HCMT vs VOO
Direxion HCM Tactical Enhanced US ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns.
Side-by-Side Comparison
| Metric | HCMT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.03% | |
| AUM | $625M | $997.4B | |
| Dividend Yield | 0.62% | 1.08% | |
| Holdings | 509 | 509 | |
| YTD Return | +6.02% | +12.25% | |
| 1Y Return | +20.26% | +20.92% | |
| 3Y Return (annualized) | +19.36% | +21.79% | |
| 5Y Return (annualized) | - | +13.05% | |
| Volatility (annualized) | 24.6% | 14.1% | |
| Max Drawdown | -36.3% | -34.3% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 22, 2023 | Sep 7, 2010 |
HCMT vs VOO Performance
Direxion HCM Tactical Enhanced US ETF (HCMT) is a ETF from Direxion Shares ETF Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HCMT returned +20.26% while VOO returned +20.92%. Year to date, HCMT is up 6.02% versus a gain of 12.25% for VOO.
Over three years, HCMT compounded at +19.36% per year against +21.79% for VOO. Across the full 3-year window we track, HCMT has the edge at +17.68% annualized vs +13.45%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $118 vs $3 annually, a gap of $115 per year that compounds over a long holding period. On income, HCMT currently yields 0.62% against 1.08% for VOO.
Holdings Overlap
HCMT and VOO share 449 holdings out of 561 unique holdings combined, representing a 72.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, HCMT or VOO?
HCMT has an expense ratio of 1.18% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $115 per year of difference.
Which performed better, HCMT or VOO?
Over the past year HCMT returned +20.26% vs +20.92% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), HCMT annualized +17.68% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, HCMT or VOO?
HCMT has been the more volatile fund at 24.6% annualized versus 14.1% for VOO. Worst drawdown: HCMT -36.3% vs VOO -34.3%.
Should I hold both HCMT and VOO?
HCMT and VOO 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 VOO?
HCMT and VOO share 449 common holdings with a 72.7% weight overlap. Combined, they hold 561 unique securities.
Which pays a higher dividend, HCMT or VOO?
HCMT yields 0.62% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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