HPF vs VTI
John Hancock Preferred Income Fund II vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | HPF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.82% | 0.03% | |
| AUM | $355M | $663.5B | |
| Dividend Yield | 9.77% | 1.07% | |
| Holdings | 169 | 3,543 | |
| YTD Return | +4.26% | +14.96% | |
| 1Y Return | +7.82% | +22.39% | |
| 3Y Return (annualized) | +10.45% | +21.51% | |
| 5Y Return (annualized) | +1.63% | +12.36% | |
| Volatility (annualized) | 19.2% | 15.4% | |
| Max Drawdown | -74.3% | -56.6% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 29, 2002 | May 24, 2001 |
HPF vs VTI Performance
John Hancock Preferred Income Fund II (HPF) is a ETF from John Hancock Investment Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HPF returned +7.82% while VTI returned +22.39%. Year to date, HPF is up 4.26% versus a gain of 14.96% for VTI.
Over three years, HPF compounded at +10.45% per year against +21.51% for VTI; over five years the annualized figures are +1.63% and +12.36% respectively. Across the full 24-year window we track, VTI has the edge at +8.16% 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 15.4% 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 -74.3% for HPF 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPF charges 1.82% per year while VTI 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 1.07% for VTI.
Holdings Overlap
HPF and VTI share 31 holdings out of 2803 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 VTI?
HPF has an expense ratio of 1.82% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $179 per year of difference.
Which performed better, HPF or VTI?
Over the past year HPF returned +7.82% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (24 years), HPF annualized +0.10% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, HPF or VTI?
HPF has been the more volatile fund at 19.2% annualized versus 15.4% for VTI. Worst drawdown: HPF -74.3% vs VTI -56.6%.
Should I hold both HPF and VTI?
HPF and VTI 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 VTI?
HPF and VTI share 31 common holdings with a 1.9% weight overlap. Combined, they hold 2803 unique securities.
Which pays a higher dividend, HPF or VTI?
HPF yields 9.77% while VTI yields 1.07%, so HPF currently pays the higher dividend yield.
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