DFAC vs HCMT

DFACADimensional US Core Equity 2 ETF

HCMTFDirexion HCM Tactical Enhanced US ETF

In short

DFAC Dimensional's whole-market workhorse: roughly 2,600 US stocks in one ticker, run by managers who weigh federal tax consequences before they trade, at a fee closer to index funds than to active ones.

HCMT A market-timing model in ETF form. HCMT follows the HCM-BuyLine signal: leveraged exposure to a broad basket of US stocks when the trend is on, cash when it flips off. An all-in-or-all-out design few active US equity funds attempt.

Stated mandate

DFAC The fund seeks long-term capital appreciation while considering federal income-tax implications in its investment decisions.

HCMT The Fund seeks capital appreciation and enhanced returns across market cycles broadly correlated with U.S. equities. Its model shifts assets between U.S. equity securities and cash, using derivatives for leveraged exposure when allocated to equities.

Why people hold it

• DFAC 0.17% a year for an actively run fund, well under the median fee among active US equity ETFs.
• About 2,600 US stocks under one ticker, so it holds the market broadly rather than a narrow slice of it.
• Federal income-tax implications sit inside the stated objective, not in a footnote, so they factor into what managers buy and sell.
• A multi-billion-dollar fund with a track record running back to 2007 and one of the strongest implementations in its peer group.

• HCMT One ticker, one decision rule. The HCM-BuyLine momentum signal moves the fund between derivative-boosted US equity exposure and cash, instead of leaving the timing call to you.
• The equity sleeve is broad, roughly 500 US stocks, so the leverage rides the whole market rather than a handful of names.
• Conventional 1940 Act fund wrapper: a standard 1099 rather than a K-1, with distributions paid quarterly.

Worth knowing

• DFAC Actively managed, so there's no published index to check it against. Holdings and tilts shift at the managers' discretion.
• Dimensional's own DFAU runs a US core equity mandate for 0.12%, a slightly lighter fee for a similar shelf.
• All stocks, all US: the mandate is capital appreciation from equities, so it takes the market's full swings, and cash arrives quarterly.

• HCMT The 1.18% expense ratio sits well above the typical active US equity ETF, and far above broad index-style peers like DFAU and DFAC that charge a fraction of it.
• Leverage magnifies losses as well as gains, and a model that steps to cash can be late in both directions: into the decline and out of the rebound.
• Launched in 2023 and thinly traded, so the live record is short and bid-ask spreads can run wider than the category's heaviest-volume names.

Full DFAC profile⁠

Full HCMT profile⁠