Commentary: HFG

Global Financials: The Most Attractive/Important Investment Themes in 2021

Hamilton Global Financials ETF (HFG), which launched on June 26, 2020, is focused on investing in high quality global financial stocks with strong balance sheets, diversified income streams and exposure to favorable, medium- and long-term cyclical and secular trends. This focus aims to provide Canadian investors with diversified exposure to the most attractive themes within the global financial sector while maintaining a volatility profile not materially…

Hamilton Global Financials ETF (HFG): Merging Two Global ETFs with Material Outperformance

On June 29, 2020, the Hamilton Global Financials ETF will begin trading on the TSX under the ticker HFG. This new ETF will have a lower management fee and will be the result of a merger between the Hamilton Global Bank ETF (HBG) and the Hamilton Global Financials Yield ETF (HFY) – both of which have experienced material outperformance. Since its launch in January 2016, the Hamilton…

Hamilton ETFs Announces Proposed Merger of Hamilton Global Financials Yield ETF into Hamilton Global Financials ETF

Toronto, Ontario – April 28, 2020 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the next phase of enhancements to its investment fund platform. Subject to all required unitholder and regulatory approvals, Hamilton ETFs is proposing to merge (the “Merger”) Hamilton Global Financials Yield ETF (TSX: HFY, the “Terminating Fund”) into Hamilton Global Financials ETF (proposed TSX ticker: HFG, the “Continuing Fund”). If…

Hamilton ETFs Announces Proposed Merger of Hamilton Global Bank ETF into Hamilton Global Financials ETF

Toronto, Ontario – April 28, 2020 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the next phase of enhancements to its investment fund platform. Subject to all required unitholder and regulatory approvals, Hamilton ETFs is proposing to merge (the “Merger”) Hamilton Global Bank ETF (TSX: HBG, the “Terminating Fund”) into Hamilton Global Financials ETF (proposed TSX ticker: HFG, the “Continuing Fund”). If all…

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%. Note to Reader: This Insight includes references to certain Hamilton ETFs that were active at the time of writing.…

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…

U.S. Bank M&A: Another Accretive MOE, Another Positive Market Reaction

On Monday, this year’s third (sizable) U.S. bank merger-of-equals (“MOE”) was announced, continuing a trend we expected following similar transactions early in 2019. We have previously written that after a multi-year period of muted merger activity that U.S. bank consolidation – particularly among mid-cap banks – was poised to accelerate. We have cited this theme as impacting the U.S. mid-cap financials sector generally and the banking…

13th Straight Quarter of Double-Digit EPS Growth; Valuations at Five-Year Lows

Hamilton Global Bank ETF (ticker: HBG) holdings reported portfolio-weighted EPS growth of 10% Y/Y[1], driven by strong U.S. banks fundamentals (~60% weight) and a diversified portfolio of global banks (~40% weight). This is the 13th consecutive quarter of double-digit portfolio-weighted EPS growth for HBG. The strong growth was led by U.S. mid-caps and bank holdings in India, Norway and select European countries. Note to Reader: This…

Notes from Dallas: Big Things Happen Here

We recently returned from a visit to Dallas (our third in four years) where we met with eight banks operating in the Lone Star State. Five of the eight have footprints beyond Texas, and hence offered a fuller picture of the attractiveness of the Texas economy and business outlook (hint, there’s a reason they’re in Texas). Of the banks we met, three are holdings in our…

A Day in the Life of the U.S. Financials – Notes from New York

Three days in New York gave us the opportunity to meet with a broad-based group of financial services companies, largely based in the U.S., but several operating globally. Included in the mix were several holdings of the Hamilton Global Financials Yield ETF (ticker: HFY) and the Hamilton U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U), both of which invest in the broader financials services sector. The former…

What U.S. Investment Bankers and Banks are Saying about M&A

At Hamilton ETFs, the prospects for M&A is one the supporting factors for our investment thesis for the U.S. mid-cap banks, in which both the Hamilton Global Bank ETF (ticker: HBG) and Hamilton U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U) are heavily-weighted[1]. Note to Reader: This Insight includes references to certain Hamilton ETFs that were active at the time of writing. On June 29, 2020, the…

Notes from Washington, DC – Investigating One of the Wealthiest MSAs in the Country

We recently had the opportunity to meet senior management of over a dozen U.S. mid-cap banks headquartered in the Washington, DC area. Anchored by the capital city, the Washington-Arlington-Alexandria MSA (Washington MSA) is the sixth largest U.S. MSA ([1]) with real GDP of US$507 bln ([2]) and a population of 6.3 mln. Importantly, it is also the second wealthiest MSA ([3]) in the entire country, supported…

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