HPS vs IVV
John Hancock Preferred Income Fund III vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | HPS | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.81% | 0.03% | |
| AUM | $474M | $907.0B | |
| Dividend Yield | 9.76% | 1.10% | |
| Holdings | 175 | 508 | |
| YTD Return | +2.23% | +12.28% | |
| 1Y Return | +3.83% | +20.94% | |
| 3Y Return (annualized) | +9.82% | +21.81% | |
| 5Y Return (annualized) | +2.36% | +13.05% | |
| Volatility (annualized) | 19.4% | 15.1% | |
| Max Drawdown | -77.7% | -56.5% | |
| Fund Family | John Hancock Investment Management | iShares by BlackRock (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 18, 2003 | May 15, 2000 |
HPS vs IVV Performance
John Hancock Preferred Income Fund III (HPS) is a ETF from John Hancock Investment Management and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year HPS returned +3.83% while IVV returned +20.94%. Year to date, HPS is up 2.23% versus a gain of 12.28% for IVV.
Over three years, HPS compounded at +9.82% per year against +21.81% for IVV; over five years the annualized figures are +2.36% and +13.05% respectively. Across the full 23-year window we track, IVV has the edge at +6.98% annualized vs -0.48%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPS has been the more volatile fund, with annualized monthly volatility of 19.4% compared with 15.1% for IVV. 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 -77.7% for HPS and -56.5% for IVV. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPS charges 1.81% per year while IVV charges 0.03%. On a $10,000 position that is $181 vs $3 annually, a gap of $178 per year that compounds over a long holding period. On income, HPS currently yields 9.76% against 1.10% for IVV.
Holdings Overlap
HPS and IVV share 24 holdings out of 576 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HPS or IVV?
HPS has an expense ratio of 1.81% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $178 per year of difference.
Which performed better, HPS or IVV?
Over the past year HPS returned +3.83% vs +20.94% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (23 years), HPS annualized -0.48% vs +6.98% for IVV. Past performance does not guarantee future results.
Which is riskier, HPS or IVV?
HPS has been the more volatile fund at 19.4% annualized versus 15.1% for IVV. Worst drawdown: HPS -77.7% vs IVV -56.5%.
Should I hold both HPS and IVV?
HPS and IVV have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPS and IVV?
HPS and IVV share 24 common holdings with a 3.8% weight overlap. Combined, they hold 576 unique securities.
Which pays a higher dividend, HPS or IVV?
HPS yields 9.76% while IVV yields 1.10%, so HPS currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.