HEQ vs IVV
John Hancock Hedged Equity & Income Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. HEQ delivered stronger 1-year returns. HEQ offers more diversification with 640 holdings.
Side-by-Side Comparison
| Metric | HEQ | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.16% | 0.03% | |
| AUM | $146M | $907.0B | |
| Dividend Yield | 7.86% | 1.10% | |
| Holdings | 640 | 508 | |
| YTD Return | +14.83% | +12.71% | |
| 1Y Return | +21.96% | +21.89% | |
| 3Y Return (annualized) | +13.87% | +22.08% | |
| 5Y Return (annualized) | +7.16% | +12.96% | |
| Volatility (annualized) | 15.4% | 15.1% | |
| Max Drawdown | -59.7% | -56.5% | |
| Fund Family | John Hancock Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | May 26, 2011 | May 15, 2000 |
HEQ vs IVV Performance
John Hancock Hedged Equity & Income Fund (HEQ) is a ETF from John Hancock Investment Management and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year HEQ returned +21.96% while IVV returned +21.89%. Year to date, HEQ is up 14.83% versus a gain of 12.71% for IVV.
Over three years, HEQ compounded at +13.87% per year against +22.08% for IVV; over five years the annualized figures are +7.16% and +12.96% respectively. Across the full 15-year window we track, IVV has the edge at +7.00% annualized vs -0.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEQ has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.7% for HEQ and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEQ charges 1.16% per year while IVV charges 0.03%. On a $10,000 position that is $116 vs $3 annually, a gap of $113 per year that compounds over a long holding period. On income, HEQ currently yields 7.86% against 1.10% for IVV.
Holdings Overlap
HEQ and IVV share 92 holdings out of 836 unique holdings combined, representing a 16.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HEQ or IVV?
HEQ has an expense ratio of 1.16% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, HEQ or IVV?
Over the past year HEQ returned +21.96% vs +21.89% for IVV, so HEQ leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized -0.05% vs +7.00% for IVV. Past performance does not guarantee future results.
Which is riskier, HEQ or IVV?
HEQ has been the more volatile fund at 15.4% annualized versus 15.1% for IVV. Worst drawdown: HEQ -59.7% vs IVV -56.5%.
Should I hold both HEQ and IVV?
HEQ and IVV have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEQ and IVV?
HEQ and IVV share 92 common holdings with a 16.7% weight overlap. Combined, they hold 836 unique securities.
Which pays a higher dividend, HEQ or IVV?
HEQ yields 7.86% while IVV yields 1.10%, so HEQ currently pays the higher dividend yield.
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