HPS vs VOO
John Hancock Preferred Income Fund III vs Vanguard S&P 500 ETF
Which is better, HPS or VOO?
Preferred Stock against Large Cap Blend.
VOO has a lower expense ratio. VOO 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 36.4%.
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 | VOO |
|---|---|---|
| Expense Ratio | 1.81% | 0.03%Best |
| AUM | $474M | $997.4B |
| Dividend Yield | 9.76% | 1.08% |
| Holdings | 175 | 509 |
| YTD Return | -0.48% | +13.37%Best |
| 1Y Return | +0.20% | +20.08%Best |
| 3Y Return (annualized) | +8.43% | +21.29%Best |
| 5Y Return (annualized) | +1.71% | +12.89%Best |
| Volatility (annualized) | 14.7% | 14.1%Best |
| Max Drawdown | -53.9% | -34.3%Best |
| $10,000 over 5 years | $10,885 | $18,335Best |
| Top 10 Weight | 21.6%Best | 36.4% |
| Fund Family | John Hancock Investment Management | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Jun 18, 2003 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 4, 2026 (16 years).
HPS vs VOO 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 VOO Performance
John Hancock Preferred Income Fund III (HPS) is an ETF from John Hancock Investment Management and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year HPS returned +0.20% while VOO returned +20.08%. Year to date, HPS is down 0.48% versus a gain of 13.37% for VOO.
Over three years, HPS compounded at +8.43% per year against +21.29% for VOO; over five years the annualized figures are +1.71% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.48% annualized vs +1.32%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPS has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 14.1% for VOO. 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 -34.3% for VOO. 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 VOO 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 1.08% for VOO.
Holdings Overlap
28.3% of HPS's money is in holdings VOO also owns. 4.5% of VOO's money is in holdings HPS also owns.
HPS and VOO share little of their money.
The two holdings books were reported 123 days apart, HPS as of Feb 27, 2026 and VOO as of Jun 30, 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 505 in VOO, against full books of 175 and 509.
What only one of them owns
Our book lists 472 positions for VOO that do not appear in our book for HPS (95.0% of the fund), and 39 for HPS that do not appear in VOO (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 VOO | Difference |
|---|---|---|---|
| WFCWells Fargo & Co. | 2.94% | 0.39% | 2.55% |
| BACBank Of America Corp | 2.57% | 0.58% | 1.99% |
| JPMJpmorgan Chase | 1.13% | 1.26% | 0.13% |
| MSMorgan Stanley | 1.46% | 0.39% | 1.07% |
| NRGNrg Energy | 1.73% | 0.05% | 1.68% |
| 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% | 0.10% | 1.18% |
| NEENextera Energy Inc | 1.10% | 0.28% | 0.82% |
| MTBM&T Bank Corp | 1.25% | 0.05% | 1.20% |
28.3% of HPS is already inside VOO.
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 VOO?
HPS has an expense ratio of 1.81% while VOO charges 0.03%. VOO is the cheaper option, by $178 a year on a $10,000 investment.
Which performed better, HPS or VOO?
Over the past year HPS returned +0.20% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), HPS annualized +1.32% vs +13.48% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HPS or VOO?
HPS has been the more volatile fund at 14.7% annualized versus 14.1% for VOO. Worst drawdown: HPS -53.9% vs VOO -34.3%.
Should I hold both HPS and VOO?
HPS and VOO 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 VOO?
28.3% of HPS's money is in holdings VOO also owns. 4.5% of VOO'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 505 in VOO.
Which pays a higher dividend, HPS or VOO?
HPS yields 9.76% while VOO yields 1.08%, so HPS currently pays the higher dividend yield.
Is VOO better than HPS?
VOO has a lower expense ratio. VOO 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 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.