HPI vs VOO
John Hancock Preferred Income Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | HPI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.03% | |
| AUM | $443M | $997.4B | |
| Dividend Yield | 9.80% | 1.08% | |
| Holdings | 175 | 509 | |
| YTD Return | +4.02% | +13.20% | |
| 1Y Return | +10.35% | +21.62% | |
| 3Y Return (annualized) | +11.09% | +22.16% | |
| 5Y Return (annualized) | +3.18% | +13.42% | |
| Volatility (annualized) | 19.6% | 14.1% | |
| Max Drawdown | -75.0% | -34.3% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 27, 2002 | Sep 7, 2010 |
HPI vs VOO Performance
John Hancock Preferred Income Fund (HPI) is a ETF from John Hancock Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HPI returned +10.35% while VOO returned +21.62%. Year to date, HPI is up 4.02% versus a gain of 13.20% for VOO.
Over three years, HPI compounded at +11.09% per year against +22.16% for VOO; over five years the annualized figures are +3.18% and +13.42% respectively. Across the full 16-year window we track, VOO has the edge at +13.51% annualized vs +0.18%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HPI charges 2.31% per year while VOO 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 1.08% for VOO.
Holdings Overlap
HPI and VOO 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 VOO?
HPI has an expense ratio of 2.31% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $228 per year of difference.
Which performed better, HPI or VOO?
Over the past year HPI returned +10.35% vs +21.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), HPI annualized +0.18% vs +13.51% for VOO. Past performance does not guarantee future results.
Which is riskier, HPI or VOO?
HPI has been the more volatile fund at 19.6% annualized versus 14.1% for VOO. Worst drawdown: HPI -75.0% vs VOO -34.3%.
Should I hold both HPI and VOO?
HPI and VOO have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HPI and VOO?
HPI and VOO share 24 common holdings with a 3.8% weight overlap. Combined, they hold 575 unique securities.
Which pays a higher dividend, HPI or VOO?
HPI yields 9.80% while VOO yields 1.08%, so HPI currently pays the higher dividend yield.
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