HCMT vs QQQ
Direxion HCM Tactical Enhanced US ETF vs Invesco QQQ Trust, Series 1
Which is better, HCMT or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 47.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HCMT | QQQ |
|---|---|---|
| Expense Ratio | 1.18% | 0.18%Best |
| AUM | $629M | $506.1B |
| Dividend Yield | 0.47% | 0.42% |
| Holdings | 1,018 | 321 |
| YTD Return | +9.63% | +19.30%Best |
| 1Y Return | +14.08% | +22.47%Best |
| 3Y Return (annualized) | +20.78% | +26.18%Best |
| 5Y Return (annualized) | - | +15.42% |
| Volatility (annualized) | 24.1% | 17.1%Best |
| Max Drawdown | -36.3% | -22.8%Best |
| $10,000 over 3.3 years | $17,267 | $20,218Best |
| Top 10 Weight | 47.2% | 46.7%Best |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jun 22, 2023 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 3.3 years row, are measured over the window both funds cover: Jun 22, 2023 to Oct 14, 2026 (3.3 years).
HCMT vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.3 years both funds cover.
HCMT vs QQQ Performance
Direxion HCM Tactical Enhanced US ETF (HCMT) is an ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HCMT returned +14.08% while QQQ returned +22.47%. Year to date, HCMT is up 9.63% versus a gain of 19.30% for QQQ.
Over three years, HCMT compounded at +20.78% per year against +26.18% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HCMT has been the more volatile fund, with annualized monthly volatility of 24.1% compared with 17.1% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -36.3% for HCMT and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HCMT charges 1.18% per year while QQQ charges 0.18%. On a $10,000 position that is $118 vs $18 annually, a gap of $100 per year that compounds over a long holding period. On income, HCMT currently yields 0.47% against 0.42% for QQQ.
Holdings Overlap
40.5% of HCMT's money is in holdings QQQ also owns. 84.8% of QQQ's money is in holdings HCMT also owns.
Most of QQQ is already inside HCMT. Owning both mostly buys the same companies twice.
81 positions in common, counted across the 506 positions we hold weights for in HCMT and 101 in QQQ, against full books of 1,018 and 321.
What only one of them owns
Our book lists 11 positions for QQQ that do not appear in our book for HCMT (11.4% of the fund), and 399 for HCMT that do not appear in QQQ (57.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in HCMT | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 6.26% | 8.33% | 2.07% |
| AAPLApple, Inc | 5.99% | 7.35% | 1.36% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.60% | 5.76% | 1.16% |
| AMZNAmazon.Com Inc | 3.04% | 4.07% | 1.03% |
| MUMicron Technology, Inc. | 1.28% | 5.02% | 3.74% |
| GOOGLAlphabet Inc-cl A | 2.51% | 3.05% | 0.54% |
| AMDAdvanced Micro Devices Inc. | 0.99% | 4.17% | 3.18% |
| GOOGAlphabet, Inc.- Cl C | 2.00% | 2.85% | 0.85% |
| AVGOBroadcom Inc | 2.00% | 2.53% | 0.53% |
| TSLATesla Motors Inc | 1.24% | 2.82% | 1.58% |
84.8% of QQQ is already inside HCMT.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HCMT or QQQ?
HCMT has an expense ratio of 1.18% while QQQ charges 0.18%. QQQ is the cheaper option, by $100 a year on a $10,000 investment.
Which performed better, HCMT or QQQ?
Over the past year HCMT returned +14.08% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HCMT or QQQ?
HCMT has been the more volatile fund at 24.1% annualized versus 17.1% for QQQ. Worst drawdown: HCMT -36.3% vs QQQ -22.8%.
Should I hold both HCMT and QQQ?
HCMT and QQQ have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between HCMT and QQQ?
84.8% of QQQ's money is in holdings HCMT also owns. 84.8% of QQQ's is in holdings HCMT also owns. They hold 81 positions in common, counted across the 506 positions we hold weights for in HCMT and 101 in QQQ.
Which pays a higher dividend, HCMT or QQQ?
HCMT yields 0.47% while QQQ yields 0.42%, so HCMT currently pays the higher dividend yield.
Is QQQ better than HCMT?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.