HPS vs VYM
John Hancock Preferred Income Fund III vs Vanguard High Dividend Yield ETF
Which is better, HPS or VYM?
Preferred Stock against Large Cap Value.
VYM has a lower expense ratio. VYM 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 25.9%.
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 | VYM |
|---|---|---|
| Expense Ratio | 1.81% | 0.04%Best |
| AUM | $474M | $81.6B |
| Dividend Yield | 9.76% | 2.24% |
| Holdings | 175 | 613 |
| YTD Return | -0.48% | +14.82%Best |
| 1Y Return | +0.20% | +20.84%Best |
| 3Y Return (annualized) | +8.43% | +18.64%Best |
| 5Y Return (annualized) | +1.71% | +12.28%Best |
| Volatility (annualized) | 20.3% | 14.5%Best |
| Max Drawdown | -75.3% | -58.8%Best |
| $10,000 over 5 years | $10,885 | $17,845Best |
| Top 10 Weight | 21.6%Best | 25.9% |
| Fund Family | John Hancock Investment Management | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | Jun 18, 2003 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 4, 2026 (19.8 years).
HPS vs VYM 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 covers the 19.8 years both funds cover.
HPS vs VYM Performance
John Hancock Preferred Income Fund III (HPS) is an ETF from John Hancock Investment Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year HPS returned +0.20% while VYM returned +20.84%. Year to date, HPS is down 0.48% versus a gain of 14.82% for VYM.
Over three years, HPS compounded at +8.43% per year against +18.64% for VYM; over five years the annualized figures are +1.71% and +12.28% respectively. Across the full 20-year window we track, VYM has the edge at +7.00% annualized vs -0.07%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPS has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 14.5% for VYM. 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 -75.3% for HPS and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.50. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HPS charges 1.81% per year while VYM charges 0.04%. On a $10,000 position that is $181 vs $4 annually, a gap of $177 per year that compounds over a long holding period. On income, HPS currently yields 9.76% against 2.24% for VYM.
Holdings Overlap
40.2% of HPS's money is in holdings VYM also owns. 11.5% of VYM's money is in holdings HPS also owns.
The two portfolios partly overlap.
The two holdings books were reported 123 days apart, HPS as of Feb 27, 2026 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
38 positions in common, counted across the 95 positions we hold weights for in HPS and 603 in VYM, against full books of 175 and 613.
What only one of them owns
Our book lists 534 positions for VYM that do not appear in our book for HPS (85.9% of the fund), and 26 for HPS that do not appear in VYM (24.9%).
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 VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 1.13% | 3.38% | 2.25% |
| BACBank Of America Corp | 2.57% | 1.56% | 1.01% |
| WFCWells Fargo & Co. | 2.94% | 1.05% | 1.89% |
| MSMorgan Stanley | 1.46% | 0.97% | 0.49% |
| DUKDuke Energy Corp | 1.60% | 0.41% | 1.19% |
| NEENextera Energy Inc | 1.10% | 0.76% | 0.34% |
| NRGNrg Energy | 1.73% | 0.12% | 1.61% |
| RGAReinsurance Group of America, Incorporated | 1.47% | 0.06% | 1.41% |
| MTBM&T Bank Corp | 1.25% | 0.15% | 1.10% |
| LNCLincoln National Corp. | 1.36% | 0.03% | 1.33% |
40.2% of HPS is already inside VYM.
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 VYM?
HPS has an expense ratio of 1.81% while VYM charges 0.04%. VYM is the cheaper option, by $177 a year on a $10,000 investment.
Which performed better, HPS or VYM?
Over the past year HPS returned +0.20% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), HPS annualized -0.07% vs +7.00% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HPS or VYM?
HPS has been the more volatile fund at 20.3% annualized versus 14.5% for VYM. Worst drawdown: HPS -75.3% vs VYM -58.8%.
Should I hold both HPS and VYM?
HPS and VYM have a monthly-return correlation of 0.50, 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 VYM?
40.2% of HPS's money is in holdings VYM also owns. 11.5% of VYM's is in holdings HPS also owns. They hold 38 positions in common, counted across the 95 positions we hold weights for in HPS and 603 in VYM.
Which pays a higher dividend, HPS or VYM?
HPS yields 9.76% while VYM yields 2.24%, so HPS currently pays the higher dividend yield.
Is VYM better than HPS?
VYM has a lower expense ratio. VYM 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 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.