HPF vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricHPFVXUSWinner
Expense Ratio1.82%0.05%
AUM$355M$156.5B
Dividend Yield9.77%2.60%
Holdings1698,747
YTD Return+4.13%+14.57%
1Y Return+8.11%+27.82%
3Y Return (annualized)+10.03%+19.27%
5Y Return (annualized)+1.75%+9.28%
Volatility (annualized)19.2%15.1%
Max Drawdown-74.3%-39.9%
Fund FamilyJohn Hancock Investment ManagementVanguard (US)
CategoryAllocation/BalancedEquity
InceptionNov 29, 2002Jan 26, 2011

HPF vs VXUS Performance

John Hancock Preferred Income Fund II (HPF) is a ETF from John Hancock Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year HPF returned +8.11% while VXUS returned +27.82%. Year to date, HPF is up 4.13% versus a gain of 14.57% for VXUS.

Over three years, HPF compounded at +10.03% per year against +19.27% for VXUS; over five years the annualized figures are +1.75% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% 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 VXUS. 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 -39.9% for VXUS. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HPF charges 1.82% per year while VXUS charges 0.05%. On a $10,000 position that is $182 vs $5 annually, a gap of $177 per year that compounds over a long holding period. On income, HPF currently yields 9.77% against 2.60% for VXUS.

Holdings Overlap

0.1%overlap

HPF and VXUS share 1 holdings out of 7911 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HPFWeight in VXUSDifference
HBAN0.93%0.05%0.88%

Frequently Asked Questions

Which is cheaper, HPF or VXUS?

HPF has an expense ratio of 1.82% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $177 per year of difference.

Which performed better, HPF or VXUS?

Over the past year HPF returned +8.11% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), HPF annualized +0.10% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, HPF or VXUS?

HPF has been the more volatile fund at 19.2% annualized versus 15.1% for VXUS. Worst drawdown: HPF -74.3% vs VXUS -39.9%.

Should I hold both HPF and VXUS?

HPF and VXUS have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HPF and VXUS?

HPF and VXUS share 1 common holdings with a 0.1% weight overlap. Combined, they hold 7911 unique securities.

Which pays a higher dividend, HPF or VXUS?

HPF yields 9.77% while VXUS yields 2.60%, so HPF currently pays the higher dividend yield.

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