory Summary
09/16/2025: FPEI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type ETF | Historic Profit 21.12% | Avg. Invested days 76 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | ETF Returns Performance  4.0 |
| Profits based on simulation | Last Close 09/16/2025 |
Key Highlights
Volume (30-day avg) - | Beta 0.62 | 52 Weeks Range 17.30 - 18.95 | Updated Date 06/29/2025 |
52 Weeks Range 17.30 - 18.95 | Updated Date 06/29/2025 |
Upturn AI SWOT
First Trust Institutional Preferred Securities and Income ETF
ETF Overview
Overview
The First Trust Institutional Preferred Securities and Income ETF (FPE) seeks to provide current income. It invests primarily in a diversified portfolio of preferred securities and other income-producing securities, issued by U.S. and non-U.S. companies, including those in the financial sector.
Reputation and Reliability
First Trust is a well-established ETF provider with a reputation for innovation and a solid track record in managing various ETF strategies.
Management Expertise
First Trust has a dedicated team of investment professionals with extensive experience in fixed income and preferred securities investing.
Investment Objective
Goal
To seek a high level of current income.
Investment Approach and Strategy
Strategy: The ETF does not track a specific index but employs a managed approach to select preferred and income securities.
Composition Primarily holds preferred securities, but may also invest in common stock, corporate bonds, and convertible securities.
Market Position
Market Share: Market share information is not readily available.
Total Net Assets (AUM): 40700000
Competitors
Key Competitors
- PGX
- PFF
- SPFF
Competitive Landscape
The preferred securities ETF market is competitive, with several large players offering similar strategies. FPE differentiates itself with its active management style, which may offer the potential for outperformance but also adds risk. The advantages of FPE is its institutional share class status, the disadvantages are small asset size and potentially higher fees than its competitors.
Financial Performance
Historical Performance: Historical performance data should be obtained from official fund documents or financial data providers.
Benchmark Comparison: A benchmark comparison requires specifying a relevant benchmark index for preferred securities. Performance data is needed for comparison.
Expense Ratio: 0.65
Liquidity
Average Trading Volume
The average daily trading volume is relatively light which may result in wider bid-ask spreads.
Bid-Ask Spread
The bid-ask spread can vary, but generally is moderate, which affects the cost of trading.
Market Dynamics
Market Environment Factors
Interest rate changes, credit spreads, and the overall health of the financial sector can significantly impact FPE's performance. Regulatory changes can also impact preferred security market.
Growth Trajectory
The growth trajectory is dependent on factors such as interest rate environment and investor demand for income-generating assets. No changes to strategy or holdings were available.
Moat and Competitive Advantages
Competitive Edge
FPE benefits from First Trust's experience in managing income-focused ETFs and its access to institutional research. The ETF's active management allows it to potentially capitalize on market inefficiencies in the preferred securities market. Its focus on institutional investors allows for access to a broader pool of securities. The actively managed approach makes it unique compared to passive market-tracking ETFs.
Risk Analysis
Volatility
FPE's volatility is moderate, reflecting the risk profile of preferred securities. It is exposed to both interest rate risk and credit risk.
Market Risk
Specific risks include interest rate risk (rising rates can decrease the value of preferred securities), credit risk (issuers may default), and liquidity risk (some preferred securities may be difficult to trade).
Investor Profile
Ideal Investor Profile
Investors seeking current income and diversification within the fixed-income market who are comfortable with moderate risk.
Market Risk
Suitable for long-term investors seeking income, but not ideal for short-term traders due to the potential for volatility and moderate trading costs.
Summary
The First Trust Institutional Preferred Securities and Income ETF offers a way to generate income through preferred securities. Its actively managed nature allows for potential outperformance, but the overall market is volatile. The expense ratio is moderate, but liquidity could be a concern for large trades. It is suitable for long-term investors seeking income and diversification.
Peer Comparison
Sources and Disclaimers
Data Sources:
- First Trust Website
- ETF.com
- Morningstar
- Bloomberg
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and fund performance can change rapidly. Consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Trust Institutional Preferred Securities and Income ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund invests at least 80% of its net assets (including investment borrowings) in institutional preferred securities and income-producing debt securities (Income Securities). Preferred securities are a type of equity security that have preference over common stock in the payment of distributions and the liquidation of a company's assets, but are generally junior to all forms of the company's debt, including both senior and subordinated debt. The fund's investments in preferred securities will primarily be in institutional preferred securities.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.