JHPI vs QQQ
John Hancock Preferred Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. JHPI offers more diversification with 207 holdings.
Side-by-Side Comparison
| Metric | JHPI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.18% | |
| AUM | $218M | $496.3B | |
| Dividend Yield | 5.92% | 0.44% | |
| Holdings | 207 | 108 | |
| YTD Return | +1.00% | +16.64% | |
| 1Y Return | +3.75% | +27.27% | |
| 3Y Return (annualized) | +8.85% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 8.3% | 30.6% | |
| Max Drawdown | -13.4% | -83.0% | |
| Fund Family | John Hancock Investment Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 14, 2021 | Mar 10, 1999 |
JHPI vs QQQ Performance
John Hancock Preferred Income ETF (JHPI) 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 JHPI returned +3.75% while QQQ returned +27.27%. Year to date, JHPI is up 1.00% versus a gain of 16.64% for QQQ.
Over three years, JHPI compounded at +8.85% per year against +25.96% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +3.51%. 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 8.3% for JHPI. 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 -13.4% for JHPI 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
JHPI charges 0.54% per year while QQQ charges 0.18%. On a $10,000 position that is $54 vs $18 annually, a gap of $36 per year that compounds over a long holding period. On income, JHPI currently yields 5.92% against 0.44% for QQQ.
Holdings Overlap
JHPI and QQQ share 4 holdings out of 265 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, JHPI or QQQ?
JHPI has an expense ratio of 0.54% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, JHPI or QQQ?
Over the past year JHPI returned +3.75% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), JHPI annualized +3.51% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, JHPI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.3% for JHPI. Worst drawdown: JHPI -13.4% vs QQQ -83.0%.
Should I hold both JHPI and QQQ?
JHPI and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JHPI and QQQ?
JHPI and QQQ share 4 common holdings with a 0.9% weight overlap. Combined, they hold 265 unique securities.
Which pays a higher dividend, JHPI or QQQ?
JHPI yields 5.92% while QQQ yields 0.44%, so JHPI currently pays the higher dividend yield.
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