The short interest in the Direxion HCM Tactical Enhanced U.S. ETF (NYSEARCA:HCMT) increased significantly in December, rising by 236.4% from the previous month. By December 15, 2023, the total short interest reached 4,780 shares, up from 1,421 shares reported on November 30. This surge indicates heightened investor speculation regarding the ETF’s performance.
The average daily trading volume for HCMT stands at 62,038 shares, giving the ETF a days-to-cover ratio of 0.1 days. Currently, short sales account for 0.0% of the company’s outstanding shares, suggesting that there is minimal short-selling pressure relative to the overall share availability.
Institutional Investment Activity
Several institutional investors have adjusted their positions in the Direxion HCM Tactical Enhanced U.S. ETF. Notably, Howard Capital Management Inc. increased its holdings by 3.7% during the third quarter, now owning 9,559,154 shares valued at approximately $358.37 million. This increase included the acquisition of an additional 344,883 shares.
Similarly, Orion Portfolio Solutions LLC raised its position by 1.5%, bringing its total to 2,266,959 shares worth around $84.99 million after acquiring an additional 32,422 shares. Other firms like Wealth Watch Advisors Inc. and Discipline Wealth Solutions LLC also reported increases in their stakes, indicating a broader interest in the ETF.
Current Market Performance
As of midday trading on Friday, December 15, 2023, shares of the Direxion HCM Tactical Enhanced U.S. ETF traded down by $0.01 to reach $39.63. A total of 16,840 shares changed hands, below the average trading volume of 71,944.
The ETF has a market capitalization of $596.43 million, a price-to-earnings (P/E) ratio of 21.26, and a beta of 1.83, suggesting a higher volatility compared to the broader market. The fund’s performance is further characterized by a 50-day moving average of $38.72 and a 200-day moving average of $35.92. Over the past year, the ETF has fluctuated between a low of $24.58 and a high of $40.92.
The Direxion HCM Tactical Enhanced U.S. ETF, launched on June 22, 2023, is an actively managed fund that invests primarily in total market equities. It strategically shifts between a 200% leveraged position in U.S. equities and 100% in cash or cash equivalents based on proprietary market indicators.
As the market continues to evolve, investor interest in the Direxion HCM Tactical Enhanced U.S. ETF reflects broader trends within the equity landscape, with institutional activity suggesting confidence in its strategic approach.
