HCMT vs. MTUM

Last updated Jun 24, 2026

HCMT (Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF) and MTUM (iShares MSCI USA Momentum Factor ETF) are both exchange-traded funds - HCMT is a Large Cap Blend Equities fund actively managed by Direxion, while MTUM is a Momentum fund tracking the MSCI USA Momentum SR Variant Index. HCMT is actively managed, while MTUM is passively managed. Over the past 3 years, HCMT returned 18.91%/yr vs 33.87%/yr for MTUM. Their correlation of 0.85 suggests significant overlap in exposure. HCMT charges 1.17%/yr vs 0.15%/yr for MTUM.

Performance

HCMT vs. MTUM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) and iShares MSCI USA Momentum Factor ETF (MTUM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HCMT achieves a 4.79% return, which is significantly lower than MTUM's 32.00% return.

HCMT

• 1D: -4.45%
• 1M: -0.81%
• YTD: 4.79%
• 6M: 2.44%
• 1Y: 32.49%
• 3Y*: 18.91%
• 5Y*: —
• 10Y*: —

MTUM

• 1D: -4.48%
• 1M: 8.74%
• YTD: 32.00%
• 6M: 29.92%
• 1Y: 41.78%
• 3Y*: 33.87%
• 5Y*: 15.18%
• 10Y*: 17.49%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HCMT vs. MTUM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
HCMT Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF	4.79%	7.39%	39.14%	6.45%
MTUM iShares MSCI USA Momentum Factor ETF	32.00%	22.15%	32.89%	11.41%

Correlation

The correlation between HCMT and MTUM is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jun 22, 2023	0.85

The correlation between HCMT and MTUM has been stable across timeframes, ranging from 0.80 to 0.85 - a consistent structural relationship.

HCMT vs. MTUM - Sectors Allocation Comparison

Sectors	HCMT	MTUM
Technology	39.1%	50.2%
Financial Services	11.1%	5.0%
Communication Services	10.6%	5.1%
Consumer Cyclical	9.9%	2.9%
Healthcare	8.3%	3.5%
Industrials	7.8%	15.0%
Consumer Defensive	4.5%	3.7%
Energy	3.1%	10.5%
Utilities	2.1%	0.6%
Real Estate	1.8%	1.3%
Basic Materials	1.7%	2.3%

Return for Risk

HCMT vs. MTUM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HCMT

HCMT Risk / Return Rank: 37
HCMT Sharpe Ratio Rank: 37
HCMT Sortino Ratio Rank: 34
HCMT Omega Ratio Rank: 36
HCMT Calmar Ratio Rank: 45
HCMT Martin Ratio Rank: 36

MTUM

MTUM Risk / Return Rank: 64
MTUM Sharpe Ratio Rank: 59
MTUM Sortino Ratio Rank: 54
MTUM Omega Ratio Rank: 59
MTUM Calmar Ratio Rank: 74
MTUM Martin Ratio Rank: 76

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HCMT vs. MTUM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) and iShares MSCI USA Momentum Factor ETF (MTUM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	HCMT	MTUM	Difference
Sharpe ratio: Return per unit of total volatility	1.24	1.92	-0.68
Sortino ratio: Return per unit of downside risk	1.68	2.53	-0.85
Omega ratio: Gain probability vs. loss probability	1.23	1.35	-0.12
Calmar ratio: Return relative to maximum drawdown	2.14	3.64	-1.50
Martin ratio: Return relative to average drawdown	5.30	13.91	-8.61

HCMT vs. MTUM - Sharpe Ratio Comparison

The current HCMT Sharpe Ratio is 1.24, which is lower than the MTUM Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of HCMT and MTUM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HCMT vs. MTUM - Drawdown Comparison

The maximum HCMT drawdown since its inception was -36.26%, which is greater than MTUM's maximum drawdown of -34.08%. Use the drawdown chart below to compare losses from any high point for HCMT and MTUM.

Drawdown Indicators

	HCMT	MTUM	Difference
Max Drawdown Largest peak-to-trough decline	-36.26%	-34.08%	-2.18%
Max Drawdown (1Y) Largest decline over 1 year	-15.27%	-11.54%	-3.73%
Max Drawdown (3Y) Largest decline over 3 years	-36.26%	-20.99%	-15.27%
Max Drawdown (5Y) Largest decline over 5 years	—	-32.28%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-34.08%	—
Current Drawdown Current decline from peak	-6.58%	-4.48%	-2.10%
Average Drawdown Average peak-to-trough decline	-8.18%	-6.19%	-1.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.15%	3.01%	+3.14%

Volatility

HCMT vs. MTUM - Volatility Comparison

Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) and iShares MSCI USA Momentum Factor ETF (MTUM) have volatilities of 12.47% and 12.20%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HCMT	MTUM	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.47%	12.20%	+0.27%
Volatility (6M) Calculated over the trailing 6-month period	19.67%	19.44%	+0.23%
Volatility (1Y) Calculated over the trailing 1-year period	26.47%	21.93%	+4.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.01%	21.15%	+7.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.01%	21.31%	+7.70%

HCMT vs. MTUM - Expense Ratio Comparison

HCMT has a 1.17% expense ratio, which is higher than MTUM's 0.15% expense ratio.

Dividends

HCMT vs. MTUM - Dividend Comparison

HCMT's dividend yield for the trailing twelve months is around 0.40%, less than MTUM's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HCMT Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF	0.40%	0.43%	2.75%	0.63%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MTUM iShares MSCI USA Momentum Factor ETF	0.56%	0.91%	0.75%	1.35%	1.80%	0.55%	0.83%	1.48%	1.27%	1.02%	1.43%	1.12%

Frequently Asked Questions

Can I hold both HCMT and MTUM in my portfolio?

HCMT and MTUM have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HCMT or MTUM?

HCMT has higher volatility (12.47%) compared to MTUM (12.20%). In terms of maximum drawdown, HCMT dropped -36.26% vs MTUM's -34.08%.

Which ETF is better, HCMT or MTUM?

On 3-year performance, MTUM leads with 33.87% vs 18.91% for HCMT. On fees, MTUM is cheaper at 0.15% per year. On volatility, MTUM has been the lower-risk option at 12.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HCMT or MTUM?

Over the 3-year period, MTUM has performed better with a 33.87% return vs 18.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HCMT or MTUM?

MTUM is cheaper with a 0.15% expense ratio, compared with 1.17% for HCMT.

Which ETF pays a higher dividend yield, HCMT or MTUM?

MTUM has the higher dividend yield at 0.56%, compared with 0.40% for HCMT.

What is the main difference between HCMT and MTUM?

HCMT is categorized as Large Cap Blend Equities, while MTUM is Momentum. They also come from different issuers: Direxion and iShares. Their fees differ too: 1.17% for HCMT and 0.15% for MTUM.

Which has better risk-adjusted returns?

MTUM currently has the higher Sharpe Ratio (1.92 vs 1.24), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.