HPI vs IVV
John Hancock Preferred Income Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | HPI | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.03% | |
| AUM | $443M | $907.0B | |
| Dividend Yield | 9.80% | 1.10% | |
| Holdings | 175 | 508 | |
| YTD Return | +3.44% | +12.28% | |
| 1Y Return | +9.73% | +20.94% | |
| 3Y Return (annualized) | +10.87% | +21.81% | |
| 5Y Return (annualized) | +3.03% | +13.05% | |
| Volatility (annualized) | 19.6% | 15.1% | |
| Max Drawdown | -75.0% | -56.5% | |
| Fund Family | John Hancock Investment Management | iShares by BlackRock (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 27, 2002 | May 15, 2000 |
HPI vs IVV Performance
John Hancock Preferred Income Fund (HPI) is a ETF from John Hancock Investment Management and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year HPI returned +9.73% while IVV returned +20.94%. Year to date, HPI is up 3.44% versus a gain of 12.28% for IVV.
Over three years, HPI compounded at +10.87% per year against +21.81% for IVV; over five years the annualized figures are +3.03% and +13.05% respectively. Across the full 24-year window we track, IVV has the edge at +6.98% annualized vs +0.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HPI has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 15.1% for IVV. 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 -75.0% for HPI and -56.5% for IVV. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPI charges 2.31% per year while IVV charges 0.03%. On a $10,000 position that is $231 vs $3 annually, a gap of $228 per year that compounds over a long holding period. On income, HPI currently yields 9.80% against 1.10% for IVV.
Holdings Overlap
HPI and IVV share 24 holdings out of 575 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HPI or IVV?
HPI has an expense ratio of 2.31% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $228 per year of difference.
Which performed better, HPI or IVV?
Over the past year HPI returned +9.73% vs +20.94% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (24 years), HPI annualized +0.15% vs +6.98% for IVV. Past performance does not guarantee future results.
Which is riskier, HPI or IVV?
HPI has been the more volatile fund at 19.6% annualized versus 15.1% for IVV. Worst drawdown: HPI -75.0% vs IVV -56.5%.
Should I hold both HPI and IVV?
HPI and IVV have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPI and IVV?
HPI and IVV share 24 common holdings with a 3.8% weight overlap. Combined, they hold 575 unique securities.
Which pays a higher dividend, HPI or IVV?
HPI yields 9.80% while IVV yields 1.10%, so HPI currently pays the higher dividend yield.
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