HPI vs SPY
John Hancock Preferred Income Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | HPI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.09% | |
| AUM | $443M | $821.1B | |
| Dividend Yield | 9.80% | 1.01% | |
| Holdings | 175 | 505 | |
| YTD Return | +3.44% | +12.22% | |
| 1Y Return | +9.73% | +20.83% | |
| 3Y Return (annualized) | +10.87% | +21.70% | |
| 5Y Return (annualized) | +3.03% | +12.98% | |
| Volatility (annualized) | 19.6% | 15.3% | |
| Max Drawdown | -75.0% | -56.5% | |
| Fund Family | John Hancock Investment Management | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 27, 2002 | Jan 22, 1993 |
HPI vs SPY Performance
John Hancock Preferred Income Fund (HPI) is a ETF from John Hancock Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HPI returned +9.73% while SPY returned +20.83%. Year to date, HPI is up 3.44% versus a gain of 12.22% for SPY.
Over three years, HPI compounded at +10.87% per year against +21.70% for SPY; over five years the annualized figures are +3.03% and +12.98% respectively. Across the full 24-year window we track, SPY has the edge at +8.79% 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 15.3% for SPY. 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 SPY. 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 SPY charges 0.09%. On a $10,000 position that is $231 vs $9 annually, a gap of $222 per year that compounds over a long holding period. On income, HPI currently yields 9.80% against 1.01% for SPY.
Holdings Overlap
HPI and SPY share 24 holdings out of 574 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 SPY?
HPI has an expense ratio of 2.31% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $222 per year of difference.
Which performed better, HPI or SPY?
Over the past year HPI returned +9.73% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (24 years), HPI annualized +0.15% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, HPI or SPY?
HPI has been the more volatile fund at 19.6% annualized versus 15.3% for SPY. Worst drawdown: HPI -75.0% vs SPY -56.5%.
Should I hold both HPI and SPY?
HPI and SPY 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 SPY?
HPI and SPY share 24 common holdings with a 3.8% weight overlap. Combined, they hold 574 unique securities.
Which pays a higher dividend, HPI or SPY?
HPI yields 9.80% while SPY yields 1.01%, so HPI currently pays the higher dividend yield.
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