HPS vs VXUS
HPS vs VXUS
John Hancock Preferred Income Fund III vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | HPS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.81% | 0.05% | |
| AUM | $474M | $156.5B | |
| Dividend Yield | 9.66% | 2.60% | |
| Holdings | 175 | 8,747 | |
| YTD Return | +3.41% | +14.57% | |
| 1Y Return | +6.54% | +27.82% | |
| 3Y Return (annualized) | +9.20% | +19.27% | |
| 5Y Return (annualized) | +2.41% | +9.28% | |
| Volatility (annualized) | 19.4% | 15.1% | |
| Max Drawdown | -77.7% | -39.9% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 18, 2003 | Jan 26, 2011 |
HPS vs VXUS Performance
John Hancock Preferred Income Fund III (HPS) is a ETF from John Hancock Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year HPS returned +6.54% while VXUS returned +27.82%. Year to date, HPS is up 3.41% versus a gain of 14.57% for VXUS.
Over three years, HPS compounded at +9.20% per year against +19.27% for VXUS; over five years the annualized figures are +2.41% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.43%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPS has been the more volatile fund, with annualized monthly volatility of 19.4% compared with 15.1% for VXUS. 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 -39.9% for VXUS. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPS charges 1.81% per year while VXUS charges 0.05%. On a $10,000 position that is $181 vs $5 annually, a gap of $176 per year that compounds over a long holding period. On income, HPS currently yields 9.66% against 2.60% for VXUS.
Holdings Overlap
HPS and VXUS share 6 holdings out of 7950 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HPS | Weight in VXUS | Difference |
|---|---|---|---|
| SAN:NZ | 1.34% | 0.42% | 0.92% |
| DTE:FF | 1.29% | 0.31% | 0.98% |
| TPG:AU | 1.39% | 0.00% | 1.39% |
| HBAN | Pro | Pro | Pro |
| STX:IE | Pro | Pro | Pro |
| CM:CA | Pro | Pro | Pro |
See all 6 holdings HPS shares with VXUS Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, HPS or VXUS?
HPS has an expense ratio of 1.81% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $176 per year of difference.
Which performed better, HPS or VXUS?
Over the past year HPS returned +6.54% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), HPS annualized -0.43% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, HPS or VXUS?
HPS has been the more volatile fund at 19.4% annualized versus 15.1% for VXUS. Worst drawdown: HPS -77.7% vs VXUS -39.9%.
Should I hold both HPS and VXUS?
HPS and VXUS have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPS and VXUS?
HPS and VXUS share 6 common holdings with a 1.0% weight overlap. Combined, they hold 7950 unique securities.
Which pays a higher dividend, HPS or VXUS?
HPS yields 9.66% while VXUS yields 2.60%, so HPS currently pays the higher dividend yield.
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