John Hancock Preferred Income ETF

John Hancock Preferred Income ETF (JHPI) is an actively managed fund from John Hancock, part of Manulife. It buys preferred stock and similar hybrid securities, mainly from utility, communication and financial companies, and pays income monthly. Its 0.54% expense ratio is below the 0.72% average of its closest peers. As of June 30, 2026, it held 214 securities, and no single position was above about 1.2% of the fund.

• Over the year to Oct 27, 2026, JHPI returned -1.4%, 2nd of 4 among similar funds.
• Its worst full calendar year was 2022 (-9.6%); its best was 2024 (+10.5%).
• The deepest fall in its price history was 13.5% (Jan 3, 2022 to Mar 20, 2023), recovered by Mar 8, 2024.

As of Jun 30, 2026, the fund held 214 securities; the ten largest made up 10% of assets, and 2.16% sat in cash and money-market holdings.

The bonds mature in 20.6 years on average (weighted by size), with an average coupon of 7%.

• Over the three months to Jun 30, 2026, investors added a net $44.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.46%, +0.04%, -0.19%.

JHPI does not track an index. A manager picks the holdings. Under normal conditions, at least 80% of net assets go into preferred securities. These pay fixed or adjustable distributions and rank ahead of common stock but behind all of a company's debt. They include trust preferred securities, corporate hybrids and contingent convertibles (CoCos), which can convert to stock or be written down if the issuer runs into trouble. The manager decides which sectors and industries to favor and looks for securities that seem undervalued compared with similar ones. Environmental, social and governance (ESG) factors are weighed alongside other factors.

The prospectus sets some limits. At least 50% of net assets must be investment grade, meaning rated BBB– or Baa3 or higher. Up to 50% can be lower rated, but nothing below B. The fund concentrates in utilities and communication, and also in financials. Up to 20% can go into foreign issuers' dollar-denominated securities. As of June 30, 2026, 56% was in bonds and notes, many of them junior subordinated, variable-rate hybrids, and 41% was in preferred stock. Turnover was 22%.

The fund may use derivatives, but it held none as of June 30, 2026. It sometimes handles creations and redemptions in cash, which can make it less tax-efficient than ETFs that swap securities instead.

• JHPI charges 0.54% a year, versus an average of 0.72% for the similar funds below (2nd of 4, cheapest first).
• Of that, 0.49% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.12% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $55 in the first year and $811 over 10 years (assuming a 5% annual return).

JHPI's main purpose is high monthly income from preferred and hybrid securities, not growth.

JHPI could add a monthly income stream. Its trailing 12-month yield was 6.12% as of October 27, 2026, or $1.33 per share. The prospectus warns that payouts can fall if income from holdings declines. In the SEC's standard example, costs on $10,000 come to $55 in year one and $811 over 10 years. The fund launched in December 2021, so it has no record from the 2008 or 2020 crashes. It fell 10.9% in the 2022 bear market. Its worst calendar year was 2022, at −9.99%. Its deepest drop, 13.5%, ran from January 2022 to March 2023, and the fund did not fully recover until March 8, 2024. Preferreds often fall when interest rates rise, so selling shares for cash during that stretch would have meant selling at a loss. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).