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Name

As of 12/20/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

First Trust Institutional Preferred Securities and Income ETF

FPEI | Active ETF

$18.65

$1.49 B

5.60%

$1.04

0.85%

Vitals

YTD Return

10.6%

1 yr return

11.0%

3 Yr Avg Return

2.7%

5 Yr Avg Return

3.9%

Net Assets

$1.49 B

Holdings in Top 10

16.9%

52 WEEK LOW AND HIGH

$18.6
$17.70
$19.09

Expenses

OPERATING FEES

Expense Ratio 0.85%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover N/A

Redemption Fee N/A

Min Investment

Standard (Taxable)

N/A

IRA

N/A

Fund Classification

Fund Type

Exchange Traded Fund

Name

As of 12/20/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

First Trust Institutional Preferred Securities and Income ETF

FPEI | Active ETF

$18.65

$1.49 B

5.60%

$1.04

0.85%

FPEI - Profile

Distributions

  • YTD Total Return 10.6%
  • 3 Yr Annualized Total Return 2.7%
  • 5 Yr Annualized Total Return 3.9%
  • Capital Gain Distribution Frequency Annually
  • Net Income Ratio 4.60%
DIVIDENDS
  • Dividend Yield 5.6%
  • Dividend Distribution Frequency Monthly

Fund Details

  • Legal Name
    First Trust Institutional Preferred Securities and Income ETF
  • Fund Family Name
    First Trust Advisors L.P.
  • Inception Date
    Aug 22, 2017
  • Shares Outstanding
    30900002
  • Share Class
    N/A
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Robert Wolf

Fund Description

Under normal market conditions, 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. Institutional preferred securities are targeted to institutional, rather than retail, investors, are generally traded over-the-counter and may also be known as “$1,000 par preferred securities.” They are typically issued in large, institutional lot sizes by U.S. and non-U.S. financial services companies and other companies. While all income-producing debt securities will be categorized as “Income Securities” for purposes of the 80% test above, the Income Securities in which the Fund intends to invest as part of its principal investment strategy include hybrid capital securities, contingent capital securities, U.S. and non-U.S. corporate bonds and convertible securities.In selecting securities for the Fund, the investment strategy of the Fund’s sub-advisor is driven by comprehensive analysis of institutional preferred securities and Income Securities with a goal of investing in securities representing the best relative value in the market. The style of active management by the Fund’s sub-advisor combines a bottom-up and top-down approach to security selection that encompasses three significant areas of analysis: credit fundamentals; relative value; and technical aspects of the securities, which may include, but are not limited to, interest rate sensitivity, call features, maturities, trading volumes, liquidity and pricing inefficiencies. The bottom-up analysis focuses on individual security analysis, idiosyncratic risks, credit fundamentals and opportunistic trading. The top-down analysis focuses on sector and industry analysis, duration and interest rate analysis, capital structure positioning and systemic risks.In general, the preferred securities held by the Fund are expected to be issued by companies in the financial, communications, consumer, government, utilities, energy, materials, industrial and technology sectors. However, because the issuers of institutional preferred securities are often financial companies, the Fund concentrates its investments by investing at least 25% of its total assets in the group of industries that comprise the financial sector, which includes banks, thrifts, brokerage firms, broker-dealers, investment banks, finance companies and companies involved in the insurance industry. Although the Fund may invest in individual issues of institutional preferred securities with market capitalizations as low as $50 million, the Fund generally does not invest in individual issues of institutional preferred securities if the issuer has a total market capitalization of less than $500 million. The Fund may also invest in preferred securities issued by real estate investment trusts (“REITs”).Along with its investments in institutional preferred securities, the Fund may also invest in retail preferred securities. While institutional preferred securities are generally targeted to institutional investors and trade over-the-counter, retail preferred securities are targeted to retail investors and are exchange-traded at single-share prices of $25, $50 or $100. Both the institutional and retail preferred securities held by the Fund generally pay fixed or adjustable-rate distributions to the Fund. Certain preferred securities may be issued by trusts or other special purpose entities created by companies specifically for the purpose of issuing such securities.Additionally, the Fund may invest in Income Securities that have certain characteristics similar to preferred securities. These securities include hybrid capital securities, contingent capital securities and other types of securities that resemble preferred securities but that do not have the traditional features described above. Hybrid capital securities possess varying combinations of features of both debt and traditional preferred securities and as such they may constitute senior debt, junior debt or preferred shares in an issuer’s capital structure. Contingent convertible securities (“CoCos”) are issued primarily by non-U.S. financial institutions that have loss absorption mechanisms benefitting the issuer built into their terms. These loss absorption mechanisms may include automatic conversion into the issuer’s common stock or an automatic write down of the security’s principal amount upon the occurrence of specific triggers. Certain CoCos may be considered to be high-yield securities (a.k.a. "junk" bonds) and, to the extent a CoCo held by the Fund undergoes a write down, the Fund may lose some or all of its original investment in the CoCo.The Fund may also invest in floating-rate and fixed-to-floating rate securities as well. Floating-rate and fixed-to-floating rate securities may be traditional preferred or hybrid capital securities. Floating-rate securities pay a rate of income that resets periodically based on short and/or longer-term interest rate benchmarks. If the associated interest rate benchmark rises, the coupon offered by the floating-rate security may rise as well, making such securities less sensitive to rising interest rates (or yields). Similarly, a fixed-to-floating rate security may be less price-sensitive to rising interest rates (or yields), because it has a rate of payment that is fixed for a certain period (typically five, ten or thirty years when first issued), after which period a floating-rate of payment applies.Additional Income Securities held by the Fund may include corporate bonds and convertible securities. The broad category of corporate debt securities includes debt issued by U.S. and non-U.S. companies of all kinds, including those with small-, mid-and large-capitalizations. Corporate debt may carry fixed or floating rates of interest. The Fund may invest without limitation in, preferred securities, hybrid capital securities and Income Securities rated below investment grade (BB+/Ba1 or lower) at the time of purchase, which are commonly referred to as high yield securities or “junk bonds.” The Fund may invest in Income Securities of any duration and does not target an overall duration for its portfolio of Income Securities.The Fund may invest in U.S. and non-U.S. debt and equity securities that are traded over-the-counter or are listed on an exchange. The Fund may have exposure to certain emerging markets through its investments in non-U.S. securities. The Fund may also hold investments that are denominated in non-U.S. currencies, or in securities that provide exposure to such currencies, currency exchange rates or interest rates denominated in such currencies. The Fund may also invest U.S. dollar-denominated depositary receipts and U.S. dollar-denominated foreign securities. As of January 31, 2024, the Fund had significant investments in financial companies and European issuers, although this may change from time to time. To the extent the Fund invests a significant portion of its assets in a given jurisdiction or investment sector, the Fund may be exposed to the risks associated with that jurisdiction or investment sector.The Fund may have significant investments in securities that are offered pursuant Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Rule 144A securities are considered restricted securities because they may not be sold to the general public without an effective registration statement under the Securities Act. Rule 144A is designed to facilitate efficient trading among institutional investors by permitting the sale of certain unregistered securities to qualified institutional buyers. The restriction on public sale may make it more difficult to value such securities, limit the Fund’s ability to dispose of them and lower the amount the Fund could realize upon their sale. Because they are not registered, restricted securities may be sold only in a privately negotiated transaction or pursuant to an exemption from registration. To the extent privately placed securities held by the Fund qualify under Rule 144A and an institutional market develops for those securities, the Fund likely will be able to dispose of the securities without registering them under the Securities Act. To the extent that institutional buyers become, for a time, uninterested in purchasing these securities, investing in Rule 144A securities could increase the level of the Fund’s illiquidity.
Read More

