HEQ vs VTI
John Hancock Hedged Equity & Income Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | HEQ | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.16% | 0.03% | |
| AUM | $146M | $666.9B | |
| Dividend Yield | 7.86% | 1.07% | |
| Holdings | 640 | 3,543 | |
| YTD Return | +14.83% | +13.14% | |
| 1Y Return | +21.96% | +22.35% | |
| 3Y Return (annualized) | +13.87% | +21.83% | |
| 5Y Return (annualized) | +7.16% | +12.01% | |
| Volatility (annualized) | 15.4% | 15.3% | |
| Max Drawdown | -59.7% | -56.6% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 26, 2011 | May 24, 2001 |
HEQ vs VTI Performance
John Hancock Hedged Equity & Income Fund (HEQ) is a ETF from John Hancock Investment Management and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HEQ returned +21.96% while VTI returned +22.35%. Year to date, HEQ is up 14.83% versus a gain of 13.14% for VTI.
Over three years, HEQ compounded at +13.87% per year against +21.83% for VTI; over five years the annualized figures are +7.16% and +12.01% respectively. Across the full 15-year window we track, VTI has the edge at +8.09% 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEQ charges 1.16% per year while VTI 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 1.07% for VTI.
Holdings Overlap
HEQ and VTI share 98 holdings out of 3112 unique holdings combined, representing a 15.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HEQ or VTI?
HEQ has an expense ratio of 1.16% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, HEQ or VTI?
Over the past year HEQ returned +21.96% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized -0.05% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, HEQ or VTI?
HEQ has been the more volatile fund at 15.4% annualized versus 15.3% for VTI. Worst drawdown: HEQ -59.7% vs VTI -56.6%.
Should I hold both HEQ and VTI?
HEQ and VTI have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEQ and VTI?
HEQ and VTI share 98 common holdings with a 15.6% weight overlap. Combined, they hold 3112 unique securities.
Which pays a higher dividend, HEQ or VTI?
HEQ yields 7.86% while VTI yields 1.07%, so HEQ currently pays the higher dividend yield.
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