HPS vs SPY
John Hancock Preferred Income Fund III vs State Street SPDR S&P 500 ETF Trust
Which is better, HPS or SPY?
Preferred Stock against Large Cap Blend.
SPY has a lower expense ratio. SPY 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 38.0%.
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 | SPY |
|---|---|---|
| Expense Ratio | 1.81% | 0.09%Best |
| AUM | $474M | $814.4B |
| Dividend Yield | 9.76% | 1.01% |
| Holdings | 175 | 505 |
| YTD Return | -0.48% | +13.34%Best |
| 1Y Return | +0.20% | +19.97%Best |
| 3Y Return (annualized) | +8.43% | +21.20%Best |
| 5Y Return (annualized) | +1.71% | +12.81%Best |
| Volatility (annualized) | 19.3% | 14.5%Best |
| Max Drawdown | -77.7% | -56.5%Best |
| $10,000 over 5 years | $10,885 | $18,270Best |
| Top 10 Weight | 21.6%Best | 38.0% |
| Fund Family | John Hancock Investment Management | State Street Investment Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Jun 18, 2003 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jun 17, 2003 to Sep 4, 2026 (23.2 years).
HPS vs SPY 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.
HPS vs SPY Performance
John Hancock Preferred Income Fund III (HPS) is an ETF from John Hancock Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year HPS returned +0.20% while SPY returned +19.97%. Year to date, HPS is down 0.48% versus a gain of 13.34% for SPY.
Over three years, HPS compounded at +8.43% per year against +21.20% for SPY; over five years the annualized figures are +1.71% and +12.81% respectively. Across the full 23-year window we track, SPY has the edge at +9.46% annualized vs -0.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPS has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 14.5% for SPY. 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 SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.49. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HPS charges 1.81% per year while SPY charges 0.09%. On a $10,000 position that is $181 vs $9 annually, a gap of $172 per year that compounds over a long holding period. On income, HPS currently yields 9.76% against 1.01% for SPY.
Holdings Overlap
28.3% of HPS's money is in holdings SPY also owns. 4.7% of SPY's money is in holdings HPS also owns.
HPS and SPY share little of their money.
The two holdings books were reported 158 days apart, HPS as of Feb 27, 2026 and SPY as of Aug 4, 2026, so some of the difference between them is the time between the two reports rather than the funds.
25 positions in common, counted across the 95 positions we hold weights for in HPS and 504 in SPY, against full books of 175 and 505.
What only one of them owns
Our book lists 471 positions for SPY that do not appear in our book for HPS (94.7% of the fund), and 39 for HPS that do not appear in SPY (36.8%).
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.
Top Shared Holdings
| Stock | Weight in HPS | Weight in SPY | Difference |
|---|---|---|---|
| WFCWells Fargo & Co. | 2.94% | 0.41% | 2.53% |
| BACBank Of America Corp | 2.57% | 0.62% | 1.95% |
| JPMJpmorgan Chase | 1.13% | 1.44% | 0.31% |
| MSMorgan Stanley | 1.46% | 0.39% | 1.07% |
| NRGNrg Energy | 1.73% | 0.04% | 1.69% |
| DUKDuke Energy Corp | 1.60% | 0.15% | 1.45% |
| PCGPg&E Corp. | 1.35% | 0.06% | 1.29% |
| KKRKkr & Co. Inc. Class a | 1.28% | 0.11% | 1.17% |
| NEENextera Energy Inc | 1.10% | 0.27% | 0.83% |
| MTBM&T Bank Corp | 1.25% | 0.06% | 1.19% |
28.3% of HPS is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HPS or SPY?
HPS has an expense ratio of 1.81% while SPY charges 0.09%. SPY is the cheaper option, by $172 a year on a $10,000 investment.
Which performed better, HPS or SPY?
Over the past year HPS returned +0.20% vs +19.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), HPS annualized -0.59% vs +9.46% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HPS or SPY?
HPS has been the more volatile fund at 19.3% annualized versus 14.5% for SPY. Worst drawdown: HPS -77.7% vs SPY -56.5%.
Should I hold both HPS and SPY?
HPS and SPY have a monthly-return correlation of 0.49, 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 SPY?
28.3% of HPS's money is in holdings SPY also owns. 4.7% of SPY's is in holdings HPS also owns. They hold 25 positions in common, counted across the 95 positions we hold weights for in HPS and 504 in SPY.
Which pays a higher dividend, HPS or SPY?
HPS yields 9.76% while SPY yields 1.01%, so HPS currently pays the higher dividend yield.
Is SPY better than HPS?
SPY has a lower expense ratio. SPY 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 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.