HCMT vs. RAFE

Last updated Jul 14, 2026

HCMT (Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds. HCMT is actively managed, while RAFE is passively managed. Over the past 3 years, HCMT returned 16.36%/yr vs 18.76%/yr for RAFE. A 0.73 correlation means they provide meaningful diversification when combined. HCMT charges 1.17%/yr vs 0.30%/yr for RAFE.

Performance

HCMT vs. RAFE - 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 PIMCO RAFI ESG U.S. ETF (RAFE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HCMT achieves a 5.14% return, which is significantly lower than RAFE's 15.70% return.

HCMT

• 1D: -2.63%
• 1M: -1.04%
• 6M: 1.44%
• YTD: 5.14%
• 1Y: 23.50%
• 3Y*: 16.36%
• 5Y*: —
• 10Y*: —

RAFE

• 1D: -0.06%
• 1M: 1.59%
• 6M: 13.30%
• YTD: 15.70%
• 1Y: 28.06%
• 3Y*: 18.76%
• 5Y*: 11.46%
• 10Y*: —

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

HCMT vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
HCMT Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF	5.14%	7.39%	39.14%	6.45%
RAFE PIMCO RAFI ESG U.S. ETF	15.70%	17.60%	13.81%	10.53%

Correlation

The correlation between HCMT and RAFE is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (All Time) Calculated using the full available price history since Jun 22, 2023	0.73

The correlation between HCMT and RAFE has been stable across timeframes, ranging from 0.66 to 0.73 - a consistent structural relationship.

Return for Risk

HCMT vs. RAFE — Risk / Return Rank

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

HCMT

HCMT Risk / Return Rank: 31
HCMT Sharpe Ratio Rank: 29
HCMT Sortino Ratio Rank: 28
HCMT Omega Ratio Rank: 29
HCMT Calmar Ratio Rank: 37
HCMT Martin Ratio Rank: 32

RAFE

RAFE Risk / Return Rank: 89
RAFE Sharpe Ratio Rank: 91
RAFE Sortino Ratio Rank: 91
RAFE Omega Ratio Rank: 89
RAFE Calmar Ratio Rank: 86
RAFE Martin Ratio Rank: 88

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. RAFE - 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 PIMCO RAFI ESG U.S. ETF (RAFE). 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	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	0.87	2.49	-1.62
Sortino ratio: Return per unit of downside risk	1.28	3.48	-2.20
Omega ratio: Gain probability vs. loss probability	1.17	1.45	-0.28
Calmar ratio: Return relative to maximum drawdown	1.55	3.78	-2.23
Martin ratio: Return relative to average drawdown	3.74	14.72	-10.98

HCMT vs. RAFE - Sharpe Ratio Comparison

The current HCMT Sharpe Ratio is 0.87, which is lower than the RAFE Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of HCMT and RAFE, 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. RAFE - Drawdown Comparison

The maximum HCMT drawdown since its inception was -36.26%, roughly equal to the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for HCMT and RAFE.

Drawdown Indicators

	HCMT	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-36.26%	-35.74%	-0.52%
Max Drawdown (1Y) Largest decline over 1 year	-15.27%	-7.46%	-7.81%
Max Drawdown (3Y) Largest decline over 3 years	-36.26%	-16.36%	-19.90%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	-6.27%	-0.06%	-6.21%
Average Drawdown Average peak-to-trough decline	-8.14%	-6.13%	-2.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.29%	1.91%	+4.38%

Volatility

HCMT vs. RAFE - Volatility Comparison

Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) has a higher volatility of 12.17% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 2.78%. This indicates that HCMT's price experiences larger fluctuations and is considered to be riskier than RAFE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HCMT	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.17%	2.78%	+9.39%
Volatility (6M) Calculated over the trailing 6-month period	20.85%	8.59%	+12.26%
Volatility (1Y) Calculated over the trailing 1-year period	27.24%	11.34%	+15.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.12%	15.07%	+14.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.12%	19.33%	+9.79%

HCMT vs. RAFE - Expense Ratio Comparison

HCMT has a 1.17% expense ratio, which is higher than RAFE's 0.30% expense ratio.

Dividends

HCMT vs. RAFE - Dividend Comparison

HCMT's dividend yield for the trailing twelve months is around 0.59%, less than RAFE's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
HCMT Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF	0.59%	0.43%	2.75%	0.63%	0.00%	0.00%	0.00%
RAFE PIMCO RAFI ESG U.S. ETF	1.49%	1.67%	1.79%	1.81%	2.22%	1.42%	2.36%

Frequently Asked Questions

Can I hold both HCMT and RAFE in my portfolio?

HCMT and RAFE have a correlation of 0.66, 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 RAFE?

HCMT has higher volatility (12.17%) compared to RAFE (2.78%). In terms of maximum drawdown, HCMT dropped -36.26% vs RAFE's -35.74%.

Which ETF is better, HCMT or RAFE?

On 3-year performance, RAFE leads with 18.76% vs 16.36% for HCMT. On fees, RAFE is cheaper at 0.30% per year. On volatility, RAFE has been the lower-risk option at 2.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HCMT or RAFE?

Over the 3-year period, RAFE has performed better with a 18.76% return vs 16.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HCMT or RAFE?

RAFE is cheaper with a 0.30% expense ratio, compared with 1.17% for HCMT.

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

RAFE has the higher dividend yield at 1.49%, compared with 0.59% for HCMT.

What is the main difference between HCMT and RAFE?

They also come from different issuers: Direxion and PIMCO. Their fees differ too: 1.17% for HCMT and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.49 vs 0.87), 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.