HPS vs. NCV

Last updated Jun 4, 2026

HPS (John Hancock Preferred Income Fund III) and NCV (Virtus Convertible and Income Fund) are both Preferred Stock/Convertible Bonds funds. Over the past 10 years, HPS returned 5.37%/yr vs 8.31%/yr for NCV. At a 0.42 correlation, their price movements are largely independent. HPS charges 0.01%/yr vs 0.03%/yr for NCV.

Performance

HPS vs. NCV - Performance Comparison

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

Returns By Period

In the year-to-date period, HPS achieves a 4.49% return, which is significantly lower than NCV's 19.08% return. Over the past 10 years, HPS has underperformed NCV with an annualized return of 5.37%, while NCV has yielded a comparatively higher 8.31% annualized return.

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%

NCV

• 1D: -1.37%
• 1M: 3.66%
• YTD: 19.08%
• 6M: 19.04%
• 1Y: 42.18%
• 3Y*: 23.31%
• 5Y*: 5.74%
• 10Y*: 8.31%

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

HPS vs. NCV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
NCV Virtus Convertible and Income Fund	19.08%	22.57%	16.18%	12.66%	-34.02%	10.68%	11.64%	24.12%	-17.25%	23.24%

Correlation

The correlation between HPS and NCV is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Jun 18, 2003	0.42

Return for Risk

HPS vs. NCV — Risk / Return Rank

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

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

NCV

NCV Risk / Return Rank: 80
NCV Sharpe Ratio Rank: 86
NCV Sortino Ratio Rank: 76
NCV Omega Ratio Rank: 74
NCV Calmar Ratio Rank: 81
NCV Martin Ratio Rank: 80

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.

HPS vs. NCV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for John Hancock Preferred Income Fund III (HPS) and Virtus Convertible and Income Fund (NCV). 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.

	HPS	NCV	Difference
Sharpe ratio: Return per unit of total volatility	1.22	2.81	-1.59
Sortino ratio: Return per unit of downside risk	1.75	3.65	-1.90
Omega ratio: Gain probability vs. loss probability	1.22	1.49	-0.27
Calmar ratio: Return relative to maximum drawdown	1.53	3.72	-2.19
Martin ratio: Return relative to average drawdown	4.07	15.08	-11.01
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HPS vs. NCV - Sharpe Ratio Comparison

The current HPS Sharpe Ratio is 1.22, which is lower than the NCV Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of HPS and NCV, 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

	HPS	NCV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.22	2.81	-1.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.18	0.28	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	0.34	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.24	+0.01

Drawdowns

HPS vs. NCV - Drawdown Comparison

The maximum HPS drawdown since its inception was -70.04%, smaller than the maximum NCV drawdown of -78.94%. Use the drawdown chart below to compare losses from any high point for HPS and NCV.

Drawdown Indicators

	HPS	NCV	Difference
Max Drawdown Largest peak-to-trough decline	-70.04%	-78.94%	+8.90%
Max Drawdown (1Y) Largest decline over 1 year	-7.61%	-11.38%	+3.77%
Max Drawdown (3Y) Largest decline over 3 years	-17.58%	-17.80%	+0.22%
Max Drawdown (5Y) Largest decline over 5 years	-29.39%	-44.60%	+15.21%
Max Drawdown (10Y) Largest decline over 10 years	-52.12%	-56.18%	+4.06%
Current Drawdown Current decline from peak	-2.51%	-1.37%	-1.14%
Average Drawdown Average peak-to-trough decline	-8.37%	-13.89%	+5.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.86%	2.80%	+0.06%

Volatility

HPS vs. NCV - Volatility Comparison

The current volatility for John Hancock Preferred Income Fund III (HPS) is 2.65%, while Virtus Convertible and Income Fund (NCV) has a volatility of 5.58%. This indicates that HPS experiences smaller price fluctuations and is considered to be less risky than NCV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HPS	NCV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.65%	5.58%	-2.93%
Volatility (6M) Calculated over the trailing 6-month period	7.19%	12.54%	-5.35%
Volatility (1Y) Calculated over the trailing 1-year period	9.55%	15.07%	-5.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.67%	20.59%	-4.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.46%	24.86%	-3.40%

HPS vs. NCV - Expense Ratio Comparison

HPS has a 0.01% expense ratio, which is lower than NCV's 0.03% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

HPS vs. NCV - Dividend Comparison

HPS's dividend yield for the trailing twelve months is around 9.10%, less than NCV's 9.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
NCV Virtus Convertible and Income Fund	9.43%	10.77%	11.76%	12.86%	15.00%	8.75%	9.41%	11.61%	15.03%	11.10%	12.23%	17.69%

Frequently Asked Questions

Can I hold both HPS and NCV in my portfolio?

HPS and NCV have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HPS or NCV?

NCV has higher volatility (5.58%) compared to HPS (2.65%). In terms of maximum drawdown, HPS dropped -70.04% vs NCV's -78.94%.

Which has better risk-adjusted returns?

NCV currently has the higher Sharpe Ratio (2.81 vs 1.22), 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.