HPF vs VYM
John Hancock Preferred Income Fund II vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | HPF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.82% | 0.04% | |
| AUM | $355M | $79.0B | |
| Dividend Yield | 9.77% | 2.86% | |
| Holdings | 169 | 568 | |
| YTD Return | +4.19% | +16.10% | |
| 1Y Return | +8.29% | +25.99% | |
| 3Y Return (annualized) | +10.04% | +18.29% | |
| 5Y Return (annualized) | +1.79% | +12.35% | |
| Volatility (annualized) | 19.2% | 14.6% | |
| Max Drawdown | -74.3% | -58.8% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 29, 2002 | Nov 10, 2006 |
HPF vs VYM Performance
John Hancock Preferred Income Fund II (HPF) is a ETF from John Hancock Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HPF returned +8.29% while VYM returned +25.99%. Year to date, HPF is up 4.19% versus a gain of 16.10% for VYM.
Over three years, HPF compounded at +10.04% per year against +18.29% for VYM; over five years the annualized figures are +1.79% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPF charges 1.82% per year while VYM charges 0.04%. On a $10,000 position that is $182 vs $4 annually, a gap of $178 per year that compounds over a long holding period. On income, HPF currently yields 9.77% against 2.86% for VYM.
Holdings Overlap
HPF and VYM share 27 holdings out of 582 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HPF or VYM?
HPF has an expense ratio of 1.82% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $178 per year of difference.
Which performed better, HPF or VYM?
Over the past year HPF returned +8.29% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), HPF annualized +0.10% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, HPF or VYM?
HPF has been the more volatile fund at 19.2% annualized versus 14.6% for VYM. Worst drawdown: HPF -74.3% vs VYM -58.8%.
Should I hold both HPF and VYM?
HPF and VYM have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPF and VYM?
HPF and VYM share 27 common holdings with a 5.3% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, HPF or VYM?
HPF yields 9.77% while VYM yields 2.86%, so HPF currently pays the higher dividend yield.
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