HCMT vs SPY

HCMT vs SPY

Which is better, HCMT or SPY?

SPY has been ahead.

SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window.

Lower Fees: SPYHigher Returns: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricHCMTSPY
Expense Ratio1.18%0.09%Best
AUM$588M$804.7B
Dividend Yield0.58%0.98%
Holdings509505
YTD Return+7.24%+12.47%Best
1Y Return+15.20%+17.51%Best
3Y Return (annualized)+18.73%+21.18%Best
5Y Return (annualized)-+12.88%
Volatility (annualized)24.4%12.6%Best
Max Drawdown-36.3%-18.8%Best
$10,000 over 3.2 years$16,864$18,099Best
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionJun 22, 2023Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 3.2 years row, are measured over the window both funds cover: Jun 22, 2023 to Sep 11, 2026 (3.2 years).

HCMT vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.2 years both funds cover.

HCMT vs SPY Performance

Direxion HCM Tactical Enhanced US ETF (HCMT) is an ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year HCMT returned +15.20% while SPY returned +17.51%. Year to date, HCMT is up 7.24% versus a gain of 12.47% for SPY.

Over three years, HCMT compounded at +18.73% per year against +21.18% for SPY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HCMT has been the more volatile fund, with annualized monthly volatility of 24.4% compared with 12.6% for SPY. 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 -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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 SPY charges 0.09%. On a $10,000 position that is $118 vs $9 annually, a gap of $109 per year that compounds over a long holding period. On income, HCMT currently yields 0.58% against 0.98% for SPY.

Holdings Overlap

SPY already in HCMT94.8%

At least 94.8% of SPY's money is in holdings HCMT also owns.

Stated as a floor: for HCMT, our book for it covers 88.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

Most of SPY is already inside HCMT. Owning both mostly buys the same companies twice.

479 positions in common, counted across the 505 positions we hold weights for in HCMT and 504 in SPY, against full books of 509 and 505.

Top Shared Holdings

StockWeight in HCMTWeight in SPYDifference
NVDANvidia Corp.6.18%7.71%1.53%
AAPLApple, Inc5.47%6.83%1.36%
MSFTMicrosoft Corp 4.100 Feb 06 374.41%5.50%1.09%
AMZNAmazon.Com Inc3.27%4.08%0.81%
GOOGLAlphabet A Usd 0.0012.67%3.33%0.66%
AVGOBroadcom Inc2.38%2.97%0.59%
GOOGAlphabet Inc2.13%2.67%0.54%
MUMicron Technology, Inc.1.21%1.51%0.30%
JPMJpmorgan Chase & Co.1.15%1.44%0.29%
TSLATesla Inc1.11%1.38%0.27%

94.8% of SPY is already inside HCMT.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

HCMTSPY

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Frequently Asked Questions

Which is cheaper, HCMT or SPY?

HCMT has an expense ratio of 1.18% while SPY charges 0.09%. SPY is the cheaper option, by $109 a year on a $10,000 investment.

Which performed better, HCMT or SPY?

Over the past year HCMT returned +15.20% vs +17.51% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, HCMT or SPY?

HCMT has been the more volatile fund at 24.4% annualized versus 12.6% for SPY. Worst drawdown: HCMT -36.3% vs SPY -18.8%.

Should I hold both HCMT and SPY?

HCMT and SPY have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between HCMT and SPY?

At least 94.8% of SPY's money is in holdings HCMT also owns. Our book for HCMT is partial, so the real figure is this or higher. They hold 479 positions in common, counted across the 505 positions we hold weights for in HCMT and 504 in SPY.

Which pays a higher dividend, HCMT or SPY?

HCMT yields 0.58% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than HCMT?

SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.