HPS vs VTI
John Hancock Preferred Income Fund III vs Vanguard Morningstar Total Stock Market ETF
Which is better, HPS or VTI?
Preferred Stock against Large Cap Blend.
VTI has a lower expense ratio. VTI 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 33.3%.
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 | VTI |
|---|---|---|
| Expense Ratio | 1.81% | 0.03%Best |
| AUM | $415M | $690.1B |
| Dividend Yield | 9.82% | 1.03% |
| Holdings | 175 | 3,524 |
| YTD Return | -11.59% | +12.51%Best |
| 1Y Return | -15.67% | +15.23%Best |
| 3Y Return (annualized) | +5.99% | +22.50%Best |
| 5Y Return (annualized) | -0.33% | +12.31%Best |
| Volatility (annualized) | 19.5% | 14.9%Best |
| Max Drawdown | -77.7% | -56.6%Best |
| $10,000 over 5 years | $9,836 | $17,869Best |
| Top 10 Weight | 21.6%Best | 33.3% |
| Fund Family | John Hancock Investment Management | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Jun 18, 2003 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Jun 17, 2003 to Oct 1, 2026 (23.3 years).
HPS vs VTI 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 VTI Performance
John Hancock Preferred Income Fund III (HPS) is an ETF from John Hancock Investment Management and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year HPS returned -15.67% while VTI returned +15.23%. Year to date, HPS is down 11.59% versus a gain of 12.51% for VTI.
Over three years, HPS compounded at +5.99% per year against +22.50% for VTI; over five years the annualized figures are -0.33% and +12.31% respectively. Across the full 23-year window we track, VTI has the edge at +9.61% annualized vs -1.09%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPS has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 14.9% for VTI. 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 -56.6% for VTI. 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 VTI 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 9.82% against 1.03% for VTI.
Holdings Overlap
53.1% of HPS's money is in holdings VTI also owns. 4.5% of VTI's money is in holdings HPS also owns.
The two portfolios partly overlap.
The two holdings books were reported 154 days apart, HPS as of Feb 27, 2026 and VTI as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
51 positions in common, counted across the 95 positions we hold weights for in HPS and 3,463 in VTI, against full books of 175 and 3,524.
What only one of them owns
Our book lists 1,107 positions for VTI that do not appear in our book for HPS (92.9% of the fund), and 13 for HPS that do not appear in VTI (12.8%).
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 VTI | Difference |
|---|---|---|---|
| WFCWells Fargo & Co. | 2.94% | 0.37% | 2.57% |
| BACBank Of America Corp | 2.57% | 0.55% | 2.02% |
| JPMJpmorgan Chase | 1.13% | 1.31% | 0.18% |
| TDSTelephone And Data System Preferred Stock | 2.04% | 0.00% | 2.04% |
| MSMorgan Stanley | 1.46% | 0.35% | 1.11% |
| NRGNrg Energy | 1.73% | 0.04% | 1.69% |
| DUKDuke Energy Corp | 1.60% | 0.14% | 1.46% |
| AMGAffiliated Managers Group Inc. | 1.51% | 0.01% | 1.50% |
| RGAReinsurance Group of America, Incorporated | 1.47% | 0.02% | 1.45% |
| PCGPg&E Corp. | 1.35% | 0.05% | 1.30% |
53.1% of HPS is already inside VTI.
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 VTI?
HPS has an expense ratio of 1.81% while VTI charges 0.03%. VTI is the cheaper option, by $178 a year on a $10,000 investment.
Which performed better, HPS or VTI?
Over the past year HPS returned -15.67% vs +15.23% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), HPS annualized -1.09% vs +9.61% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HPS or VTI?
HPS has been the more volatile fund at 19.5% annualized versus 14.9% for VTI. Worst drawdown: HPS -77.7% vs VTI -56.6%.
Should I hold both HPS and VTI?
HPS and VTI 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 VTI?
53.1% of HPS's money is in holdings VTI also owns. 4.5% of VTI's is in holdings HPS also owns. They hold 51 positions in common, counted across the 95 positions we hold weights for in HPS and 3,463 in VTI.
Which pays a higher dividend, HPS or VTI?
HPS yields 9.82% while VTI yields 1.03%, so HPS currently pays the higher dividend yield.
Is VTI better than HPS?
VTI has a lower expense ratio. VTI 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 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.