HEQ vs VYM
John Hancock Hedged Equity & Income Fund vs Vanguard High Dividend Yield ETF
Which is better, HEQ or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% 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 | VYM |
|---|---|---|
| Expense Ratio | 1.16% | 0.04%Best |
| AUM | $148M | $78.9B |
| Dividend Yield | 8.10% | 2.37% |
| Holdings | 659 | 608 |
| YTD Return | +10.91% | +11.83%Best |
| 1Y Return | +15.19% | +15.96%Best |
| 3Y Return (annualized) | +15.69% | +18.60%Best |
| 5Y Return (annualized) | +6.94% | +11.51%Best |
| Volatility (annualized) | 15.3% | 13.1%Best |
| Max Drawdown | -59.7% | -35.7%Best |
| $10,000 over 5 years | $13,986 | $17,241Best |
| Top 10 Weight | 48.2% | 25.8%Best |
| Fund Family | John Hancock Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | May 26, 2011 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: May 26, 2011 to Oct 14, 2026 (15.4 years).
HEQ vs VYM 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 covers the 15.4 years both funds cover.
HEQ vs VYM Performance
John Hancock Hedged Equity & Income Fund (HEQ) is an ETF from John Hancock Investment Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year HEQ returned +15.19% while VYM returned +15.96%. Year to date, HEQ is up 10.91% versus a gain of 11.83% for VYM.
Over three years, HEQ compounded at +15.69% per year against +18.60% for VYM; over five years the annualized figures are +6.94% and +11.51% respectively. Across the full 15-year window we track, VYM has the edge at +9.67% 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 13.1% for VYM. 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEQ charges 1.16% per year while VYM charges 0.04%. On a $10,000 position that is $116 vs $4 annually, a gap of $112 per year that compounds over a long holding period. On income, HEQ currently yields 8.10% against 2.37% for VYM.
Holdings Overlap
20.9% of HEQ's money is in holdings VYM also owns. 14.5% of VYM's money is in holdings HEQ also owns.
HEQ and VYM share little of their money.
13 positions in common, counted across the 54 positions we hold weights for in HEQ and 602 in VYM, against full books of 659 and 608.
What only one of them owns
Our book lists 560 positions for VYM that do not appear in our book for HEQ (83.3% of the fund), and 30 for HEQ that do not appear in VYM (68.9%).
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 VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 4.36% | 6.94% | 2.58% |
| JPMJpmorgan Chase | 4.32% | 3.83% | 0.49% |
| VLOValero Energy | 2.04% | 0.43% | 1.61% |
| LINLinde Plc Ordinary Shares | 1.39% | 0.91% | 0.48% |
| COPConocophillips Common Stock USD 0.01 | 1.45% | 0.65% | 0.80% |
| EQTEQT Corp. | 1.84% | 0.13% | 1.71% |
| NEMNewmont Corp Common | 0.98% | 0.54% | 0.44% |
| CICigna Corp. | 1.01% | 0.29% | 0.72% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.94% | 0.35% | 0.59% |
| CMICummins Inc. | 0.86% | 0.31% | 0.55% |
20.9% of HEQ is already inside VYM.
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 VYM?
HEQ has an expense ratio of 1.16% while VYM charges 0.04%. VYM is the cheaper option, by $112 a year on a $10,000 investment.
Which performed better, HEQ or VYM?
Over the past year HEQ returned +15.19% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized -0.28% vs +9.67% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HEQ or VYM?
HEQ has been the more volatile fund at 15.3% annualized versus 13.1% for VYM. Worst drawdown: HEQ -59.7% vs VYM -35.7%.
Should I hold both HEQ and VYM?
HEQ and VYM have a monthly-return correlation of 0.76, 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 VYM?
20.9% of HEQ's money is in holdings VYM also owns. 14.5% of VYM's is in holdings HEQ also owns. They hold 13 positions in common, counted across the 54 positions we hold weights for in HEQ and 602 in VYM.
Which pays a higher dividend, HEQ or VYM?
HEQ yields 8.10% while VYM yields 2.37%, so HEQ currently pays the higher dividend yield.
Is VYM better than HEQ?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% 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.