HCOM vs VGI

Quick Verdict

HCOM has a lower expense ratio. VGI delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.

Lower Fees: HCOMHigher Returns: VGIMore Diversified: VGI

Side-by-Side Comparison

MetricHCOMVGIWinner
Expense Ratio0.59%1.74%
AUM$9M$88M
Dividend Yield10.95%11.98%
Holdings55646
YTD Return+0.71%+1.47%
1Y Return-4.90%+5.12%
3Y Return (annualized)-6.95%+11.60%
5Y Return (annualized)-+2.10%
Volatility (annualized)14.7%14.2%
Max Drawdown-28.8%-63.3%
Fund FamilyHartford FundsVirtus Investment Partners
CategoryCommodityFixed Income
InceptionSep 14, 2021Feb 23, 2012

HCOM vs VGI Performance

Hartford Schroders Commodity Strategy ETF (HCOM) is a ETF from Hartford Funds and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year HCOM returned -4.90% while VGI returned +5.12%. Year to date, HCOM is up 0.71% versus a gain of 1.47% for VGI.

Over three years, HCOM compounded at -6.95% per year against +11.60% for VGI. Across the full 4-year window we track, HCOM has the edge at +0.68% annualized vs -2.38%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HCOM has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 14.2% for VGI. 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 -63.3% for VGI. 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HCOM charges 0.59% per year while VGI charges 1.74%. On a $10,000 position that is $59 vs $174 annually, a gap of $115 per year that compounds over a long holding period. On income, HCOM currently yields 10.95% against 11.98% for VGI.

Frequently Asked Questions

Which is cheaper, HCOM or VGI?

HCOM has an expense ratio of 0.59% while VGI charges 1.74%. HCOM is the cheaper option. On a $10,000 investment, that is $115 per year of difference.

Which performed better, HCOM or VGI?

Over the past year HCOM returned -4.90% vs +5.12% for VGI, so VGI leads on 1-year performance. Over the longest common window we track (4 years), HCOM annualized +0.68% vs -2.38% for VGI. Past performance does not guarantee future results.

Which is riskier, HCOM or VGI?

HCOM has been the more volatile fund at 14.7% annualized versus 14.2% for VGI. Worst drawdown: HCOM -28.8% vs VGI -63.3%.

Should I hold both HCOM and VGI?

HCOM and VGI have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, HCOM or VGI?

HCOM yields 10.95% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.

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