HPF vs SPY
John Hancock Preferred Income Fund II vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | HPF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.82% | 0.09% | |
| AUM | $355M | $789.1B | |
| Dividend Yield | 9.77% | 1.01% | |
| Holdings | 169 | 505 | |
| YTD Return | +4.32% | +13.39% | |
| 1Y Return | +8.42% | +22.52% | |
| 3Y Return (annualized) | +10.49% | +21.36% | |
| 5Y Return (annualized) | +1.77% | +13.19% | |
| Volatility (annualized) | 19.2% | 15.3% | |
| Max Drawdown | -74.3% | -56.5% | |
| Fund Family | John Hancock Investment Management | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 29, 2002 | Jan 22, 1993 |
HPF vs SPY Performance
John Hancock Preferred Income Fund II (HPF) is a ETF from John Hancock Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HPF returned +8.42% while SPY returned +22.52%. Year to date, HPF is up 4.32% versus a gain of 13.39% for SPY.
Over three years, HPF compounded at +10.49% per year against +21.36% for SPY; over five years the annualized figures are +1.77% and +13.19% respectively. Across the full 24-year window we track, SPY has the edge at +8.84% annualized vs +0.11%. 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 15.3% for SPY. 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 SPY. 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 SPY charges 0.09%. On a $10,000 position that is $182 vs $9 annually, a gap of $173 per year that compounds over a long holding period. On income, HPF currently yields 9.77% against 1.01% for SPY.
Holdings Overlap
HPF and SPY share 16 holdings out of 538 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HPF or SPY?
HPF has an expense ratio of 1.82% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $173 per year of difference.
Which performed better, HPF or SPY?
Over the past year HPF returned +8.42% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (24 years), HPF annualized +0.11% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, HPF or SPY?
HPF has been the more volatile fund at 19.2% annualized versus 15.3% for SPY. Worst drawdown: HPF -74.3% vs SPY -56.5%.
Should I hold both HPF and SPY?
HPF and SPY 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 SPY?
HPF and SPY share 16 common holdings with a 1.9% weight overlap. Combined, they hold 538 unique securities.
Which pays a higher dividend, HPF or SPY?
HPF yields 9.77% while SPY yields 1.01%, so HPF currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.