With what appears to be an impending first rate cut of 2025, advisors and clients alike may be looking for high yielding alternatives to sustain income.
There were no changes to any of the First Trust Models covered within the report this week.
With what appears to be an impending first rate cut of 2025, advisors and clients alike may be looking for high yielding alternatives to sustain income. Among the options within the First Trust lineup that presents a positive technical picture is the First Trust Institutional Preferred Securities & Income ETF (FPEI).
The ETF has maintained a fund score north of 3 since mid-July and currently maintains a higher fund score at 3.06 than the average score for the Fixed Income or Preferred groups (both at 2.85). On the default trend chart, FPEI completed its fourth consecutive buy signal at $19.38 during Monday’s (9/15) trading session. The fund has maintained a positive trend since January of this year and Monday’s trading brought the ETF to its highest level since April 2022.
On a total return basis, FPEI has gained 7.73% year-to-date and outperformed the AGG by more than a percent through the close on 9/16. The fund maintains a current yield of roughly 5.5% and is actionable in the $19 to $19.30 range. Initial support lies at $19, while additional may be found at $18.50 and the upper $17 range.
