(FPEI) First Trust Institutional - Ratings and Ratios

The First Trust Institutional Preferred Securities and Income ETF (FPEI) is an exchange-traded fund that focuses on investing in institutional preferred securities and income-generating debt securities, with a minimum of 80% of its net assets allocated to these assets. Institutional preferred securities are a type of preferred stock that offers a higher claim on assets and dividends than common stock, but ranks below debt securities in the event of liquidation.

Preferred securities are attractive to income-seeking investors due to their relatively high dividend yields and lower volatility compared to common stock. FPEIs investment strategy is designed to capitalize on this by primarily investing in institutional preferred securities, which are typically issued by financial institutions and other corporations. The funds holdings are likely to be diversified across various sectors and industries, providing a broad exposure to the preferred stock market.

Analyzing the funds recent price action, we can see that it has been trending upwards, with its short-term and long-term moving averages indicating a positive momentum. The funds last price is close to its 52-week high, suggesting a strong performance over the past year. With an Average True Range (ATR) of 0.06, representing a 0.31% daily price movement, the funds volatility is relatively low.

Considering the funds Assets Under Management (AUM) of approximately $1.57 billion, FPEI has a significant presence in the market, which can contribute to its liquidity and stability. Looking ahead, based on the technical and fundamental data, we can forecast that FPEI is likely to continue its upward trend, potentially reaching new highs in the near term. If the funds price can break through its 52-week high of $18.90, it may attract more investors, driving the price further up. However, if the price falls below its SMA20 at $18.72, it may indicate a reversal in the trend.