What this ETF is trying to do

The John Hancock Preferred Income ETF (JHPI) is designed to provide investors with income. It focuses on preferred securities, which are a type of investment that sits between a stock and a bond.

What the numbers show

As of October 9, 2026, the share price of JHPI was $21.75.

When looking at performance, it is important to distinguish between price return (how the share price changed) and total return (which includes the distributions paid out).

• Year-to-Date (YTD): The price return is -4.76%, while the total return is -1.02%.

• One Year: The price return is -6.61%, while the total return is -0.96%.

• Three Year: The price return is 7.65%, while the total return is 28.86%.

To put the one-year price change in perspective, an estimated price from roughly one year ago was $23.29. If an investor had put $10,000 into the ETF based on that estimated price, the value of those shares alone would have decreased to approximately $9,338.80 over the year, not counting any distributions received.

Income and distribution explanation

JHPI usually pays distributions monthly. Over the last 12 months, it made 12 payouts totaling $1.34 per share. This results in a distribution yield of approximately 6.16%.

It is important for beginners to remember that a high distribution yield alone can be misleading. A yield tells you how much cash is being paid out relative to the price, but it does not guarantee that the investment is growing or that your original principal is safe.

NAV erosion explanation

"NAV erosion" happens when the underlying value of an ETF's assets declines over time. StockValueFinder uses an erosion-risk score to measure this. JHPI has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk rather than a guarantee that the fund's value has collapsed.

Pros

• Consistent Payouts: The fund has a history of monthly distributions.

• Long-term Total Return: The three-year total return is positive at 28.86%.

Cons

• Recent Price Decline: Both the YTD and one-year price returns are negative.

• Erosion Risk: The fund has a "mild" erosion-risk label.

Beginner takeaway

JHPI provides regular cash income, but the share price has fallen over the last year. While the total return is higher than the price return because of the distributions, the "mild" erosion-risk score suggests that investors should keep an eye on the stability of the share price.