FPWR: FIRST TRUST EIP POWER SOLUTIONS ETF
Understanding the FIRST TRUST EIP POWER SOLUTIONS ETF (FPWR)
What this ETF is trying to do
The FIRST TRUST EIP POWER SOLUTIONS ETF (ticker: FPWR) is an exchange-traded fund. ETFs are collections of different investments bundled into a single package. This specific fund holds various companies, including energy and utility providers.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only how much the share price has changed.
• Total Return: This includes both the change in share price *and* any cash distributions (dividends) paid out to investors.
For FPWR, the numbers show growth in both areas:
• Year-to-Date (YTD): The price return is approximately 8.03%, while the total return is approximately 9.77%.
• One Year: The price return was approximately 5.95%, and the total return was approximately 8.30%.
• Three Years: The price return was approximately 61.32%, and the total return was approximately 73.14%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $33.68. The current price is $35.69.
Income and distribution explanation
Some investors look for ETFs that pay out cash regularly. This is called a distribution yield. For FPWR, the distribution yield is approximately 2.18%. This means the fund paid out about $0.78 per share in trailing distributions. These payments usually happen quarterly, and the most recent data shows they often occur on Thursdays.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they are separate from the growth of the share price itself.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases significantly over time. Some investors worry about this because they want to keep their original investment amount stable.
For FPWR, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in this fund (note that this is a partial list):
• MORGAN STANLEY INSTL LQUDTY TRS INSTL (7.84%)
• ENERGY TRANSFER LP (5.19%)
• ENTERPRISE PRODUCTS PARTNERS LP (4.84%)
• NATIONAL FUEL GAS CO (3.73%)
• DUKE ENERGY CORP (3.43%)
• PPL CORP (3.13%)
• KINDER MORGAN INC CLASS P (3.10%)
• CHENIERE ENERGY PARTNERS LP (2.92%)
• MPLX LP PARTNERSHIP UNITS (2.82%)
• WEC ENERGY GROUP INC (2.81%)
Holdings can change over time.
Pros
• The fund has shown positive price returns and total returns over the last year and three years.
• The data shows no detected price erosion.
Cons
• The distribution yield is relatively modest at approximately 2.18%.
Beginner takeaway
When studying FPWR, remember to look at both the share price and the total return. The total return gives a fuller picture because it includes the cash distributions paid to you. Always distinguish between the price of a share and the income it provides.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MORGAN STANLEY INSTL LQUDTY TRS INSTL | MISXX | 7.84% |
| 2 | ENERGY TRANSFER LP | ET | 5.19% |
| 3 | ENTERPRISE PRODUCTS PARTNERS LP | EPD | 4.84% |
| 4 | NATIONAL FUEL GAS CO | NFG | 3.73% |
| 5 | DUKE ENERGY CORP | DUK | 3.43% |
| 6 | PPL CORP | PPL | 3.13% |
| 7 | KINDER MORGAN INC CLASS P | KMI | 3.10% |
| 8 | CHENIERE ENERGY PARTNERS LP | CQP | 2.92% |
| 9 | MPLX LP PARTNERSHIP UNITS | MPLX | 2.82% |
| 10 | WEC ENERGY GROUP INC | WEC | 2.81% |