During 2021, the Hamilton Enhanced Canadian Bank ETF (HCAL) and the Hamilton Canadian Bank Mean Reversion Index ETF (HCA) outperformed all other Canadian bank ETFs, rising 51.5% and 40.3%, respectively. Entering last year, we forecast the Canadian banks would have a very strong year (see our insight “Q4-2020 Takeaways – Recovery Has Started” and our video “Three Potential Catalysts for 2021”[1]). HCAL outperformed all strategies by…
Insights: Hamilton ETFs
HFT – ‘Blue Chip’ Fintech ETF with Peer Leading Absolute and Risk-Adjusted Returns
We believe Canadian investors should have at least a 5% weighting to ‘blue-chip’ financial innovation. The category has attractive growth prospects (secular EPS growth over 25%), high ROEs, and provides valuable diversification to core Canadian financial holdings (especially banks). In June 2020, we launched the Hamilton Financials Innovation ETF (HFT) for investors seeking exposure to higher growth secular themes but are concerned about downside volatility –…
Canadian Banks: Five Possible Drivers in 2022 (Q4 2021 in Charts)
HCAL Ends Year #1 as the Top Performing Canadian Bank ETF; Hamilton ETF AUM Exceeds $1 bln Before we discuss our outlook for 2022, we wanted to highlight that the Hamilton Enhanced Canadian Bank ETF (HCAL), the top performing bank ETF since its launch in October 2020. Year-to-date (2021), HCAL is outperforming equal weight/yield weighted strategies by 9% and covered call strategies by 14-17%. As of November…
Australian Banks: Robust Earnings and Large Capital Return
A strong recovery of the Australian economy is underway as evidenced by the solid earnings growth seen at the Australian banks in their most recent reporting season. In this insight, we discuss the positive trends impacting the sector. Specifically, we elaborate on the recent operating results (both earnings drivers and capital returns), and other positive trends including economic growth supported by further reopening as well as…
Canadian Banks: How High Can Dividends Go? (and HCAL Outperforms)
Canadian bank dividends, in our view, are poised to rise – a lot. In August, before Q3 earnings season, we argued there was no policy rationale for the continuing moratorium on dividend increases (see “Canadian Banks: Why OSFI Should Lift its Dividend Cap Now”). At the time, earnings and capital were already at all time highs. Moreover, the banks had set aside an enormous ~$21.4 bln…
HCAL Ends First Year as Top Performing Canadian Bank ETF
TORONTO, October 19, 2021 – Hamilton Capital Partners Inc. (“Hamilton ETFs“) is pleased to announce that in its first year ended October 14, 2021, the Hamilton Enhanced Canadian Bank ETF (“HCAL“) had a total return of 60.4%, making it the top performing Canadian bank ETF over this period[1]. HCAL is also one of the highest yielding Canadian bank ETFs with a current indicated yield of 4.95%,…
Canadian Banks: Record Earnings/Capital; Still in Catalyst #2 (Q3 2021 in Charts)
Q3 earnings trends for the Canadian banks were again strong with record earnings and capital levels, while the ‘three catalyst’ investment thesis – normalization of profits, reserve releases and higher margins – we laid out for the sector in February continues to play out almost exactly as predicted[1]. We believe the banks are still supported by Catalyst #2. Before we discuss Canadian bank results in more…
Canadian Banks: Why OSFI Should Lift its Dividend Cap Now
Before we discuss why the Canadian regulator OSFI should lift its cap on dividends as soon as possible, we would like to highlight the recent launch of the Hamilton Enhanced Multi-Sector Covered Call ETF (ticker: HDIV), an equal weight portfolio of seven established covered call ETFs with a sector mix broadly consistent with that of the S&P/TSX 60. HDIV utilizes modest 25% cash leverage to support…
Globe & Mail on HDIV: Canadian ETF tests conventions with high yield on a portfolio of quality stocks
The Globe & Mail wrote about our latest ETF, the Hamilton Enhanced Multi-Sector Covered Call ETF (ticker: HDIV), which started trading on July 21, 2021. The article explains how the strategy is designed to broadly mimic the S&P/TSX 60, yet offer a higher yield through more exposure to higher-yielding sectors from a portfolio of quality companies. New Canadian ETF offers 8.5% yield on a portfolio of quality stocks…
Advisor’s Edge: Hamilton launches multi-sector covered call ETF (HDIV)
Advisor’s Edge wrote about our newly launched Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV). To read the full article, click here.
Hamilton ETFs Launches Hamilton Enhanced Multi-Sector Covered Call ETF
TORONTO, July 20, 2021 – Hamilton Capital Partners Inc. (“Hamilton ETFs“) is pleased to announce the launch of the Hamilton Enhanced Multi-Sector Covered Call ETF (“HDIV“). HDIV seeks to replicate, to the extent reasonably possible and before the deduction of fees and expenses, a 1.25 times multiple of the Solactive Multi-Sector Covered Call ETFs Index. HDIV has closed the offering of its initial units. Units of…
Canadian Banks: Reserve Releases Dominate Results; Q2-21 Takeaways (in Charts)
Reserve releases featured prominently in Q2 earnings results for the Canadian banks, another step forward for the sector in its ongoing credit recovery and just one of the positive catalysts we previously identified for Canadian bank stocks in 2021. In our October webcast, “Canadian Banks: Credit Cycle is (Basically) Over”[1], we outlined our reasoning that a credit-driven recovery in Canadian bank earnings and stocks was beginning.…