HPS vs SCHD
John Hancock Preferred Income Fund III vs Schwab US Dividend Equity ETF
Which is better, HPS or SCHD?
Preferred Stock against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. HPS is less concentrated, with 21.6% of the fund in its ten largest positions against 41.5%.
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 | HPS | SCHD |
|---|---|---|
| Expense Ratio | 1.81% | 0.06%Best |
| AUM | $474M | $112.2B |
| Dividend Yield | 9.76% | 3.13% |
| Holdings | 175 | 103 |
| YTD Return | -0.48% | +27.56%Best |
| 1Y Return | +0.20% | +30.29%Best |
| 3Y Return (annualized) | +8.43% | +16.37%Best |
| 5Y Return (annualized) | +1.71% | +10.23%Best |
| Volatility (annualized) | 14.8% | 13.6%Best |
| Max Drawdown | -53.9% | -33.4%Best |
| $10,000 over 5 years | $10,885 | $16,274Best |
| Top 10 Weight | 21.6%Best | 41.5% |
| Fund Family | John Hancock Investment Management | Charles Schwab Asset Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | Jun 18, 2003 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).
HPS 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 covers the 14.9 years both funds cover.
HPS vs SCHD Performance
John Hancock Preferred Income Fund III (HPS) 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 HPS returned +0.20% while SCHD returned +30.29%. Year to date, HPS is down 0.48% versus a gain of 27.56% for SCHD.
Over three years, HPS compounded at +8.43% per year against +16.37% for SCHD; over five years the annualized figures are +1.71% and +10.23% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs +1.67%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPS has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -53.9% for HPS 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 0.63. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HPS charges 1.81% per year while SCHD charges 0.06%. On a $10,000 position that is $181 vs $6 annually, a gap of $175 per year that compounds over a long holding period. On income, HPS currently yields 9.76% against 3.13% for SCHD.
Holdings Overlap
2.1% of HPS's money is in holdings SCHD also owns. 2.0% of SCHD's money is in holdings HPS also owns.
HPS and SCHD share little of their money.
The two holdings books were reported 161 days apart, HPS as of Feb 27, 2026 and SCHD as of Aug 7, 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 95 positions we hold weights for in HPS and 100 in SCHD, against full books of 175 and 103.
What only one of them owns
Our book lists 96 positions for SCHD that do not appear in our book for HPS (97.7% of the fund), and 62 for HPS 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 HPS 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, HPS or SCHD?
HPS has an expense ratio of 1.81% while SCHD charges 0.06%. SCHD is the cheaper option, by $175 a year on a $10,000 investment.
Which performed better, HPS or SCHD?
Over the past year HPS returned +0.20% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HPS annualized +1.67% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HPS or SCHD?
HPS has been the more volatile fund at 14.8% annualized versus 13.6% for SCHD. Worst drawdown: HPS -53.9% vs SCHD -33.4%.
Should I hold both HPS and SCHD?
HPS and SCHD have a monthly-return correlation of 0.63, 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 HPS and SCHD?
2.1% of HPS's money is in holdings SCHD also owns. 2.0% of SCHD's is in holdings HPS also owns. They hold 2 positions in common, counted across the 95 positions we hold weights for in HPS and 100 in SCHD.
Which pays a higher dividend, HPS or SCHD?
HPS yields 9.76% while SCHD yields 3.13%, so HPS currently pays the higher dividend yield.
Is SCHD better than HPS?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. HPS is less concentrated, with 21.6% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.