Direxion HCM Tactical Enhanced ETF Leads List of Worst-Performing Stock ETFs for April 2025

By Frank Lee
Published: May 6, 2025

April 2025 proved to be a challenging month for several stock exchange-traded funds (ETFs), which are typically lauded for their cost efficiency and convenience. According to recent data sourced from Morningstar Direct, the Direxion HCM Tactical Enhanced US Equity Strategy ETF and Simplify Volatility Premium ETF stood out as the starkest underperformers during the month.

Overview of the Worst Performers

In an analysis focused on U.S. equity ETFs, a total of 10 funds were identified as the worst performers for April. This list reflects the challenges many funds faced amid a fluctuating market environment. Notably, five of these funds belonged to the small value category, which saw an overall decline of 4.39% during the month.

Below is the complete list of the 10 worst-performing stock ETFs for April 2025:

1. Direxion HCM Tactical Enhanced US Equity Strategy ETF (HCMT)

   • Performance: -12.28%
   • Expense Ratio: 1.17%
   • Morningstar Rating: N/A

2. Simplify Volatility Premium ETF (SVOL)

   • Performance: -7.72%
   • Expense Ratio: 0.72%
   • Morningstar Rating: 2 stars

3. Schwab US Dividend Equity ETF (SCHD)

   • Performance: -7.55%
   • Expense Ratio: 0.06%
   • Morningstar Rating: 4 stars

4. First Trust Small Cap Value AlphaDEX Fund (FYT)

   • Performance: -6.72%
   • Expense Ratio: 0.72%
   • Morningstar Rating: 1 star

5. Invesco S&P SmallCap 600 Pure Value ETF (RZV)

   • Performance: -6.48%
   • Expense Ratio: 0.35%
   • Morningstar Rating: 2 stars

6. Invesco S&P Ultra Dividend Revenue ETF (RDIV)

   • Performance: -6.31%
   • Expense Ratio: 0.39%
   • Morningstar Rating: 3 stars

7. WisdomTree US SmallCap Quality Dividend Growth Fund (DGRS)

   • Performance: -6.31%
   • Expense Ratio: 0.38%
   • Morningstar Rating: 3 stars

8. VictoryShares Small Cap Free Cash Flow ETF (SFLO)

   • Performance: -6.25%
   • Expense Ratio: 0.49%
   • Morningstar Rating: N/A

9. VictoryShares US Small Cap High Dividend Volatility Weighted ETF (CSB)

   • Performance: -5.98%
   • Expense Ratio: 0.35%
   • Morningstar Rating: 3 stars

10. First Trust Mid Cap Value AlphaDEX Fund (FNK)

    • Performance: -5.75%
    • Expense Ratio: 0.70%
    • Morningstar Rating: 2 stars

Notable Highlights

The Direxion HCM Tactical Enhanced US Equity Strategy ETF, with around $360 million in total assets, experienced the steepest decline, suffering a loss of 12.28%. This ETF has struggled since its launch in June 2023, with a reported 3.06% drop over the past year, placing it in the 99th percentile of its category.

The Simplify Volatility Premium ETF, holding approximately $956 million, registered the second-largest loss of 7.72%, marking a 12.41% decline over the past year and positioning it at the bottom of its category.

Conversely, ETFs such as the Schwab US Dividend Equity ETF, though ranked third in losses, had a relatively robust expense ratio of just 0.06% and still managed a 4.57% gain over the past year.

Understanding ETFs

Exchange-traded funds (ETFs) are unique investment vehicles that allow investors to trade shares throughout the day, similar to individual stocks. ETFs typically aim to mirror the performance of specific indexes but have increasingly diversified into actively managed strategies in recent years. They provide low-cost and tax-efficient avenues for investors to engage with various asset classes, including stocks, bonds, and commodities.

Conclusion

As investors navigate through various market conditions, the performance of ETFs, particularly those under the scrutiny of the current financial climate, reflects the broader challenges faced by the market. For those interested in exploring more about the best-performing ETFs, further resources are available through Morningstar and other financial advisory platforms.

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