HCMT vs QQQ
Direxion HCM Tactical Enhanced US ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HCMT offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | HCMT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.18% | |
| AUM | $625M | $496.3B | |
| Dividend Yield | 0.62% | 0.44% | |
| Holdings | 509 | 108 | |
| YTD Return | +6.72% | +16.64% | |
| 1Y Return | +22.41% | +27.27% | |
| 3Y Return (annualized) | +19.80% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 24.6% | 30.6% | |
| Max Drawdown | -36.3% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 22, 2023 | Mar 10, 1999 |
HCMT vs QQQ Performance
Direxion HCM Tactical Enhanced US ETF (HCMT) is a ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HCMT returned +22.41% while QQQ returned +27.27%. Year to date, HCMT is up 6.72% versus a gain of 16.64% for QQQ.
Over three years, HCMT compounded at +19.80% per year against +25.96% for QQQ. Across the full 3-year window we track, HCMT has the edge at +17.91% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 24.6% for HCMT. 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 -36.3% for HCMT and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HCMT charges 1.18% per year while QQQ charges 0.18%. On a $10,000 position that is $118 vs $18 annually, a gap of $100 per year that compounds over a long holding period. On income, HCMT currently yields 0.62% against 0.44% for QQQ.
Holdings Overlap
HCMT and QQQ share 84 holdings out of 523 unique holdings combined, representing a 40.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HCMT or QQQ?
HCMT has an expense ratio of 1.18% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $100 per year of difference.
Which performed better, HCMT or QQQ?
Over the past year HCMT returned +22.41% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), HCMT annualized +17.91% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HCMT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.6% for HCMT. Worst drawdown: HCMT -36.3% vs QQQ -83.0%.
Should I hold both HCMT and QQQ?
HCMT and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HCMT and QQQ?
HCMT and QQQ share 84 common holdings with a 40.5% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, HCMT or QQQ?
HCMT yields 0.62% while QQQ yields 0.44%, so HCMT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.