At a glance
HCMT charges 1.18% a year, above the 0.14% average of the 6 funds most like it (the most expensive of 7). It has $563.3M in assets, the 7th largest of that group; it paid 0.49% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +4.0% with distributions reinvested (S&P 500: +11.5%), the weakest of those 7 funds; over three years it returned +23.1% a year. Its ten largest positions make up 29.9% of the fund, out of 503 in all.
The short version
Direxion HCM Tactical Enhanced US ETF (HCMT) is an actively managed fund that moves between US stocks and cash based on a trend signal from its subadviser, Howard Capital Management. When it holds stocks, it uses swaps to reach up to 200% exposure. That leverage sets it apart from plain S&P 500 trackers. So does its cost: a 1.18% expense ratio, against a 0.14% average for similar large-company funds.
Price history
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HCMT +4.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HCMT official prospectus, to Dec 31, 2025 | — | +7.27% | — | — | — | +20.50% |
| HCMT price data to Oct 27, 2026 | +8.3% | +4.0% | +23.1% | — | — | +17.4% |
- Over the year to Oct 27, 2026, HCMT returned +4.0%, 7th of 7 among similar funds.
- Its worst full calendar year was 2025 (+7.4%); its best was 2024 (+39.1%).
- The deepest fall in its price history was 36.3% (Feb 19, 2025 to Apr 21, 2025), recovered by Oct 24, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.3% | — |
| 2025 | +7.4% | +7.27% |
| 2024 | +39.1% | +39.45% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.1940 | |
| 2025 | $0.1600 | -83.7% |
| 2024 | $0.9800 |
What's inside
As of Jul 31, 2026, the fund held 503 securities; the ten largest made up 29.93% of assets, and 17.99% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| NVIDIA CORP | 6.01% | |
| APPLE INC | 5.61% | |
| MICROSOFT CORP | 4.26% | |
| AMAZON.COM INC | 3.28% | |
| ALPHABET INC Class A | 2.58% | |
| BROADCOM INC | 2.28% | |
| ALPHABET INC Class C | 2.08% | |
| META PLATFORMS INC | 1.51% | |
| JP MORGAN CHASE & COMPANY | 1.16% | |
| BERKSHIRE HATHAWAY INC | 1.16% | |
| MICRON TECHNOLOGY INC | 1.15% | |
| ELI LILLY & COMPANY | 1.12% | |
| TESLA INC | 1.08% | |
| ADVANCED MICRO DEVICES INC | 0.96% | |
| EXXONMOBIL HOLDINGS CORP | 0.80% |
By country
United States 79.45%Netherlands 0.07%By asset type
Stocks 79.52%By sector
Sectors of the companies held, for the 71.8% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $14.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +14.56%, -0.70%, -7.70%.
How it works
HCMT is actively managed, not tied to an index. Its subadviser, Howard Capital Management, uses a proprietary model built on a trend signal called the HCM-BuyLine. When the signal shows US stocks trending up, the adviser, Rafferty Asset Management, raises stock exposure. When the trend turns down, the fund shifts toward cash equivalents such as money market funds and short-term US government securities. The stronger the trend, the further in or out the adviser may go.
When invested in stocks, the fund aims for up to 80% exposure to the S&P 500, up to 80% to the Nasdaq-100 and up to 40% to a single sector or industry. The model picks that sector from 13 candidates by scoring recent price strength and volatility, and the pick can change often. Combined exposure can reach 200% of net assets, so daily moves can be up to double those of the stocks underneath.
Leverage comes mainly from swaps: contracts in which a bank or dealer pays the fund the return of an index or ETF. As of July 31, 2026, its swaps referenced the Invesco QQQ Trust and the Technology Select Sector SPDR. The adviser may rebalance as often as daily. Because returns compound daily, results over months can differ from what the leverage implies, especially in choppy markets.
What it really costs
- HCMT charges 1.18% a year, versus an average of 0.14% for the similar funds below (7th of 7, cheapest first).
- Of that, 1.05% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $120 in the first year and $1,432 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HCMT | $120 | $375 | $649 | $1,432 |
In a retirement portfolio
Up to 200% stock exposure, high volatility and a 1.18% expense ratio make it a small, higher-risk add-on rather than a core holding.
