NCV vs. HPS

Last updated Jun 23, 2026

NCV (Virtus Convertible and Income Fund) and HPS (John Hancock Preferred Income Fund III) are both Preferred Stock/Convertible Bonds funds. Over the past 10 years, NCV returned 8.43%/yr vs 5.25%/yr for HPS. At a 0.42 correlation, their price movements are largely independent. NCV charges 0.03%/yr vs 0.01%/yr for HPS.

Performance

NCV vs. HPS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Convertible and Income Fund (NCV) 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, NCV achieves a 21.00% return, which is significantly higher than HPS's 3.62% return. Over the past 10 years, NCV has outperformed HPS with an annualized return of 8.43%, while HPS has yielded a comparatively lower 5.25% annualized return.

NCV

• 1D: -0.74%
• 1M: 2.20%
• YTD: 21.00%
• 6M: 18.96%
• 1Y: 42.83%
• 3Y*: 22.80%
• 5Y*: 5.04%
• 10Y*: 8.43%

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)

NCV vs. HPS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NCV Virtus Convertible and Income Fund	21.00%	22.57%	16.18%	12.66%	-34.02%	10.68%	11.64%	24.12%	-17.25%	23.24%
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 NCV 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	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Jun 17, 2003	0.42

Return for Risk

NCV vs. HPS — Risk / Return Rank

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

NCV

NCV Risk / Return Rank: 85
NCV Sharpe Ratio Rank: 91
NCV Sortino Ratio Rank: 83
NCV Omega Ratio Rank: 81
NCV Calmar Ratio Rank: 85
NCV Martin Ratio Rank: 86

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.

NCV vs. HPS - Risk-Adjusted Trends Comparison

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

	NCV	HPS	Difference
Sharpe ratio: Return per unit of total volatility	2.81	1.13	+1.67
Sortino ratio: Return per unit of downside risk	3.65	1.62	+2.02
Omega ratio: Gain probability vs. loss probability	1.48	1.21	+0.28
Calmar ratio: Return relative to maximum drawdown	3.78	1.45	+2.33
Martin ratio: Return relative to average drawdown	15.13	3.79	+11.35

NCV vs. HPS - Sharpe Ratio Comparison

The current NCV Sharpe Ratio is 2.81, which is higher than the HPS Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of NCV 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

NCV vs. HPS - Drawdown Comparison

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

Drawdown Indicators

	NCV	HPS	Difference
Max Drawdown Largest peak-to-trough decline	-78.94%	-70.04%	-8.90%
Max Drawdown (1Y) Largest decline over 1 year	-11.38%	-7.61%	-3.77%
Max Drawdown (3Y) Largest decline over 3 years	-17.80%	-17.58%	-0.22%
Max Drawdown (5Y) Largest decline over 5 years	-44.60%	-29.39%	-15.21%
Max Drawdown (10Y) Largest decline over 10 years	-56.18%	-52.12%	-4.06%
Current Drawdown Current decline from peak	-0.74%	-3.32%	+2.58%
Average Drawdown Average peak-to-trough decline	-13.86%	-8.36%	-5.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	2.90%	-0.06%

Volatility

NCV vs. HPS - Volatility Comparison

Virtus Convertible and Income Fund (NCV) has a higher volatility of 4.05% compared to John Hancock Preferred Income Fund III (HPS) at 2.44%. This indicates that NCV'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

	NCV	HPS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	2.44%	+1.61%
Volatility (6M) Calculated over the trailing 6-month period	12.72%	7.27%	+5.45%
Volatility (1Y) Calculated over the trailing 1-year period	15.37%	9.71%	+5.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.62%	15.67%	+4.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.86%	21.47%	+3.39%

NCV vs. HPS - Expense Ratio Comparison

NCV has a 0.03% 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

NCV vs. HPS - Dividend Comparison

NCV's dividend yield for the trailing twelve months is around 9.36%, more than HPS's 9.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
NCV Virtus Convertible and Income Fund	9.36%	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 NCV and HPS in my portfolio?

NCV 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, NCV or HPS?

NCV has higher volatility (4.05%) compared to HPS (2.44%). In terms of maximum drawdown, NCV dropped -78.94% vs HPS's -70.04%.

Which has better risk-adjusted returns?

NCV currently has the higher Sharpe Ratio (2.81 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.