PFD vs. HPS

Last updated Jun 23, 2026

PFD (Flaherty & Crumrine Preferred Income Fund) and HPS (John Hancock Preferred Income Fund III) are both Preferred Stock/Convertible Bonds funds. Over the past 10 years, PFD returned 3.86%/yr vs 5.25%/yr for HPS. At a 0.37 correlation, their price movements are largely independent. PFD charges 1.29%/yr vs 0.01%/yr for HPS.

Performance

PFD vs. HPS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Flaherty & Crumrine Preferred Income Fund (PFD) 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, PFD achieves a 0.18% return, which is significantly lower than HPS's 3.62% return. Over the past 10 years, PFD has underperformed HPS with an annualized return of 3.86%, while HPS has yielded a comparatively higher 5.25% annualized return.

PFD

• 1D: -0.09%
• 1M: 1.05%
• YTD: 0.18%
• 6M: 1.67%
• 1Y: 11.04%
• 3Y*: 12.86%
• 5Y*: -0.67%
• 10Y*: 3.86%

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)

PFD vs. HPS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFD Flaherty & Crumrine Preferred Income Fund	0.18%	12.96%	21.69%	-4.87%	-31.92%	-2.03%	29.67%	43.46%	-17.25%	10.69%
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 PFD and HPS is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since Jun 17, 2003	0.37

The correlation between PFD and HPS shifts across timeframes, from 0.37 (all time) to 0.48 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

PFD vs. HPS — Risk / Return Rank

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

PFD

PFD Risk / Return Rank: 20
PFD Sharpe Ratio Rank: 23
PFD Sortino Ratio Rank: 19
PFD Omega Ratio Rank: 26
PFD Calmar Ratio Rank: 17
PFD Martin Ratio Rank: 18

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.

PFD vs. HPS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Flaherty & Crumrine Preferred Income Fund (PFD) 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.

	PFD	HPS	Difference
Sharpe ratio: Return per unit of total volatility	1.27	1.13	+0.14
Sortino ratio: Return per unit of downside risk	1.69	1.62	+0.07
Omega ratio: Gain probability vs. loss probability	1.25	1.21	+0.04
Calmar ratio: Return relative to maximum drawdown	1.38	1.45	-0.07
Martin ratio: Return relative to average drawdown	4.42	3.79	+0.64

PFD vs. HPS - Sharpe Ratio Comparison

The current PFD Sharpe Ratio is 1.27, which is comparable to the HPS Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of PFD 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

PFD vs. HPS - Drawdown Comparison

The maximum PFD drawdown since its inception was -81.70%, which is greater than HPS's maximum drawdown of -70.04%. Use the drawdown chart below to compare losses from any high point for PFD and HPS.

Drawdown Indicators

	PFD	HPS	Difference
Max Drawdown Largest peak-to-trough decline	-81.70%	-70.04%	-11.66%
Max Drawdown (1Y) Largest decline over 1 year	-8.05%	-7.61%	-0.44%
Max Drawdown (3Y) Largest decline over 3 years	-14.29%	-17.58%	+3.29%
Max Drawdown (5Y) Largest decline over 5 years	-45.60%	-29.39%	-16.21%
Max Drawdown (10Y) Largest decline over 10 years	-53.39%	-52.12%	-1.27%
Current Drawdown Current decline from peak	-20.43%	-3.32%	-17.11%
Average Drawdown Average peak-to-trough decline	-17.23%	-8.36%	-8.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	2.90%	-0.40%

Volatility

PFD vs. HPS - Volatility Comparison

The current volatility for Flaherty & Crumrine Preferred Income Fund (PFD) is 1.43%, while John Hancock Preferred Income Fund III (HPS) has a volatility of 2.44%. This indicates that PFD experiences smaller price fluctuations and is considered to be less risky than HPS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFD	HPS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.43%	2.44%	-1.01%
Volatility (6M) Calculated over the trailing 6-month period	6.76%	7.27%	-0.51%
Volatility (1Y) Calculated over the trailing 1-year period	8.74%	9.71%	-0.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.47%	15.67%	+0.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.49%	21.47%	+2.02%

PFD vs. HPS - Expense Ratio Comparison

PFD has a 1.29% expense ratio, which is higher than HPS's 0.01% expense ratio.

Dividends

PFD vs. HPS - Dividend Comparison

PFD's dividend yield for the trailing twelve months is around 6.92%, less 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%
PFD Flaherty & Crumrine Preferred Income Fund	6.92%	6.47%	6.46%	6.94%	7.97%	5.82%	5.09%	5.85%	8.14%	6.85%	7.44%	8.36%

Frequently Asked Questions

Can I hold both PFD and HPS in my portfolio?

PFD and HPS have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFD or HPS?

HPS has higher volatility (2.44%) compared to PFD (1.43%). In terms of maximum drawdown, PFD dropped -81.70% vs HPS's -70.04%.

Which has better risk-adjusted returns?

PFD currently has the higher Sharpe Ratio (1.27 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.