HPF vs QQQ
John Hancock Preferred Income Fund II vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | HPF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.82% | 0.18% | |
| AUM | $355M | $455.8B | |
| Dividend Yield | 9.77% | 0.41% | |
| Holdings | 169 | 108 | |
| YTD Return | +4.26% | +19.68% | |
| 1Y Return | +7.82% | +26.75% | |
| 3Y Return (annualized) | +10.45% | +26.25% | |
| 5Y Return (annualized) | +1.63% | +15.39% | |
| Volatility (annualized) | 19.2% | 30.6% | |
| Max Drawdown | -74.3% | -83.0% | |
| Fund Family | John Hancock Investment Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 29, 2002 | Mar 10, 1999 |
HPF vs QQQ Performance
John Hancock Preferred Income Fund II (HPF) is a ETF from John Hancock Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HPF returned +7.82% while QQQ returned +26.75%. Year to date, HPF is up 4.26% versus a gain of 19.68% for QQQ.
Over three years, HPF compounded at +10.45% per year against +26.25% for QQQ; over five years the annualized figures are +1.63% and +15.39% respectively. Across the full 24-year window we track, QQQ has the edge at +13.15% annualized vs +0.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 19.2% for HPF. 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 -83.0% for QQQ. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPF charges 1.82% per year while QQQ charges 0.18%. On a $10,000 position that is $182 vs $18 annually, a gap of $164 per year that compounds over a long holding period. On income, HPF currently yields 9.77% against 0.41% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, HPF or QQQ?
HPF has an expense ratio of 1.82% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $164 per year of difference.
Which performed better, HPF or QQQ?
Over the past year HPF returned +7.82% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), HPF annualized +0.10% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, HPF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.2% for HPF. Worst drawdown: HPF -74.3% vs QQQ -83.0%.
Should I hold both HPF and QQQ?
HPF and QQQ have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPF and QQQ?
HPF and QQQ share 2 common holdings with a 0.3% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, HPF or QQQ?
HPF yields 9.77% while QQQ yields 0.41%, so HPF currently pays the higher dividend yield.
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