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…
Commentary: HUM
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…
U.S. Mid-Caps Continue to Generate Outsized EPS Growth; P/Es at ~20% Discount to 5 Year Average
In Q2 2019, portfolio-weighted EPS[1] grew 12% for the holdings in the Hamilton U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U). The growth in the quarter was nearly 200 bps ahead of the large cap financials at 10.1%[2] and has outgrown its large cap peers every quarter since HFMU.U was launched eight quarters ago. Note to Reader: This Insight includes references to certain Hamilton ETFs that were…
Global Exchanges, E-Brokers and Fin-Tech: Secular and Structural Growth Drivers Abound
We had the opportunity to meet the management of over a dozen global exchanges, e-brokers and fin-tech firms at a recent conference in New York. Global exchanges and e-brokers have benefitted from multiple secular, regulatory and cyclical tailwinds in recent years, which have resulted in strong growth trajectory and robust stock returns. The Hamilton Capital Global Financials Yield ETF (HFY) [1] has ~4% exposure to exchanges and e-brokers,…
Notes from Nashville: Titans of Growth
We recently travelled to Nashville to meet with a small group of Tennessee-based banks, all of which operate in the state capital, and half of which are holdings in the Hamilton Capital Global Bank ETF (ticker: HBG) and the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U). We also had an opportunity to speak with the Nashville Area Chamber of Commerce. It was a great…
U.S. Banks: The Sun’s still shining on Mid-Caps
New York City in May means a lot of traffic, but also beautiful weather and a chance to catch up with a collection of mid-cap banks from across the U.S. in one trip. In all, we sat down with 8 executive teams, primarily from banks operating in the U.S. Sunbelt (i.e., from California to Florida), including 7 owned by the Hamilton Capital U.S. Mid-Cap Financials ETF…
U.S. Bank M&A: 8 Drivers as Described by Industry Giant, Rodgin Cohen
As financial industry specialists and readers of “Too Big to Fail” will know, Rodgin Cohen, a longtime corporate lawyer with Sullivan & Cromwell, is one of the preeminent authorities on banking and financial services M&A in the United States. So, a chance to hear his thoughts on the state of the current M&A environment, as it relates to U.S. banking, was not to be missed. The…
HFMU.U Posts Robust 13% EPS Growth Y/Y; 500 bps Ahead of U.S. Large-Cap Financials
In Q1 2019, the holdings in the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U) recorded year-over-year portfolio-weighted EPS growth of a strong 13%[1], or ~500 bps ahead of the large-caps at 8%[2]. This strong performance was supported by excellent fundamentals including stable margins, steady volume growth and a benign credit environment. Note to Reader: This Insight includes references to certain Hamilton ETFs that were…
Notes from Atlanta: (Growth, M&A) Going Strong
In the almost two years since our last trip to Atlanta, a lot has changed in the banking sector (M&A) and a lot has not (strong growth). The opportunity to speak with 8 banks operating in and around Atlanta – several of which are holdings in the Hamilton Capital Global Bank ETF (HBG) and the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (HFMU.U) – provided some…
U.S. Banks: Mid-Caps vs. JPM, BAC, C & WFC – Higher EPS Growth at Deeper Valuation Discounts
At present, the actively-managed Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (ticker, HFMU.U), represents superior value versus a portfolio of the largest U.S. banks, namely Bank of America, JPMorgan, Citigroup, and Wells Fargo. As the chart below highlights, the portfolio-weighted price-to-earnings (P/E) ratio for HFMU.U is now at a 2.5x discount to its 5 year average, which is meaningfully larger than the 0.9x discount of the four…
HFMU.U Posts 32% EPS Growth Y/Y; 13% Ahead of U.S. Large-Cap Financials
In Q4 2018, the holdings in the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U) recorded year-over-year portfolio-weighted EPS growth of a robust 32%[1], supported by excellent fundamentals including rising margins, solid volume growth and the reduction in the U.S. corporate tax reduction (which added roughly ~18% to this growth rate). As we explained in our insight “U.S. Bank M&A: Implications from the Largest Deal…