Direxion HCM Tactical Enhanced US ETF (Ticker: HCMT)
This ETF aims to outperform major US equity indices during market upswings by utilizing derivatives and minimize losses through investments in cash or cash equivalents during downward trends.
When the Fund is allocated to U.S. equity securities, it will have approximately the following daily exposures: 80% to the S&P 500®, 80% to QQQ, and up to 40% to the Sector Allocation. The Fund will utilize leverage to achieve total exposure of up to 200% of the Fund’s net assets to these allocations. A Sector Allocation of less than 40% may result in the Fund having less than 200% total exposure each day.
The fund seems to have a proprietary, quantitative investment model that attempts to minimize loss and maximize gains across all market conditions.
Given the ETF's complex structure, including 80% exposure to S&P 500 Index, 80% exposure to the largest non-financial U.S. companies on NASDAQ, daily rebalancing, and up to 200% leverage, I'm curious to hear your thoughts.
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Has anyone heard of or invested in this new ETF?
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What are your thoughts on the tactical management approach described?
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Does anyone have experience with such actively managed, leveraged products, and could shed some light on how it works in practice?
Any insights or experiences would be greatly appreciated as I'm trying to understand this new investment vehicle better. Thanks in advance!
https://www.direxion.com/press-release/direxion-launches-actively-managed-tactical-etf
https://direxioninvestments.onlineprospectus.net/DirexionInvestments/HCMT/index.php?ctype=summary
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