First Trust Institutional Preferred Securities & Income ETF

Frequently Asked Questions About FPEI

What does FPEI invest in?

The fund under normal market conditions, invests at least 80% of its net assets (including investment borrowings) in institutional preferred securities and income-producing debt 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.

What is the expense ratio of FPEI?

First Trust Institutional Preferred Securities & Income ETF (FPEI) charges an expense ratio of 0.85%. This is the annual fee deducted from fund assets to cover management and operations.

What is FPEI's dividend yield?

FPEI's trailing-twelve-month yield is 6.29%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of FPEI?

Effective duration measures FPEI's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. FPEI's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of FPEI?

FPEI's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of FPEI?

Yield to maturity (YTM) is the total return you'd earn from FPEI if every bond in the portfolio is held to maturity at the current price. FPEI's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.