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.
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 | $474M | $666.9B |
| Dividend Yield | 9.76% | 1.07% |
| Holdings | 175 | 3,543 |
| YTD Return | -0.48% | +13.59%Best |
| 1Y Return | +0.20% | +20.00%Best |
| 3Y Return (annualized) | +8.43% | +20.95%Best |
| 5Y Return (annualized) | +1.71% | +11.81%Best |
| Volatility (annualized) | 19.3% | 15.0%Best |
| Max Drawdown | -77.7% | -56.6%Best |
| $10,000 over 5 years | $10,885 | $17,474Best |
| 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 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 17, 2003 to Sep 4, 2026 (23.2 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 +0.20% while VTI returned +20.00%. Year to date, HPS is down 0.48% versus a gain of 13.59% for VTI.
Over three years, HPS compounded at +8.43% per year against +20.95% for VTI; over five years the annualized figures are +1.71% and +11.81% respectively. Across the full 23-year window we track, VTI has the edge at +9.69% 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 15.0% 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 9.76% against 1.07% for VTI.
Holdings Overlap
At least 47.0% of HPS's money is in holdings VTI also owns.
Stated as a floor: for VTI, our book for it covers 92.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
The two holdings books were reported 123 days apart, HPS as of Feb 27, 2026 and VTI as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
44 positions in common, counted across the 95 positions we hold weights for in HPS and 2,787 in VTI, against full books of 175 and 3,543.
Top Shared Holdings
| Stock | Weight in HPS | Weight in VTI | Difference |
|---|---|---|---|
| WFCWells Fargo & Co. | 2.94% | 0.35% | 2.59% |
| BACBank Of America Corp | 2.57% | 0.50% | 2.07% |
| JPMJpmorgan Chase | 1.13% | 1.11% | 0.02% |
| TDSTelephone And Data System Preferred Stock | 2.04% | 0.00% | 2.04% |
| MSMorgan Stanley | 1.46% | 0.34% | 1.12% |
| NRGNrg Energy | 1.73% | 0.04% | 1.69% |
| DUKDuke Energy Corp | 1.60% | 0.14% | 1.46% |
| PCGPg&E Corp. | 1.35% | 0.05% | 1.30% |
| LNCLincoln National Corp. | 1.36% | 0.00% | 1.36% |
| KKRKkr & Co. Inc. Class a | 1.28% | 0.08% | 1.20% |
47.0% 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 +0.20% vs +20.00% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), HPS annualized -0.59% vs +9.69% 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 19.3% annualized versus 15.0% 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?
At least 47.0% of HPS's money is in holdings VTI also owns. Our book for VTI is partial, so the real figure is this or higher. They hold 44 positions in common, counted across the 95 positions we hold weights for in HPS and 2,787 in VTI.
Which pays a higher dividend, HPS or VTI?
HPS yields 9.76% while VTI yields 1.07%, 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. Which one suits a particular account depends on what it is for. This is information, not a recommendation.