HCOM vs SOXL

Quick Verdict

HCOM has a lower expense ratio. SOXL delivered stronger 1-year returns. HCOM offers more diversification with 55 holdings.

Lower Fees: HCOMHigher Returns: SOXLMore Diversified: HCOM

Side-by-Side Comparison

MetricHCOMSOXLWinner
Expense Ratio0.59%0.75%
AUM$9M$18.8B
Dividend Yield10.95%0.00%
Holdings5543
YTD Return+0.71%+196.89%
1Y Return-4.90%+461.00%
3Y Return (annualized)-6.95%+79.61%
5Y Return (annualized)-+25.45%
Volatility (annualized)14.7%87.8%
Max Drawdown-28.8%-90.5%
Fund FamilyHartford FundsDirexion Shares ETF Trust
CategoryCommodityAlternative
InceptionSep 14, 2021Mar 11, 2010

HCOM vs SOXL Performance

Hartford Schroders Commodity Strategy ETF (HCOM) is a ETF from Hartford Funds and Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust. Over the past year HCOM returned -4.90% while SOXL returned +461.00%. Year to date, HCOM is up 0.71% versus a gain of 196.89% for SOXL.

Over three years, HCOM compounded at -6.95% per year against +79.61% for SOXL. Across the full 4-year window we track, SOXL has the edge at +38.80% annualized vs +0.68%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SOXL has been the more volatile fund, with annualized monthly volatility of 87.8% compared with 14.7% for HCOM. 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 -28.8% for HCOM and -90.5% for SOXL. 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HCOM charges 0.59% per year while SOXL charges 0.75%. On a $10,000 position that is $59 vs $75 annually, a gap of $16 per year that compounds over a long holding period. On income, HCOM currently yields 10.95% against 0.00% for SOXL.

Frequently Asked Questions

Which is cheaper, HCOM or SOXL?

HCOM has an expense ratio of 0.59% while SOXL charges 0.75%. HCOM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, HCOM or SOXL?

Over the past year HCOM returned -4.90% vs +461.00% for SOXL, so SOXL leads on 1-year performance. Over the longest common window we track (4 years), HCOM annualized +0.68% vs +38.80% for SOXL. Past performance does not guarantee future results.

Which is riskier, HCOM or SOXL?

SOXL has been the more volatile fund at 87.8% annualized versus 14.7% for HCOM. Worst drawdown: HCOM -28.8% vs SOXL -90.5%.

Should I hold both HCOM and SOXL?

HCOM and SOXL have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, HCOM or SOXL?

HCOM yields 10.95% while SOXL yields 0.00%, so HCOM currently pays the higher dividend yield.

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