HPI vs QQQ
John Hancock Preferred Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HPI offers more diversification with 175 holdings.
Side-by-Side Comparison
| Metric | HPI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.18% | |
| AUM | $443M | $496.3B | |
| Dividend Yield | 9.80% | 0.44% | |
| Holdings | 175 | 108 | |
| YTD Return | +2.86% | +16.64% | |
| 1Y Return | +8.84% | +27.27% | |
| 3Y Return (annualized) | +11.03% | +25.96% | |
| 5Y Return (annualized) | +2.76% | +14.54% | |
| Volatility (annualized) | 19.6% | 30.6% | |
| Max Drawdown | -75.0% | -83.0% | |
| Fund Family | John Hancock Investment Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 27, 2002 | Mar 10, 1999 |
HPI vs QQQ Performance
John Hancock Preferred Income Fund (HPI) is a ETF from John Hancock Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HPI returned +8.84% while QQQ returned +27.27%. Year to date, HPI is up 2.86% versus a gain of 16.64% for QQQ.
Over three years, HPI compounded at +11.03% per year against +25.96% for QQQ; over five years the annualized figures are +2.76% and +14.54% respectively. Across the full 24-year window we track, QQQ has the edge at +13.03% annualized vs +0.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 19.6% for HPI. 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 -83.0% for QQQ. 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPI charges 2.31% per year while QQQ charges 0.18%. On a $10,000 position that is $231 vs $18 annually, a gap of $213 per year that compounds over a long holding period. On income, HPI currently yields 9.80% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, HPI or QQQ?
HPI has an expense ratio of 2.31% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $213 per year of difference.
Which performed better, HPI or QQQ?
Over the past year HPI returned +8.84% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), HPI annualized +0.13% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HPI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.6% for HPI. Worst drawdown: HPI -75.0% vs QQQ -83.0%.
Should I hold both HPI and QQQ?
HPI and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPI and QQQ?
HPI and QQQ share 2 common holdings with a 0.3% weight overlap. Combined, they hold 194 unique securities.
Which pays a higher dividend, HPI or QQQ?
HPI yields 9.80% while QQQ yields 0.44%, so HPI 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.