FPEI - Performance

Return Ranking - Trailing

Period FPEI Return Category Return Low Category Return High Rank in Category (%)
YTD 10.6% 3.1% 16.8% 25.00%
1 Yr 11.0% 3.2% 18.3% 25.00%
3 Yr 2.7%* -7.5% 7.7% 14.29%
5 Yr 3.9%* -5.6% 10.2% 7.46%
10 Yr N/A* 0.7% 5.2% 23.73%

* Annualized

Return Ranking - Calendar

Period FPEI Return Category Return Low Category Return High Rank in Category (%)
2023 0.1% -3.6% 14.2% 76.32%
2022 -12.7% -29.4% -9.6% 10.00%
2021 0.1% -3.4% 17.2% 41.43%
2020 1.6% -24.8% 9.0% 22.39%
2019 10.0% 6.4% 19.1% 87.30%

Total Return Ranking - Trailing

Period FPEI Return Category Return Low Category Return High Rank in Category (%)
YTD 10.6% 3.1% 16.8% 25.00%
1 Yr 11.0% 3.2% 18.3% 25.00%
3 Yr 2.7%* -7.5% 7.7% 14.29%
5 Yr 3.9%* -5.6% 10.2% 7.46%
10 Yr N/A* 0.7% 5.2% N/A

* Annualized

Total Return Ranking - Calendar

Period FPEI Return Category Return Low Category Return High Rank in Category (%)
2023 6.3% -1.9% 26.5% 51.32%
2022 -8.2% -26.0% -5.8% 10.00%
2021 4.6% -2.5% 27.4% 31.43%
2020 7.1% -19.2% 12.3% 14.93%
2019 15.9% 10.0% 32.0% 84.13%

FPEI - Holdings

Concentration Analysis

FPEI Category Low Category High FPEI % Rank
Net Assets 1.49 B 35.2 M 15.4 B 39.47%
Number of Holdings 165 49 444 72.37%
Net Assets in Top 10 252 M 13.2 M 2.1 B 50.00%
Weighting of Top 10 16.90% 11.1% 48.1% 65.79%

Top 10 Holdings

  1. Toronto-Dominion Bank/The 2.12%
  2. Lloyds Banking Group PLC 1.70%
  3. ING Groep NV 1.68%
  4. Energy Transfer LP 1.66%
  5. BNP Paribas SA 1.65%
  6. Global Atlantic Fin Co 1.64%
  7. Bank of America Corp 1.63%
  8. Bank of Montreal 1.62%
  9. Charles Schwab Corp/The 1.61%
  10. Intesa Sanpaolo SpA 1.59%

