HPI vs SCHD
John Hancock Preferred Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HPI offers more diversification with 175 holdings.
Side-by-Side Comparison
| Metric | HPI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.06% | |
| AUM | $443M | $108.7B | |
| Dividend Yield | 9.80% | 3.13% | |
| Holdings | 175 | 104 | |
| YTD Return | +3.77% | +26.50% | |
| 1Y Return | +10.14% | +31.25% | |
| 3Y Return (annualized) | +11.01% | +16.34% | |
| 5Y Return (annualized) | +2.90% | +10.10% | |
| Volatility (annualized) | 19.6% | 13.6% | |
| Max Drawdown | -75.0% | -33.4% | |
| Fund Family | John Hancock Investment Management | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 27, 2002 | Oct 20, 2011 |
HPI vs SCHD Performance
John Hancock Preferred Income Fund (HPI) is a ETF from John Hancock Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HPI returned +10.14% while SCHD returned +31.25%. Year to date, HPI is up 3.77% versus a gain of 26.50% for SCHD.
Over three years, HPI compounded at +11.01% per year against +16.34% for SCHD; over five years the annualized figures are +2.90% and +10.10% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +0.17%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPI has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 13.6% 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 -75.0% for HPI and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
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 9.80% against 3.13% for SCHD.
Holdings Overlap
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. On a $10,000 investment, that is $225 per year of difference.
Which performed better, HPI or SCHD?
Over the past year HPI returned +10.14% vs +31.25% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HPI annualized +0.17% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, HPI or SCHD?
HPI has been the more volatile fund at 19.6% annualized versus 13.6% for SCHD. Worst drawdown: HPI -75.0% vs SCHD -33.4%.
Should I hold both HPI and SCHD?
HPI and SCHD have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPI and SCHD?
HPI and SCHD share 2 common holdings with a 1.8% weight overlap. Combined, they hold 192 unique securities.
Which pays a higher dividend, HPI or SCHD?
HPI yields 9.80% while SCHD yields 3.13%, so HPI currently pays the higher dividend yield.
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