HCMT vs. QQQ
Compare and contrast key facts about Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) and Invesco QQQ (QQQ).
HCMT and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. HCMT is an actively managed fund by Direxion. It was launched on Jun 21, 2023. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: HCMT or QQQ.
Key characteristics
| HCMT | QQQ | |
|---|---|---|
| YTD Return | 43.10% | 25.63% |
| 1Y Return | 59.29% | 33.85% |
| Sharpe Ratio | 2.30 | 2.12 |
| Sortino Ratio | 2.83 | 2.79 |
| Omega Ratio | 1.39 | 1.38 |
| Calmar Ratio | 3.11 | 2.71 |
| Martin Ratio | 11.55 | 9.88 |
| Ulcer Index | 5.65% | 3.72% |
| Daily Std Dev | 28.40% | 17.31% |
| Max Drawdown | -20.99% | -82.98% |
| Current Drawdown | -0.60% | -0.37% |
Correlation
The correlation between HCMT and QQQ is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
HCMT vs. QQQ - Performance Comparison
In the year-to-date period, HCMT achieves a 43.10% return, which is significantly higher than QQQ's 25.63% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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HCMT vs. QQQ - Expense Ratio Comparison
HCMT has a 1.17% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
HCMT vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) and Invesco QQQ (QQQ). 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.
Dividends
HCMT vs. QQQ - Dividend Comparison
HCMT's dividend yield for the trailing twelve months is around 0.75%, more than QQQ's 0.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HCMT Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF | 0.75% | 0.63% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
HCMT vs. QQQ - Drawdown Comparison
The maximum HCMT drawdown since its inception was -20.99%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for HCMT and QQQ. For additional features, visit the drawdowns tool.
Volatility
HCMT vs. QQQ - Volatility Comparison
Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) has a higher volatility of 8.24% compared to Invesco QQQ (QQQ) at 4.91%. This indicates that HCMT's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.