HCMT vs SCHD
Direxion HCM Tactical Enhanced US ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HCMT offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | HCMT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.06% | |
| AUM | $625M | $108.7B | |
| Dividend Yield | 0.62% | 3.13% | |
| Holdings | 509 | 104 | |
| YTD Return | +7.53% | +28.63% | |
| 1Y Return | +20.96% | +32.53% | |
| 3Y Return (annualized) | +19.94% | +16.97% | |
| 5Y Return (annualized) | - | +10.47% | |
| Volatility (annualized) | 24.7% | 13.7% | |
| Max Drawdown | -36.3% | -33.4% | |
| Fund Family | Direxion Shares ETF Trust | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 22, 2023 | Oct 20, 2011 |
HCMT vs SCHD Performance
Direxion HCM Tactical Enhanced US ETF (HCMT) is a ETF from Direxion Shares ETF Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HCMT returned +20.96% while SCHD returned +32.53%. Year to date, HCMT is up 7.53% versus a gain of 28.63% for SCHD.
Over three years, HCMT compounded at +19.94% per year against +16.97% for SCHD. Across the full 3-year window we track, HCMT has the edge at +18.22% annualized vs +11.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HCMT has been the more volatile fund, with annualized monthly volatility of 24.7% compared with 13.7% for SCHD. 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 -33.4% for SCHD. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HCMT charges 1.18% per year while SCHD charges 0.06%. On a $10,000 position that is $118 vs $6 annually, a gap of $112 per year that compounds over a long holding period. On income, HCMT currently yields 0.62% against 3.13% for SCHD.
Holdings Overlap
HCMT and SCHD share 41 holdings out of 564 unique holdings combined, representing a 5.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HCMT or SCHD?
HCMT has an expense ratio of 1.18% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $112 per year of difference.
Which performed better, HCMT or SCHD?
Over the past year HCMT returned +20.96% vs +32.53% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), HCMT annualized +18.22% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, HCMT or SCHD?
HCMT has been the more volatile fund at 24.7% annualized versus 13.7% for SCHD. Worst drawdown: HCMT -36.3% vs SCHD -33.4%.
Should I hold both HCMT and SCHD?
HCMT and SCHD have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HCMT and SCHD?
HCMT and SCHD share 41 common holdings with a 5.9% weight overlap. Combined, they hold 564 unique securities.
Which pays a higher dividend, HCMT or SCHD?
HCMT yields 0.62% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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