PDT vs SPY
John Hancock Premium Dividend 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 | PDT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.41% | 0.09% | |
| AUM | $690M | $821.1B | |
| Dividend Yield | 6.95% | 1.01% | |
| Holdings | 144 | 505 | |
| YTD Return | +4.64% | +12.22% | |
| 1Y Return | +2.56% | +20.83% | |
| 3Y Return (annualized) | +16.94% | +21.70% | |
| 5Y Return (annualized) | +2.63% | +12.98% | |
| Volatility (annualized) | 16.7% | 15.3% | |
| Max Drawdown | -62.6% | -56.5% | |
| Fund Family | John Hancock Investment Management | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 21, 1989 | Jan 22, 1993 |
PDT vs SPY Performance
John Hancock Premium Dividend Fund (PDT) 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 PDT returned +2.56% while SPY returned +20.83%. Year to date, PDT is up 4.64% versus a gain of 12.22% for SPY.
Over three years, PDT compounded at +16.94% per year against +21.70% for SPY; over five years the annualized figures are +2.63% and +12.98% respectively. Across the full 31-year window we track, SPY has the edge at +8.79% annualized vs +1.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDT has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -62.6% for PDT 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDT charges 2.41% per year while SPY charges 0.09%. On a $10,000 position that is $241 vs $9 annually, a gap of $232 per year that compounds over a long holding period. On income, PDT currently yields 6.95% against 1.01% for SPY.
Holdings Overlap
PDT and SPY share 37 holdings out of 566 unique holdings combined, representing a 4.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PDT or SPY?
PDT has an expense ratio of 2.41% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $232 per year of difference.
Which performed better, PDT or SPY?
Over the past year PDT returned +2.56% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), PDT annualized +1.91% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, PDT or SPY?
PDT has been the more volatile fund at 16.7% annualized versus 15.3% for SPY. Worst drawdown: PDT -62.6% vs SPY -56.5%.
Should I hold both PDT and SPY?
PDT and SPY have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDT and SPY?
PDT and SPY share 37 common holdings with a 4.6% weight overlap. Combined, they hold 566 unique securities.
Which pays a higher dividend, PDT or SPY?
PDT yields 6.95% while SPY yields 1.01%, so PDT currently pays the higher dividend yield.
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