FPF vs. HPS

Last updated Jun 4, 2026

FPF (First Trust Intermediate Duration Preferred and Income Fund) and HPS (John Hancock Preferred Income Fund III) are both Preferred Stock/Convertible Bonds funds. Over the past 10 years, FPF returned 5.63%/yr vs 5.37%/yr for HPS. At a 0.44 correlation, their price movements are largely independent. FPF charges 0.02%/yr vs 0.01%/yr for HPS.

Performance

FPF vs. HPS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Intermediate Duration Preferred and Income Fund (FPF) and John Hancock Preferred Income Fund III (HPS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FPF achieves a -0.26% return, which is significantly lower than HPS's 4.49% return. Both investments have delivered pretty close results over the past 10 years, with FPF having a 5.63% annualized return and HPS not far behind at 5.37%.

FPF

• 1D: -0.56%
• 1M: -1.34%
• YTD: -0.26%
• 6M: 1.13%
• 1Y: 7.85%
• 3Y*: 14.89%
• 5Y*: 1.54%
• 10Y*: 5.63%

HPS

• 1D: -0.07%
• 1M: -1.10%
• YTD: 4.49%
• 6M: 2.71%
• 1Y: 11.63%
• 3Y*: 10.94%
• 5Y*: 2.87%
• 10Y*: 5.37%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FPF vs. HPS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FPF First Trust Intermediate Duration Preferred and Income Fund	-0.26%	13.14%	20.90%	5.31%	-25.83%	9.12%	9.67%	28.24%	-11.97%	15.99%
HPS John Hancock Preferred Income Fund III	4.49%	4.86%	15.65%	7.66%	-16.56%	16.44%	-3.00%	31.43%	-8.37%	14.32%

Correlation

The correlation between FPF and HPS is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since May 28, 2013	0.44

The correlation between FPF and HPS shifts across timeframes, from 0.39 (1 year) to 0.53 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

FPF vs. HPS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FPF

FPF Risk / Return Rank: 10
FPF Sharpe Ratio Rank: 12
FPF Sortino Ratio Rank: 10
FPF Omega Ratio Rank: 12
FPF Calmar Ratio Rank: 8
FPF Martin Ratio Rank: 8

HPS

HPS Risk / Return Rank: 17
HPS Sharpe Ratio Rank: 18
HPS Sortino Ratio Rank: 17
HPS Omega Ratio Rank: 18
HPS Calmar Ratio Rank: 18
HPS Martin Ratio Rank: 14

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FPF vs. HPS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Intermediate Duration Preferred and Income Fund (FPF) and John Hancock Preferred Income Fund III (HPS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FPF	HPS	Difference
Sharpe ratio Return per unit of total volatility	0.91	1.22	-0.32
Sortino ratio Return per unit of downside risk	1.25	1.75	-0.50
Omega ratio Gain probability vs. loss probability	1.17	1.22	-0.05
Calmar ratio Return relative to maximum drawdown	0.78	1.53	-0.76
Martin ratio Return relative to average drawdown	2.45	4.07	-1.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FPF vs. HPS - Sharpe Ratio Comparison

The current FPF Sharpe Ratio is 0.91, which is comparable to the HPS Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of FPF and HPS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FPF	HPS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.91	1.22	-0.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	0.18	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	0.25	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.25	+0.01

Drawdowns

FPF vs. HPS - Drawdown Comparison

The maximum FPF drawdown since its inception was -53.78%, smaller than the maximum HPS drawdown of -70.04%. Use the drawdown chart below to compare losses from any high point for FPF and HPS.

Drawdown Indicators

	FPF	HPS	Difference
Max Drawdown Largest peak-to-trough decline	-53.78%	-70.04%	+16.26%
Max Drawdown (1Y) Largest decline over 1 year	-10.13%	-7.61%	-2.52%
Max Drawdown (3Y) Largest decline over 3 years	-11.81%	-17.58%	+5.77%
Max Drawdown (5Y) Largest decline over 5 years	-37.06%	-29.39%	-7.67%
Max Drawdown (10Y) Largest decline over 10 years	-53.78%	-52.12%	-1.66%
Current Drawdown Current decline from peak	-4.37%	-2.51%	-1.86%
Average Drawdown Average peak-to-trough decline	-8.42%	-8.37%	-0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.21%	2.86%	+0.35%

Volatility

FPF vs. HPS - Volatility Comparison

First Trust Intermediate Duration Preferred and Income Fund (FPF) and John Hancock Preferred Income Fund III (HPS) have volatilities of 2.74% and 2.65%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FPF	HPS	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.74%	2.65%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	7.20%	7.19%	+0.01%
Volatility (1Y) Calculated over the trailing 1-year period	8.69%	9.55%	-0.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.55%	15.67%	-1.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.01%	21.46%	+3.55%

FPF vs. HPS - Expense Ratio Comparison

FPF has a 0.02% expense ratio, which is higher than HPS's 0.01% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FPF vs. HPS - Dividend Comparison

FPF's dividend yield for the trailing twelve months is around 9.21%, more than HPS's 9.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FPF First Trust Intermediate Duration Preferred and Income Fund	9.21%	8.85%	9.17%	8.31%	8.62%	6.75%	6.55%	7.08%	8.79%	7.63%	9.31%	9.16%
HPS John Hancock Preferred Income Fund III	9.10%	9.16%	8.78%	9.34%	9.15%	7.04%	7.63%	7.41%	9.26%	7.82%	8.27%	7.53%

Frequently Asked Questions

Can I hold both FPF and HPS in my portfolio?

FPF and HPS have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FPF or HPS?

FPF has higher volatility (2.74%) compared to HPS (2.65%). In terms of maximum drawdown, FPF dropped -53.78% vs HPS's -70.04%.

Which has better risk-adjusted returns?

HPS currently has the higher Sharpe Ratio (1.22 vs 0.91), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.