ETF Report: John Hancock Preferred Income ETF (JHPI)

What this ETF is trying to do

The John Hancock Preferred Income ETF, known by its ticker symbol JHPI, is an exchange-traded fund. This type of investment is designed to provide income to investors. It focuses on "preferred" assets, which are a specific kind of investment that often pays regular money to those who own them.

What the numbers show

As of July 10, 2026, the current price of one share is $22.73. When we look at how the price has changed over time, we see different results. The price has gone down slightly over the last year by about 0.15%. However, if you look at the "total return," which includes the extra money paid out to investors, the one-year total return is actually up by 5.60%.

To understand how price changes affect your money, let’s use an example. Imagine you invested $10,000 into this ETF exactly one year ago when the estimated price was about $22.76 per share. If you only looked at the share price, your $10,000 would now be worth slightly less than what you started with because the price dropped a tiny bit.

Income and distribution explanation

This ETF is designed to pay out money regularly. Over the last 12 months, it made 12 separate payments. These payments usually happen once every month. The "distribution yield" is 5.6595%, which tells you how much income the fund paid out compared to its price.

It is important to remember that a high yield alone can be misleading. A high percentage might look great, but it doesn't tell you if the actual value of your investment is staying healthy or shrinking.

NAV erosion explanation

"NAV erosion" is a term used when the value of the fund's underlying assets keeps dropping over time. Think of it like a bucket with a small hole in the bottom; even if you keep pouring water (income) in, the level of the water (the share price) keeps getting lower. If an ETF has severe erosion, the share price can fall from a high price to a much lower price, which destroys your "principal." Your principal is the original money you put in.

For this specific ETF, the data shows "No price erosion detected." This means the fund's value is not showing signs of that "leaky bucket" problem.

Pros

• The fund provides regular monthly income.

• While the share price has been mostly flat, the total return (price plus income) has been positive over the last year.

• Over a three-year period, the total return was 29.95%.

Cons

• The actual price of the shares has seen some small decreases over the last year.

Beginner takeaway

Income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. They generally try to avoid ETFs that collapse in price, because a falling price can cancel out the benefits of the income you receive. In this case, JHPI has shown a total return that is positive even when the share price stays relatively steady.