HEQ vs SPY
John Hancock Hedged Equity & Income Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, HEQ or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 48.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HEQ | SPY |
|---|---|---|
| Expense Ratio | 1.16% | 0.09%Best |
| AUM | $148M | $823.2B |
| Dividend Yield | 8.10% | 0.99% |
| Holdings | 659 | 1,515 |
| YTD Return | +10.91% | +13.53%Best |
| 1Y Return | +15.19% | +17.47%Best |
| 3Y Return (annualized) | +15.69% | +22.36%Best |
| 5Y Return (annualized) | +6.94% | +13.21%Best |
| Volatility (annualized) | 15.3% | 14.3%Best |
| Max Drawdown | -59.7% | -34.1%Best |
| $10,000 over 5 years | $13,986 | $18,596Best |
| Top 10 Weight | 48.2% | 38.2%Best |
| Fund Family | John Hancock Investment Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | May 26, 2011 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: May 26, 2011 to Oct 14, 2026 (15.4 years).
HEQ vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
HEQ vs SPY Performance
John Hancock Hedged Equity & Income Fund (HEQ) is an ETF from John Hancock Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year HEQ returned +15.19% while SPY returned +17.47%. Year to date, HEQ is up 10.91% versus a gain of 13.53% for SPY.
Over three years, HEQ compounded at +15.69% per year against +22.36% for SPY; over five years the annualized figures are +6.94% and +13.21% respectively. Across the full 15-year window we track, SPY has the edge at +12.65% annualized vs -0.28%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEQ has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.3% 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 -59.7% for HEQ and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEQ charges 1.16% per year while SPY charges 0.09%. On a $10,000 position that is $116 vs $9 annually, a gap of $107 per year that compounds over a long holding period. On income, HEQ currently yields 8.10% against 0.99% for SPY.
Holdings Overlap
78.0% of HEQ's money is in holdings SPY also owns. 34.9% of SPY's money is in holdings HEQ also owns.
Most of HEQ is already inside SPY. Owning both mostly buys the same companies twice.
31 positions in common, counted across the 54 positions we hold weights for in HEQ and 504 in SPY, against full books of 659 and 1,515.
What only one of them owns
Our book lists 465 positions for SPY that do not appear in our book for HEQ (64.2% of the fund), and 11 for HEQ that do not appear in SPY (11.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in HEQ | Weight in SPY | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 8.61% | 5.71% | 2.90% |
| NVDANvidia Corp | 5.10% | 7.78% | 2.68% |
| AMZNAmazon.Com Inc | 6.28% | 3.78% | 2.50% |
| GOOGLAlphabet Inc | 6.84% | 3.12% | 3.72% |
| AVGOBroadcom Inc | 4.36% | 2.48% | 1.88% |
| JPMJpmorgan Chase | 4.32% | 1.43% | 2.89% |
| AMDAdvanced Micro Devices Inc | 3.39% | 1.22% | 2.17% |
| BRK.BBerkshire Hathaway Inc Brk/B Us Equity | 2.94% | 1.44% | 1.50% |
| LLYEli Lilly & Co. | 2.96% | 1.37% | 1.59% |
| COSTCostco Wholesale Corp. | 3.36% | 0.62% | 2.74% |
78.0% of HEQ is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HEQ or SPY?
HEQ has an expense ratio of 1.16% while SPY charges 0.09%. SPY is the cheaper option, by $107 a year on a $10,000 investment.
Which performed better, HEQ or SPY?
Over the past year HEQ returned +15.19% vs +17.47% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized -0.28% vs +12.65% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HEQ or SPY?
HEQ has been the more volatile fund at 15.3% annualized versus 14.3% for SPY. Worst drawdown: HEQ -59.7% vs SPY -34.1%.
Should I hold both HEQ and SPY?
HEQ and SPY have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between HEQ and SPY?
78.0% of HEQ's money is in holdings SPY also owns. 34.9% of SPY's is in holdings HEQ also owns. They hold 31 positions in common, counted across the 54 positions we hold weights for in HEQ and 504 in SPY.
Which pays a higher dividend, HEQ or SPY?
HEQ yields 8.10% while SPY yields 0.99%, so HEQ currently pays the higher dividend yield.
Is SPY better than HEQ?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 48.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.