QQQU vs. HCMT

Last updated Jun 26, 2026

QQQU (Direxion Daily Magnificent 7 Bull 2X Shares) and HCMT (Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF) are both exchange-traded funds - QQQU is a Leveraged Equities fund tracking the Indxx Magnificent 7 Index (200%), while HCMT is a Large Cap Blend Equities fund actively managed by Direxion. QQQU is passively managed, while HCMT is actively managed. Over the past year, QQQU returned 20.01% vs 28.07% for HCMT. Their correlation of 0.82 suggests significant overlap in exposure. QQQU charges 0.98%/yr vs 1.17%/yr for HCMT.

Performance

QQQU vs. HCMT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Magnificent 7 Bull 2X Shares (QQQU) and Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QQQU achieves a -17.64% return, which is significantly lower than HCMT's 4.25% return.

QQQU

• 1D: -4.93%
• 1M: -23.60%
• YTD: -17.64%
• 6M: -20.69%
• 1Y: 20.01%
• 3Y*: —
• 5Y*: —
• 10Y*: —

HCMT

• 1D: 0.62%
• 1M: -3.42%
• YTD: 4.25%
• 6M: 1.41%
• 1Y: 28.07%
• 3Y*: 19.36%
• 5Y*: —
• 10Y*: —

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

QQQU vs. HCMT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
QQQU Direxion Daily Magnificent 7 Bull 2X Shares	-17.64%	32.87%	87.67%
HCMT Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF	4.25%	7.39%	23.81%

Correlation

The correlation between QQQU and HCMT is 0.76, 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	0.76
Correlation (All Time) Calculated using the full available price history since Mar 7, 2024	0.82

The correlation between QQQU and HCMT has been stable across timeframes, ranging from 0.76 to 0.82 - a consistent structural relationship.

QQQU vs. HCMT - Sectors Allocation Comparison

Sectors	QQQU	HCMT
Technology	43.3%	39.1%
Consumer Cyclical	29.1%	9.9%
Communication Services	27.6%	10.6%
Basic Materials	-	1.7%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Financial Services	-	11.1%
Healthcare	-	8.3%
Industrials	-	7.8%
Real Estate	-	1.8%
Utilities	-	2.1%

Return for Risk

QQQU vs. HCMT — Risk / Return Rank

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

QQQU

QQQU Risk / Return Rank: 17
QQQU Sharpe Ratio Rank: 17
QQQU Sortino Ratio Rank: 18
QQQU Omega Ratio Rank: 18
QQQU Calmar Ratio Rank: 16
QQQU Martin Ratio Rank: 17

HCMT

HCMT Risk / Return Rank: 34
HCMT Sharpe Ratio Rank: 32
HCMT Sortino Ratio Rank: 30
HCMT Omega Ratio Rank: 32
HCMT Calmar Ratio Rank: 41
HCMT Martin Ratio Rank: 33

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.

QQQU vs. HCMT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Magnificent 7 Bull 2X Shares (QQQU) and Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT). 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.

	QQQU	HCMT	Difference
Sharpe ratio: Return per unit of total volatility	0.48	1.07	-0.59
Sortino ratio: Return per unit of downside risk	0.91	1.50	-0.58
Omega ratio: Gain probability vs. loss probability	1.11	1.20	-0.09
Calmar ratio: Return relative to maximum drawdown	0.55	1.85	-1.29
Martin ratio: Return relative to average drawdown	1.63	4.55	-2.93

QQQU vs. HCMT - Sharpe Ratio Comparison

The current QQQU Sharpe Ratio is 0.48, which is lower than the HCMT Sharpe Ratio of 1.07. The chart below compares the historical Sharpe Ratios of QQQU and HCMT, 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

QQQU vs. HCMT - Drawdown Comparison

The maximum QQQU drawdown since its inception was -53.70%, which is greater than HCMT's maximum drawdown of -36.26%. Use the drawdown chart below to compare losses from any high point for QQQU and HCMT.

Drawdown Indicators

	QQQU	HCMT	Difference
Max Drawdown Largest peak-to-trough decline	-53.70%	-36.26%	-17.44%
Max Drawdown (1Y) Largest decline over 1 year	-36.29%	-15.27%	-21.02%
Max Drawdown (3Y) Largest decline over 3 years	—	-36.26%	—
Current Drawdown Current decline from peak	-26.44%	-7.06%	-19.38%
Average Drawdown Average peak-to-trough decline	-13.39%	-8.17%	-5.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.32%	6.18%	+6.14%

Volatility

QQQU vs. HCMT - Volatility Comparison

Direxion Daily Magnificent 7 Bull 2X Shares (QQQU) has a higher volatility of 14.99% compared to Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF (HCMT) at 12.21%. This indicates that QQQU's price experiences larger fluctuations and is considered to be riskier than HCMT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQU	HCMT	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.99%	12.21%	+2.78%
Volatility (6M) Calculated over the trailing 6-month period	31.22%	19.52%	+11.70%
Volatility (1Y) Calculated over the trailing 1-year period	41.47%	26.29%	+15.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	53.24%	28.98%	+24.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	53.24%	28.98%	+24.26%

QQQU vs. HCMT - Expense Ratio Comparison

QQQU has a 0.98% expense ratio, which is lower than HCMT's 1.17% expense ratio.

Dividends

QQQU vs. HCMT - Dividend Comparison

QQQU's dividend yield for the trailing twelve months is around 11.59%, more than HCMT's 0.60% yield.

Position	TTM	2025	2024	2023
HCMT Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF	0.60%	0.43%	2.75%	0.63%
QQQU Direxion Daily Magnificent 7 Bull 2X Shares	11.59%	9.62%	2.75%	0.00%

Frequently Asked Questions

Can I hold both QQQU and HCMT in my portfolio?

QQQU and HCMT have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQU or HCMT?

QQQU has higher volatility (14.99%) compared to HCMT (12.21%). In terms of maximum drawdown, QQQU dropped -53.70% vs HCMT's -36.26%.

Which ETF is better, QQQU or HCMT?

On 1-year performance, HCMT leads with 28.07% vs 20.01% for QQQU. On fees, QQQU is cheaper at 0.98% per year. On volatility, HCMT has been the lower-risk option at 12.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QQQU or HCMT?

Over the 1-year period, HCMT has performed better with a 28.07% return vs 20.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QQQU or HCMT?

QQQU is cheaper with a 0.98% expense ratio, compared with 1.17% for HCMT.

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

QQQU has the higher dividend yield at 11.59%, compared with 0.60% for HCMT.

What is the main difference between QQQU and HCMT?

QQQU is categorized as Leveraged Equities, while HCMT is Large Cap Blend Equities. Their fees differ too: 0.98% for QQQU and 1.17% for HCMT.

Which has better risk-adjusted returns?

HCMT currently has the higher Sharpe Ratio (1.07 vs 0.48), 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.