HPI vs SCHD
John Hancock Preferred Income Fund vs Schwab US Dividend Equity ETF
Which is better, HPI or SCHD?
Preferred Stock against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. HPI is less concentrated, with 21.0% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HPI | SCHD |
|---|---|---|
| Expense Ratio | 2.31% | 0.06%Best |
| AUM | $387M | $108.9B |
| Dividend Yield | 9.87% | 3.00% |
| Holdings | 175 | 206 |
| YTD Return | -7.77% | +20.89%Best |
| 1Y Return | -10.93% | +23.87%Best |
| 3Y Return (annualized) | +9.39% | +16.42%Best |
| 5Y Return (annualized) | +0.71% | +9.40%Best |
| Volatility (annualized) | 16.0% | 13.7%Best |
| Max Drawdown | -59.0% | -33.4%Best |
| $10,000 over 5 years | $10,360 | $15,671Best |
| Top 10 Weight | 21.0%Best | 41.8% |
| Fund Family | John Hancock Investment Management | Charles Schwab Asset Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | Aug 27, 2002 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 2, 2026 (15 years).
HPI vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
HPI vs SCHD Performance
John Hancock Preferred Income Fund (HPI) is an ETF from John Hancock Investment Management and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year HPI returned -10.93% while SCHD returned +23.87%. Year to date, HPI is down 7.77% versus a gain of 20.89% for SCHD.
Over three years, HPI compounded at +9.39% per year against +16.42% for SCHD; over five years the annualized figures are +0.71% and +9.40% respectively. Across the full 15-year window we track, SCHD has the edge at +11.07% annualized vs +0.67%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPI has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 13.7% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.0% for HPI and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HPI charges 2.31% per year while SCHD charges 0.06%. On a $10,000 position that is $231 vs $6 annually, a gap of $225 per year that compounds over a long holding period. On income, HPI currently yields 9.87% against 3.00% for SCHD.
Holdings Overlap
2.1% of HPI's money is in holdings SCHD also owns. 1.9% of SCHD's money is in holdings HPI also owns.
HPI and SCHD share little of their money.
The two holdings books were reported 196 days apart, HPI as of Feb 27, 2026 and SCHD as of Sep 11, 2026, so some of the difference between them is the time between the two reports rather than the funds.
2 positions in common, counted across the 94 positions we hold weights for in HPI and 99 in SCHD, against full books of 175 and 206.
What only one of them owns
Our book lists 96 positions for SCHD that do not appear in our book for HPI (98.0% of the fund), and 63 for HPI that do not appear in SCHD (63.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of HPI and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HPI or SCHD?
HPI has an expense ratio of 2.31% while SCHD charges 0.06%. SCHD is the cheaper option, by $225 a year on a $10,000 investment.
Which performed better, HPI or SCHD?
Over the past year HPI returned -10.93% vs +23.87% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HPI annualized +0.67% vs +11.07% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HPI or SCHD?
HPI has been the more volatile fund at 16.0% annualized versus 13.7% for SCHD. Worst drawdown: HPI -59.0% vs SCHD -33.4%.
Should I hold both HPI and SCHD?
HPI and SCHD have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between HPI and SCHD?
2.1% of HPI's money is in holdings SCHD also owns. 1.9% of SCHD's is in holdings HPI also owns. They hold 2 positions in common, counted across the 94 positions we hold weights for in HPI and 99 in SCHD.
Which pays a higher dividend, HPI or SCHD?
HPI yields 9.87% while SCHD yields 3.00%, so HPI currently pays the higher dividend yield.
Is SCHD better than HPI?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. HPI is less concentrated, with 21.0% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.