HPI vs VTI
John Hancock Preferred Income Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | HPI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.03% | |
| AUM | $443M | $666.9B | |
| Dividend Yield | 9.80% | 1.07% | |
| Holdings | 175 | 3,543 | |
| YTD Return | +3.44% | +12.65% | |
| 1Y Return | +9.73% | +21.39% | |
| 3Y Return (annualized) | +10.87% | +21.54% | |
| 5Y Return (annualized) | +3.03% | +12.11% | |
| Volatility (annualized) | 19.6% | 15.3% | |
| Max Drawdown | -75.0% | -56.6% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 27, 2002 | May 24, 2001 |
HPI vs VTI Performance
John Hancock Preferred Income Fund (HPI) is a ETF from John Hancock Investment Management and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HPI returned +9.73% while VTI returned +21.39%. Year to date, HPI is up 3.44% versus a gain of 12.65% for VTI.
Over three years, HPI compounded at +10.87% per year against +21.54% for VTI; over five years the annualized figures are +3.03% and +12.11% respectively. Across the full 24-year window we track, VTI has the edge at +8.07% 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 VTI. 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 -56.6% for VTI. 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 VTI 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 1.07% for VTI.
Holdings Overlap
HPI and VTI share 43 holdings out of 2838 unique holdings combined, representing a 3.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HPI or VTI?
HPI has an expense ratio of 2.31% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $228 per year of difference.
Which performed better, HPI or VTI?
Over the past year HPI returned +9.73% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (24 years), HPI annualized +0.15% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, HPI or VTI?
HPI has been the more volatile fund at 19.6% annualized versus 15.3% for VTI. Worst drawdown: HPI -75.0% vs VTI -56.6%.
Should I hold both HPI and VTI?
HPI and VTI 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 VTI?
HPI and VTI share 43 common holdings with a 3.6% weight overlap. Combined, they hold 2838 unique securities.
Which pays a higher dividend, HPI or VTI?
HPI yields 9.80% while VTI yields 1.07%, so HPI currently pays the higher dividend yield.
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