TORONTO, February 15, 2023 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the results of the special meeting (the “Meeting”) for Hamilton Enhanced Canadian Bank ETF (TSX: HCAL) (the “ETF”) that was held today, February 15, 2023. As previously announced, the Meeting was convened for unitholders to consider and vote upon a proposal to change the investment objective of the ETF (the “Investment…
Insights: Hamilton ETFs
HDIV and HYLD – Working Together (as Shown in One Chart)
Before we talk about HDIV/HYLD, we wanted to highlight the launch of the Hamilton Canadian Financials Yield Maximizer ETF, or HMAX. This covered call ETF is ~75% Canadian banks and has an initial target yield of 13%+, paid monthly. This materially higher yield will be supported by an options coverage ratio of ~50% (higher than most covered call ETFs) and writing options at-the-money (versus out-of-the money).…
HDIV – Adding HMAX, Selling ZWB for Higher Yield and Lower Fees
Our overall goal for the Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) and the Hamilton Enhanced U.S. Covered Call ETF (HYLD, HYLD.U) is to create higher income ETF versions of the S&P/TSX 60 and S&P 500, respectively. As part of these two funds, we have modest cash leverage of 25%, the purpose of which is to help mitigate the yield/return trade-off inherent in covered call strategies,…
Canadian Banks: Opportunities and Risks in 2023
The Canadian banks had a very tough 2022 falling 8.9% – just the 5th decline in the last 20 years, which includes financial crisis years of 2007 and 2008[1] (the sector even rose 3.8% in 2020, despite COVID). The main reason for the decline last year was falling price-to-earnings multiples caused by the market’s concern that global central banks could cause a recession by aggressively raising…
Hamilton ETFs Launches Hamilton Canadian Financials Yield Maximizer ETF
TORONTO, January 20, 2023 – Hamilton Capital Partners Inc. (“Hamilton ETFs“) is pleased to announce the launch of the Hamilton Canadian Financials Yield Maximizer ETF (“HMAX“). HMAX seeks to deliver attractive monthly income, while providing exposure to a market cap-weighted portfolio of Canadian financial services equity securities with an active covered call strategy. HMAX has closed the offering of its initial Class E units. Units of…
Hamilton ETFs Announces Unitholder Meeting for Proposed Objective Change for Hamilton Enhanced Canadian Bank ETF
Toronto, Ontario – January 13, 2023 – Hamilton Capital Partners Inc. (“Hamilton ETFs” or the “Manager”) announced today a proposal to change the investment objective (the “Proposed Change”) of Hamilton Enhanced Canadian Bank ETF (TSX: HCAL) (the “ETF”). Hamilton ETFs is the trustee, manager and portfolio advisor of the ETF. The Proposed Change is as follows: Current Investment Objective Proposed New Investment Objective The investment objective…
U.S. Financials: Mid-Caps Look Attractive, Despite Clouds (4 Reasons to Invest)
The U.S. mid-cap financials held up very well in 2022, in what was a very difficult year for the global financials. Risks that had not been seen for decades – like inflation – have returned, and the market’s fears that rising central bank rates could trigger a recession remain high. This has resulted in significant compression in price-to-earnings multiples as the market anticipates clouds ahead. Yet,…
HBA – Top Performing Financials ETF in Canada (and 5 Reasons to Invest)
In 2022, our blue-chip Hamilton Australian Banks Equal Weight Index ETF (HBA) outperformed its 38 competitor financials ETFs, by rising ~1%, making it the top performing financials ETF in Canada – foreign or domestic[1]. This is the second year in a row that Hamilton ETFs had the top performing financials ETF in Canada[2]. In fact, HBA – which has a yield of 5.8% – was the…
HYLD – Adding JEPQ, Selling TXF for Higher Yield, Added Diversification, Lower Fees
For HDIV and HYLD, we aim to create higher income ETF versions of the S&P/TSX 60 and S&P 500, respectively. Investors in HYLD will recall we recently swapped HBF for JEPI (see HYLD – Adding JEPI, Selling HBF for Higher Yield, Added Diversification, Lower Fees for additional information). Today’s insight discusses our next meaningful adjustment to HYLD’s portfolio, and why we believe it will help better…
HUM – Top Performing U.S. Financials ETF – Again
Our Hamilton U.S. Small/Mid-Cap Financials ETF (HUM, HUM.U) was the top performing U.S. financials ETF in Canada – again[1]. HUM has now outperformed its competitor ETFs over the following periods: since inception[2], in the last two years, full year 2021, and full year 2022. In 2021, it was the top performing financials ETF in Canada – foreign or domestic[3]. In the last two years – which…
HDIV – Outperforms S&P/TSX 60 by 3.7% in 2022 (Adding to SI Outperformance)
The Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) outperformed the S&P/TSX 60 by 3.7% in 2022 (after fees)[1]. Since it was launched on July 19, 2021, HDIV has outperformed the large ‘low fee’ Canadian equity ETFs, like XIU, XIC, ZCN and VCN by over 700 bps (after fees), while paying out significantly higher distributions. As of year-end, HDIV had a yield of 9.68%, paid monthly and…
HFT – Top Performing Fintech ETF by Wide Margin
With its focus on blue-chip firms, the Hamilton Financials Innovation ETF (HFT) outperformed all fintech ETFs in the last two years, including those offered by “high profile” U.S. providers/managers. When it was launched, we explained that HFT would differentiate itself versus its competitors by focusing on “blue-chip” firms focused on financial innovation with higher growth, which were (i) profitable, (ii) had established business models, and importantly…