HCMT launched on June 22, 2023, so it has no record through the 2008 crisis, the 2020 COVID crash or the 2022 bear market. Both of its full calendar years were positive. Its weakest was 2025, up about 7.4%. Even so, its trend signal didn't prevent a 36.3% drop from February 19 to April 21, 2025. It took about 6.1 months to recover, by October 24, 2025. As of October 27, 2026, its one-year beta (how strongly it moves with the market) was 1.95. That means someone drawing money from it could be forced to sell after a steep fall. The yield was 0.49%, paid quarterly, so it provides little income. Costs are high: the SEC's standard example shows $1,432 in expenses over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a small, higher-risk position that can reach 200% exposure to US large companies and move to cash on a trend signal.
- People willing to pay a 1.18% expense ratio, against 0.03% for VOO, for active, model-driven management from Howard Capital Management.
- Holders who could sit through drops like the 36.3% fall from February to April 2025 without needing to sell.
Look elsewhere if
- Investors looking for a low-cost core US stock fund. SPY, IVV and VOO hold many of the same companies for a fraction of the cost.
- Retirees who want income. The yield was 0.49% as of October 27, 2026, paid quarterly.
- Anyone who wants a long record. The fund launched in June 2023 and has no history through the 2020 or 2022 downturns.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| HCMT this fund | — | 1.18% | $563.3M | +4.0% | +23.1% |
| QDPL Pacer Metaurus US Large Cap Dividend Multip… | 80% | 0.6% | $1.71B | +12.6% | +22.7% |
| SCHX Schwab U.S. Large-Cap ETF | 79% | 0.03% | $74.17B | +10.9% | +21.9% |
| SPY SPDR S&P 500 ETF Trust | 79% | 0.0945% | $781.19B | +11.5% | +21.9% |
| IVV iShares Core S&P 500 ETF | 79% | 0.03% | $888.13B | +11.5% | +22.0% |
| VOO Vanguard S&P 500 ETF | 79% | 0.03% | $1.67T | +12.4% | +23.6% |
| USPX Franklin U.S. Equity Index ETF | 77% | 0.03% | $1.98B | +12.9% | +24.9% |
Questions investors ask
Is HCMT a leveraged ETF?
Yes, when it holds stocks. The prospectus says the fund uses swaps and other derivatives to reach up to 200% exposure to the S&P 500, the Nasdaq-100 and one chosen sector. When its trend model signals a downturn, it can move partly or fully to cash. The leverage resets daily, so returns over longer periods compound. They can differ a lot from twice the market's return, and losses can be larger than in an unleveraged fund.
What's the difference between HCMT and VOO?
VOO simply tracks the S&P 500 for a 0.03% expense ratio. HCMT is actively managed, uses up to 200% leverage, can move to cash and charges 1.18%. Their holdings overlapped by about 79%, based on the latest fund reports. HCMT returned 4.0% over the year to October 27, 2026. VOO returned 12.4% over the year to October 30, 2026. Over three years, the two were close: 23.1% a year for HCMT and 23.6% for VOO.
How much does HCMT cost to own?
HCMT's expense ratio is 1.18%, which includes a 1.05% management fee, according to the prospectus filed February 26, 2026. The average for similar large-company funds is 0.14%. In the SEC's standard example, $10,000 invested with a 5% yearly return would cost about $120 in the first year, $649 over five years and $1,432 over ten years. Frequent sector changes can also add trading costs.
Does HCMT pay dividends?
Yes, but not much. HCMT pays distributions quarterly. Over the 12 months to October 27, 2026, it paid about $0.204 per share, a yield of 0.49%. That is low because much of its stock exposure comes through swaps, and part of its assets can sit in cash. Investors looking mainly for income will find that most of HCMT's return has to come from price changes.
How has HCMT performed since it launched?
HCMT's results have been strong at times and uneven overall. The prospectus reports a 39.45% gain in 2024, 7.27% in 2025, and 20.5% a year from launch through December 31, 2025. Its worst quarter was a 16.07% loss in the quarter ended March 31, 2025. From February to April 2025, it fell 36.3%. Over the year to October 27, 2026, it returned 4.0%, the lowest among the six similar funds it was compared with.