Hamilton ETFs

Financials: Does COVID-19 Represent a Growth Scare, Credit Event or Crisis?

Since we launched our first ETF in January 2016, there have been four significant macro corrections in four years. None of those large and painful corrections represented a crisis, insofar as the declines did not represent a threat to the solvency of the financial sector, either from a lack of liquidity or the destruction of capital. Rather, they were related to the market rapidly (and, in…

Hamilton ETFs Announces March 2020 Distributions

TORONTO, March 24, 2020 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the regular cash and estimated special distributions for its suite of financial services ETFs, all of which trade on the Toronto Stock Exchange, for the period ended March 31, 2020. Regular cash distributions The ex-dividend date for these distributions is anticipated to be March 30, 2020, for all unitholders of record…

Update: HFA Outperforming the Canadian Banks with Lower Volatility (in Charts)

The Hamilton Australian Financials Yield ETF (HFA) invests in one of the world’s best financial sectors, anchored by some of the world’s best capitalized banks. As evidence of the quality of the Australian financial sector, the Australian banks outperformed the Canadian banks during the global financial crisis. This strong historical performance is underpinned by the fact Australia is a higher performing economy, with GDP growth consistently…

Hamilton ETFs Announces Q1 2020 Monthly Distributions for HCB, HFA

TORONTO, January 24, 2020 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the monthly cash distributions for its Hamilton Canadian Bank Variable-Weight ETF (ticker “HCB”) and Hamilton Australian Financials Yield ETF (ticker “HFA”), both of which trade on the Toronto Stock Exchange, for the first quarter of 2020. The ex-dividend date for each month’s distribution is indicated in the table below (column, “Ex-dividend…

One Chart: When/Where the Canadian Banks Spent US$32 bln on U.S. Banks

All Canadian bank investors know that expansion into the U.S. personal and commercial (“P&C”) banking sector remains the focal point of capital deployment for the Canadian banks. In fact, US banking has been – by far – the largest destination of capital deployment since 2004 (when TD Bank acquired a majority stake in Banknorth), with the Canadian banks having spent a huge US$30 bln. The chart…

One Chart: U.S. Bank M&A Doubles in 2019 (and Why We Expect More)

In the 10+ years since the global financial crisis, deal values in U.S. bank M&A have been slow to reach pre-crisis levels. This is notable since in the nearly 25 years preceding the financial crisis bank M&A was an important theme (particularly between 1995 to 2007) as the chart below highlights. However, in 2019, we saw the first meaningful pick-up, with deal values rising to $59…

Hamilton Global Financials Yield ETF (HFY): Strong Q4 Closes out an Excellent Two Years

For the quarter ended December 31, 2019, the Hamilton Global Financials Yield ETF (HFY) returned 4.1% including distributions. In 2019, HFY returned 21.6%, beating the Canadian banks by 750 bps[1]. It also beat its benchmark, the KBW Financial Sector Dividend Yield Total Return Index (in CAD), which returned 15.0%. HFY is also coming off a strong two years where markets and the financial sector both experienced one large…

Notes from India: All is Well in the World’s Fastest Growing Market

We had the opportunity to meet the management teams of a dozen Indian banks, insurers and asset managers in the financial capital of Mumbai, India last month. Nearly a year since our last meetings with senior bank executives and notwithstanding the recent slowing of economic growth, management teams were optimistic of India’s medium to long-term GDP growth outlook. The optimism was driven by a structural market…

Hamilton ETFs Confirms 2019 Special Distributions

TORONTO, December 27, 2019 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) confirmed today the special distributions for its suite of financial services ETFs for the period ended December 31, 2019. Please note this is an update to the estimated special distributions previously announced on December 20, 2019. The final distributions, which are unchanged from those previously announced, are noted in the table below. The ex-dividend date…

Hamilton ETFs Announces December 2019 and Estimated Special Distributions

TORONTO, December 20, 2019 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the regular cash and estimated special distributions for its suite of financial services ETFs, all of which trade on the Toronto Stock Exchange, for the period ended December 31, 2019. Regular cash distributions The ex-dividend date for these distributions is anticipated to be December 30, 2019, for all unitholders of record…

Canadian Banks: One Chart Showing Higher Volatility Since New PCL Accounting Took Effect

In April we wrote an Insight in which we explained why we believed the volatility of Canadian bank stocks was likely to rise[1]. Specifically, we cited two reasons: (i) rising acquisition risk, and (ii) implementation of the new provision accounting (IFRS 9). Since the first reporting season (February 2018) following the introduction of this new provision accounting, it does appear that the monthly volatility for the…

HFA: Identical Return to the Canadian Banks with Much Lower Volatility (and Lower Correlations)

The Hamilton Australian Financials Yield ETF (HFA) recently celebrated its one-year anniversary. Although the global financials and the Canadian banks experienced significant volatility since its launch in December 2018, HFA has produced consistent monthly returns and dividends as well as identical returns to the Canadian banks, but with much lower volatility (and relatively low correlations). As we have previously written, with nearly identical return/volatility profiles over…

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