HCMT vs SPY
Direxion HCM Tactical Enhanced US ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. HCMT delivered stronger 1-year returns. HCMT offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | HCMT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.09% | |
| AUM | $625M | $821.1B | |
| Dividend Yield | 0.62% | 1.01% | |
| Holdings | 509 | 505 | |
| YTD Return | +6.72% | +12.68% | |
| 1Y Return | +22.41% | +21.82% | |
| 3Y Return (annualized) | +19.80% | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 24.6% | 15.3% | |
| Max Drawdown | -36.3% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 22, 2023 | Jan 22, 1993 |
HCMT vs SPY Performance
Direxion HCM Tactical Enhanced US ETF (HCMT) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HCMT returned +22.41% while SPY returned +21.82%. Year to date, HCMT is up 6.72% versus a gain of 12.68% for SPY.
Over three years, HCMT compounded at +19.80% per year against +21.98% for SPY. Across the full 3-year window we track, HCMT has the edge at +17.91% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HCMT has been the more volatile fund, with annualized monthly volatility of 24.6% compared with 15.3% 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 -56.5% for SPY. 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 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 0.62% against 1.01% for SPY.
Holdings Overlap
HCMT and SPY share 453 holdings out of 556 unique holdings combined, representing a 72.3% weight overlap.
High overlap means holding both may not provide much additional diversification.
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. On a $10,000 investment, that is $109 per year of difference.
Which performed better, HCMT or SPY?
Over the past year HCMT returned +22.41% vs +21.82% for SPY, so HCMT leads on 1-year performance. Over the longest common window we track (3 years), HCMT annualized +17.91% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, HCMT or SPY?
HCMT has been the more volatile fund at 24.6% annualized versus 15.3% for SPY. Worst drawdown: HCMT -36.3% vs SPY -56.5%.
Should I hold both HCMT and SPY?
HCMT and SPY 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 SPY?
HCMT and SPY share 453 common holdings with a 72.3% weight overlap. Combined, they hold 556 unique securities.
Which pays a higher dividend, HCMT or SPY?
HCMT yields 0.62% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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