HPI vs. HPS

Last updated Jun 23, 2026

HPI (John Hancock Preferred Income Fund) and HPS (John Hancock Preferred Income Fund III) are both Preferred Stock/Convertible Bonds funds from John Hancock. Over the past 10 years, HPI returned 4.83%/yr vs 5.25%/yr for HPS. A 0.68 correlation means they provide meaningful diversification when combined. Both charge a 0.01% expense ratio.

Performance

HPI vs. HPS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in John Hancock Preferred Income Fund (HPI) 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, HPI achieves a 3.15% return, which is significantly lower than HPS's 3.62% return. Over the past 10 years, HPI has underperformed HPS with an annualized return of 4.83%, while HPS has yielded a comparatively higher 5.25% annualized return.

HPI

• 1D: -0.68%
• 1M: 1.22%
• YTD: 3.15%
• 6M: 1.86%
• 1Y: 11.41%
• 3Y*: 13.30%
• 5Y*: 3.04%
• 10Y*: 4.83%

HPS

• 1D: -1.25%
• 1M: -0.27%
• YTD: 3.62%
• 6M: 3.05%
• 1Y: 10.96%
• 3Y*: 11.39%
• 5Y*: 2.79%
• 10Y*: 5.25%

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

HPI vs. HPS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HPI John Hancock Preferred Income Fund	3.15%	6.54%	14.95%	8.34%	-15.79%	13.16%	-7.02%	30.89%	-4.79%	13.78%
HPS John Hancock Preferred Income Fund III	3.62%	4.86%	15.65%	7.66%	-16.56%	16.44%	-3.00%	31.43%	-8.37%	14.32%

Correlation

The correlation between HPI and HPS is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Jul 15, 2003	0.68

The correlation between HPI and HPS has been stable across timeframes, ranging from 0.62 to 0.69 - a consistent structural relationship.

Return for Risk

HPI vs. HPS — Risk / Return Rank

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

HPI

HPI Risk / Return Rank: 19
HPI Sharpe Ratio Rank: 22
HPI Sortino Ratio Rank: 22
HPI Omega Ratio Rank: 24
HPI Calmar Ratio Rank: 15
HPI Martin Ratio Rank: 12

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: 15

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.

HPI vs. HPS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for John Hancock Preferred Income Fund (HPI) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	HPI	HPS	Difference
Sharpe ratio: Return per unit of total volatility	1.26	1.13	+0.13
Sortino ratio: Return per unit of downside risk	1.84	1.62	+0.21
Omega ratio: Gain probability vs. loss probability	1.24	1.21	+0.03
Calmar ratio: Return relative to maximum drawdown	1.26	1.45	-0.19
Martin ratio: Return relative to average drawdown	3.36	3.79	-0.42

HPI vs. HPS - Sharpe Ratio Comparison

The current HPI Sharpe Ratio is 1.26, which is comparable to the HPS Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of HPI 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.

Drawdowns

HPI vs. HPS - Drawdown Comparison

The maximum HPI drawdown since its inception was -67.67%, roughly equal to the maximum HPS drawdown of -70.04%. Use the drawdown chart below to compare losses from any high point for HPI and HPS.

Drawdown Indicators

	HPI	HPS	Difference
Max Drawdown Largest peak-to-trough decline	-67.67%	-70.04%	+2.37%
Max Drawdown (1Y) Largest decline over 1 year	-9.12%	-7.61%	-1.51%
Max Drawdown (3Y) Largest decline over 3 years	-18.91%	-17.58%	-1.33%
Max Drawdown (5Y) Largest decline over 5 years	-30.10%	-29.39%	-0.71%
Max Drawdown (10Y) Largest decline over 10 years	-57.99%	-52.12%	-5.87%
Current Drawdown Current decline from peak	-2.62%	-3.32%	+0.70%
Average Drawdown Average peak-to-trough decline	-8.45%	-8.36%	-0.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	2.90%	+0.50%

Volatility

HPI vs. HPS - Volatility Comparison

John Hancock Preferred Income Fund (HPI) has a higher volatility of 2.78% compared to John Hancock Preferred Income Fund III (HPS) at 2.44%. This indicates that HPI's price experiences larger fluctuations and is considered to be riskier than HPS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HPI	HPS	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.78%	2.44%	+0.34%
Volatility (6M) Calculated over the trailing 6-month period	7.48%	7.27%	+0.21%
Volatility (1Y) Calculated over the trailing 1-year period	9.10%	9.71%	-0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.82%	15.67%	+0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.32%	21.47%	+2.85%

HPI vs. HPS - Expense Ratio Comparison

Both HPI and HPS have an expense ratio of 0.01%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

HPI vs. HPS - Dividend Comparison

HPI's dividend yield for the trailing twelve months is around 9.22%, which matches HPS's 9.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HPI John Hancock Preferred Income Fund	9.22%	9.15%	8.91%	9.39%	9.23%	7.14%	7.53%	7.69%	8.92%	7.84%	8.26%	7.69%
HPS John Hancock Preferred Income Fund III	9.25%	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 HPI and HPS in my portfolio?

HPI and HPS have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HPI or HPS?

HPI has higher volatility (2.78%) compared to HPS (2.44%). In terms of maximum drawdown, HPI dropped -67.67% vs HPS's -70.04%.

Which has better risk-adjusted returns?

HPI currently has the higher Sharpe Ratio (1.26 vs 1.13), 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.