HPF vs IVV
John Hancock Preferred Income Fund II vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | HPF | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.82% | 0.03% | |
| AUM | $355M | $865.2B | |
| Dividend Yield | 9.77% | 1.09% | |
| Holdings | 169 | 508 | |
| YTD Return | +4.26% | +14.50% | |
| 1Y Return | +7.82% | +22.02% | |
| 3Y Return (annualized) | +10.45% | +21.80% | |
| 5Y Return (annualized) | +1.63% | +13.37% | |
| Volatility (annualized) | 19.2% | 15.1% | |
| Max Drawdown | -74.3% | -56.5% | |
| Fund Family | John Hancock Investment Management | iShares by BlackRock (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 29, 2002 | May 15, 2000 |
HPF vs IVV Performance
John Hancock Preferred Income Fund II (HPF) 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 HPF returned +7.82% while IVV returned +22.02%. Year to date, HPF is up 4.26% versus a gain of 14.50% for IVV.
Over three years, HPF compounded at +10.45% per year against +21.80% for IVV; over five years the annualized figures are +1.63% and +13.37% respectively. Across the full 24-year window we track, IVV has the edge at +7.07% annualized vs +0.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPF has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -74.3% for HPF 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPF charges 1.82% per year while IVV charges 0.03%. On a $10,000 position that is $182 vs $3 annually, a gap of $179 per year that compounds over a long holding period. On income, HPF currently yields 9.77% against 1.09% for IVV.
Holdings Overlap
HPF and IVV share 17 holdings out of 539 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HPF or IVV?
HPF has an expense ratio of 1.82% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $179 per year of difference.
Which performed better, HPF or IVV?
Over the past year HPF returned +7.82% vs +22.02% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (24 years), HPF annualized +0.10% vs +7.07% for IVV. Past performance does not guarantee future results.
Which is riskier, HPF or IVV?
HPF has been the more volatile fund at 19.2% annualized versus 15.1% for IVV. Worst drawdown: HPF -74.3% vs IVV -56.5%.
Should I hold both HPF and IVV?
HPF and IVV have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPF and IVV?
HPF and IVV share 17 common holdings with a 2.1% weight overlap. Combined, they hold 539 unique securities.
Which pays a higher dividend, HPF or IVV?
HPF yields 9.77% while IVV yields 1.09%, so HPF currently pays the higher dividend yield.
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