HCMT vs. SPY

Last updated Jun 24, 2026

HCMT (Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - HCMT is a Large Cap Blend Equities fund actively managed by Direxion, while SPY is a S&P 500 fund tracking the S&P 500 Index. HCMT is actively managed, while SPY is passively managed. Over the past 3 years, HCMT returned 18.91%/yr vs 20.68%/yr for SPY. Their correlation of 0.92 suggests significant overlap in exposure. HCMT charges 1.17%/yr vs 0.09%/yr for SPY.

Performance

HCMT vs. SPY - 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 State Street SPDR S&P 500 ETF (SPY). 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 SPY's 8.15% return.

HCMT

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

SPY

• 1D: -1.45%
• 1M: -1.36%
• YTD: 8.15%
• 6M: 7.20%
• 1Y: 23.59%
• 3Y*: 20.68%
• 5Y*: 13.05%
• 10Y*: 15.53%

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

HCMT vs. SPY - 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%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	10.11%

Correlation

The correlation between HCMT and SPY is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jun 22, 2023	0.92

The correlation between HCMT and SPY has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

HCMT vs. SPY - Sectors Allocation Comparison

Sectors	HCMT	SPY
Technology	39.1%	39.0%
Financial Services	11.1%	11.1%
Communication Services	10.6%	10.6%
Consumer Cyclical	9.9%	9.9%
Healthcare	8.3%	8.3%
Industrials	7.8%	7.8%
Consumer Defensive	4.5%	4.5%
Energy	3.1%	3.1%
Utilities	2.1%	2.1%
Real Estate	1.8%	1.8%
Basic Materials	1.7%	1.7%

Return for Risk

HCMT vs. SPY — 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

SPY

SPY Risk / Return Rank: 59
SPY Sharpe Ratio Rank: 58
SPY Sortino Ratio Rank: 56
SPY Omega Ratio Rank: 57
SPY Calmar Ratio Rank: 56
SPY Martin Ratio Rank: 67

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. SPY - 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 State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.24	1.90	-0.66
Sortino ratio: Return per unit of downside risk	1.68	2.58	-0.90
Omega ratio: Gain probability vs. loss probability	1.23	1.34	-0.12
Calmar ratio: Return relative to maximum drawdown	2.14	2.67	-0.53
Martin ratio: Return relative to average drawdown	5.30	11.92	-6.62

HCMT vs. SPY - Sharpe Ratio Comparison

The current HCMT Sharpe Ratio is 1.24, which is lower than the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of HCMT and SPY, 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. SPY - Drawdown Comparison

The maximum HCMT drawdown since its inception was -36.26%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for HCMT and SPY.

Drawdown Indicators

	HCMT	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-36.26%	-55.19%	+18.93%
Max Drawdown (1Y) Largest decline over 1 year	-15.27%	-8.88%	-6.39%
Max Drawdown (3Y) Largest decline over 3 years	-36.26%	-18.76%	-17.50%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-6.58%	-3.17%	-3.41%
Average Drawdown Average peak-to-trough decline	-8.18%	-9.04%	+0.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.15%	1.98%	+4.17%

Volatility

HCMT vs. SPY - Volatility Comparison

Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) has a higher volatility of 12.47% compared to State Street SPDR S&P 500 ETF (SPY) at 4.87%. This indicates that HCMT's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HCMT	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.47%	4.87%	+7.60%
Volatility (6M) Calculated over the trailing 6-month period	19.67%	9.85%	+9.82%
Volatility (1Y) Calculated over the trailing 1-year period	26.47%	12.50%	+13.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.01%	17.15%	+11.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.01%	17.95%	+11.06%

HCMT vs. SPY - Expense Ratio Comparison

HCMT has a 1.17% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

HCMT vs. SPY - Dividend Comparison

HCMT's dividend yield for the trailing twelve months is around 0.40%, less than SPY's 1.03% 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%
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both HCMT and SPY in my portfolio?

With a correlation of 0.90, HCMT and SPY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, HCMT or SPY?

HCMT has higher volatility (12.47%) compared to SPY (4.87%). In terms of maximum drawdown, HCMT dropped -36.26% vs SPY's -55.19%.

Which ETF is better, HCMT or SPY?

On 3-year performance, SPY leads with 20.68% vs 18.91% for HCMT. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HCMT or SPY?

Over the 3-year period, SPY has performed better with a 20.68% 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 SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 1.17% for HCMT.

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

SPY has the higher dividend yield at 1.03%, compared with 0.40% for HCMT.

What is the main difference between HCMT and SPY?

HCMT is categorized as Large Cap Blend Equities, while SPY is S&P 500. They also come from different issuers: Direxion and State Street. Their fees differ too: 1.17% for HCMT and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.90 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.