HTD vs QQQ
John Hancock Tax-Advantaged Dividend Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HTD offers more diversification with 124 holdings.
Side-by-Side Comparison
| Metric | HTD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.96% | 0.18% | |
| AUM | $917M | $496.3B | |
| Dividend Yield | 7.17% | 0.44% | |
| Holdings | 124 | 108 | |
| YTD Return | +12.61% | +19.52% | |
| 1Y Return | +12.47% | +26.68% | |
| 3Y Return (annualized) | +17.94% | +26.64% | |
| 5Y Return (annualized) | +8.21% | +15.36% | |
| Volatility (annualized) | 19.3% | 30.6% | |
| Max Drawdown | -75.5% | -83.0% | |
| Fund Family | John Hancock Investment Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 27, 2004 | Mar 10, 1999 |
HTD vs QQQ Performance
John Hancock Tax-Advantaged Dividend Income Fund (HTD) 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 HTD returned +12.47% while QQQ returned +26.68%. Year to date, HTD is up 12.61% versus a gain of 19.52% for QQQ.
Over three years, HTD compounded at +17.94% per year against +26.64% for QQQ; over five years the annualized figures are +8.21% and +15.36% respectively. Across the full 22-year window we track, QQQ has the edge at +13.14% annualized vs +3.01%. 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 19.3% for HTD. 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 -75.5% for HTD 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HTD charges 1.96% per year while QQQ charges 0.18%. On a $10,000 position that is $196 vs $18 annually, a gap of $178 per year that compounds over a long holding period. On income, HTD currently yields 7.17% against 0.44% for QQQ.
Holdings Overlap
HTD and QQQ share 4 holdings out of 171 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HTD or QQQ?
HTD has an expense ratio of 1.96% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $178 per year of difference.
Which performed better, HTD or QQQ?
Over the past year HTD returned +12.47% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (22 years), HTD annualized +3.01% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, HTD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.3% for HTD. Worst drawdown: HTD -75.5% vs QQQ -83.0%.
Should I hold both HTD and QQQ?
HTD and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HTD and QQQ?
HTD and QQQ share 4 common holdings with a 0.9% weight overlap. Combined, they hold 171 unique securities.
Which pays a higher dividend, HTD or QQQ?
HTD yields 7.17% while QQQ yields 0.44%, so HTD currently pays the higher dividend yield.
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