HCMT vs VYM
Direxion HCM Tactical Enhanced US ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | HCMT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.04% | |
| AUM | $625M | $81.6B | |
| Dividend Yield | 0.62% | 2.24% | |
| Holdings | 509 | 616 | |
| YTD Return | +7.71% | +15.75% | |
| 1Y Return | +19.05% | +23.85% | |
| 3Y Return (annualized) | +20.03% | +19.14% | |
| 5Y Return (annualized) | - | +12.45% | |
| Volatility (annualized) | 24.7% | 14.6% | |
| Max Drawdown | -36.3% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 22, 2023 | Nov 10, 2006 |
HCMT vs VYM Performance
Direxion HCM Tactical Enhanced US ETF (HCMT) is a ETF from Direxion Shares ETF Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HCMT returned +19.05% while VYM returned +23.85%. Year to date, HCMT is up 7.71% versus a gain of 15.75% for VYM.
Over three years, HCMT compounded at +20.03% per year against +19.14% for VYM. Across the full 3-year window we track, HCMT has the edge at +18.31% annualized vs +7.06%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HCMT charges 1.18% per year while VYM charges 0.04%. On a $10,000 position that is $118 vs $4 annually, a gap of $114 per year that compounds over a long holding period. On income, HCMT currently yields 0.62% against 2.24% for VYM.
Holdings Overlap
HCMT and VYM share 230 holdings out of 878 unique holdings combined, representing a 26.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HCMT or VYM?
HCMT has an expense ratio of 1.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $114 per year of difference.
Which performed better, HCMT or VYM?
Over the past year HCMT returned +19.05% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), HCMT annualized +18.31% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, HCMT or VYM?
HCMT has been the more volatile fund at 24.7% annualized versus 14.6% for VYM. Worst drawdown: HCMT -36.3% vs VYM -58.8%.
Should I hold both HCMT and VYM?
HCMT and VYM have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HCMT and VYM?
HCMT and VYM share 230 common holdings with a 26.2% weight overlap. Combined, they hold 878 unique securities.
Which pays a higher dividend, HCMT or VYM?
HCMT yields 0.62% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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