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Direxion HCM Tactical Enhanced US ETF

HCMT is an actively managed fund-of-funds that toggles between a 200% leveraged US equity position and a 100% investment to cash or cash equivalents based on a proprietary tactical indicator that identifies broad trends in the US equity markets.

While the new year is certainly an exciting prospect for most folks, investors may have a bit of trepidation. A tactical strategy might be the right play.

Uncertain About 2025's Market Cycles? Consider a Tactical ETF

The Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF uses a 200% leveraged, rules-based model to tactically invest in U.S. equities and cash. HCMT's flexible allocation strategy involves significant exposure to the S&P 500 and Nasdaq-100, with sector allocations adjusting based on market conditions. The fund's high expense ratio (2.02%) and reliance on market timing present risks, but its tactical approach aims to mitigate volatility and boost returns.

HCMT: A Unique Spin On Leverage Timing

Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF offers diversification with leveraged sectoral allocation. I recommend a Hold for HCMT due to potential for alpha generation with sectoral exposure, but it may not be suitable for very aggressive investors. I recommend allocating 20-50% of your portfolio to specific sectors showing upward trends, with HCMT as one example.

HCMT: Coming A Full Circle On Diversification Vs. Sectoral Exposure

The Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF aims to capture up to 200% of the upside while minimizing losses during Bear markets. The fund uses a proprietary quantitative investment model to determine asset allocation and utilizes leverage for exposure. The ETF is actively managed, investing in US equity and fixed income markets. This article reviews the ETF and compares its short historical results against a sample portfolio of its targeted assets. Due to its limited history, it earns a Hold rating.

HCMT: This Leveraged Rotational ETF Turns 1, Gets Hold Rating

Direxion launched the actively managed Direxion HCM Tactical Enhanced US ETF (NYSE Arca: HCMT) on the New York Stock Exchange. HCMT seeks to provide enhanced returns across multiple market cycles that are broadly correlated to the U.S. equity markets.

News for Direxion HCM Tactical Enhanced US ETF ETF (HCMT)