Asset Allocation

Weighting Return Low Return High FPEI % Rank
Bonds 		95.68% 0.00% 97.75% 11.84%
Convertible Bonds 		25.47% 0.00% 31.65% 45.21%
Preferred Stocks 		2.40% 0.00% 125.69% 89.47%
Cash 		1.92% -0.02% 11.04% 53.95%
Stocks 		0.00% 0.00% 29.42% 98.68%
Other 		0.00% -4.40% 10.15% 69.74%

Bond Sector Breakdown

Weighting Return Low Return High FPEI % Rank
Corporate 		95.87% 62.31% 100.00% 84.93%
Government 		0.32% 0.00% 21.71% 42.47%
Derivative 		0.00% -0.62% 9.46% 69.74%
Cash & Equivalents 		0.00% 0.00% 11.04% 98.68%
Securitized 		0.00% 0.00% 0.00% 95.89%
Municipal 		0.00% 0.00% 0.00% 95.89%

Bond Geographic Breakdown

Weighting Return Low Return High FPEI % Rank
US 		95.68% 0.00% 97.61% 2.63%
Non US 		0.00% 0.00% 22.53% 98.68%

FPEI - Expenses

Operational Fees

FPEI Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 0.85% 0.05% 4.46% 65.33%
Management Fee 0.85% 0.00% 1.00% 89.47%
12b-1 Fee 0.00% 0.00% 1.00% 19.35%
Administrative Fee N/A 0.01% 0.55% N/A

Sales Fees

FPEI Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 2.00% 5.75% N/A
Deferred Load N/A 1.00% 1.00% N/A

Trading Fees

FPEI Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A N/A N/A N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

FPEI Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover N/A 12.00% 199.00% 65.33%

FPEI - Distributions

Dividend Yield Analysis

FPEI Category Low Category High FPEI % Rank
Dividend Yield 5.60% 0.00% 9.59% 31.58%

Dividend Distribution Analysis

FPEI Category Low Category High Category Mod
Dividend Distribution Frequency Monthly Monthly Monthly Monthly

Net Income Ratio Analysis

FPEI Category Low Category High FPEI % Rank
Net Income Ratio 4.60% 0.88% 7.54% 30.56%

Capital Gain Distribution Analysis

FPEI Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually Annually

Distributions History

View More +

FPEI - Fund Manager Analysis

Managers

Robert Wolf

Start Date

Tenure

Tenure Rank

Aug 22, 2017

4.78

4.8%

Robert Wolf serves as Chief Investment Officer, Senior Vice President and Senior Portfolio Manager at Stonebridge. Mr. Wolf is a senior member of Stonebridge Advisors’ Investment Committee and oversees investment strategies and portfolio management activities across fund products and separately managed accounts. Mr. Wolf directs the daily management of preferred securities portfolios and performs both credit research and trading functions. Mr. Wolf has over twenty years of fixed-income experience in both portfolio management and credit research. Prior to joining Stonebridge in 2006, Mr. Wolf was a high-yield fixed-income research analyst at Lehman Brothers. In this role, his responsibilities included detailed credit analysis across multiple sectors, relative value analysis, and developing trade recommendations. Mr. Wolf previously worked for Lehman Brothers’ commercial mortgage-backed securities (CMBS) trading desk as a credit analyst. Mr. Wolf received his B.S. degree in Chemistry from Villanova University and his MBA in Finance from the New York University Stern School of Business.

Scott Fleming

Start Date

Tenure

Tenure Rank

Aug 22, 2017

4.78

4.8%

Scott Fleming serves as President and CEO of Stonebridge setting the strategic direction of Stonebridge including operations, business and product development, and marketing strategies. Mr. Fleming leads the Investment Committee and oversees investment policies and strategies for all of the company’s portfolio management activities. Additionally, Mr. Fleming directs the daily management of preferred stock portfolios. Prior to founding Stonebridge in 2004, Mr. Fleming co-founded Spectrum Asset Management, Inc., an investment advisor that specializes in preferred securities asset management for institutional clients and mutual funds. During his 13-year tenure there, he served as Chairman of the Board of Directors, Chief Financial Officer and Chief Investment Officer. Under his leadership, Spectrum grew to be the largest preferred securities manager in the country. Mr. Fleming previously served as Vice President, Portfolio Manager for DBL Preferred Management, Inc. in New York City. Mr. Fleming received a B.S. in Accounting from Bentley College in Waltham, MA and his MBA in Finance from Babson College in Wellesley, MA.

Eric Weaver

Start Date

Tenure

Tenure Rank

Mar 02, 2020

2.25

2.3%

SVP, PM & Chief Strategist

Angelo Graci

Start Date

Tenure

Tenure Rank

Mar 01, 2022

0.25

0.3%

EVP, Head of Credit Research

Tenure Analysis

Category Low Category High Category Average Category Mode
0.09 30.32 7.57 11.42

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