HEQ vs VOO
John Hancock Hedged Equity & Income Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. HEQ delivered stronger 1-year returns. HEQ offers more diversification with 640 holdings.
Side-by-Side Comparison
| Metric | HEQ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.16% | 0.03% | |
| AUM | $146M | $997.4B | |
| Dividend Yield | 7.86% | 1.08% | |
| Holdings | 640 | 509 | |
| YTD Return | +14.35% | +12.25% | |
| 1Y Return | +21.22% | +20.92% | |
| 3Y Return (annualized) | +13.36% | +21.79% | |
| 5Y Return (annualized) | +7.06% | +13.05% | |
| Volatility (annualized) | 15.3% | 14.1% | |
| Max Drawdown | -59.7% | -34.3% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 26, 2011 | Sep 7, 2010 |
HEQ vs VOO Performance
John Hancock Hedged Equity & Income Fund (HEQ) is a ETF from John Hancock Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HEQ returned +21.22% while VOO returned +20.92%. Year to date, HEQ is up 14.35% versus a gain of 12.25% for VOO.
Over three years, HEQ compounded at +13.36% per year against +21.79% for VOO; over five years the annualized figures are +7.06% and +13.05% respectively. Across the full 15-year window we track, VOO has the edge at +13.45% annualized vs -0.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEQ has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.1% for VOO. 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 -34.3% for VOO. 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 VOO 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 1.08% for VOO.
Holdings Overlap
HEQ and VOO share 93 holdings out of 835 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 VOO?
HEQ has an expense ratio of 1.16% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, HEQ or VOO?
Over the past year HEQ returned +21.22% vs +20.92% for VOO, so HEQ leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized -0.08% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, HEQ or VOO?
HEQ has been the more volatile fund at 15.3% annualized versus 14.1% for VOO. Worst drawdown: HEQ -59.7% vs VOO -34.3%.
Should I hold both HEQ and VOO?
HEQ and VOO 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 VOO?
HEQ and VOO share 93 common holdings with a 16.7% weight overlap. Combined, they hold 835 unique securities.
Which pays a higher dividend, HEQ or VOO?
HEQ yields 7.86% while VOO yields 1.08%, so HEQ currently pays the higher dividend yield.
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