Insights: Canada

Fintech/Cdn Banks: Can Standalone Digital Banks Disrupt the Incumbents?

In the coming weeks, we will publish a series of insights on financial innovation discussing several powerful secular trends relating to financial technology/innovation and its impact on the global financial services sector. We will also review how these trends influence the investment strategy of the Hamilton Financials Innovation ETF (HFT). We launched HFT in 2020 to give investors exposure to these fast-growing themes, within “established” fintech…

Canadian Banks: Q4-2020 Takeaways – Recovery Has Started; What’s Next?

In late October, with earnings season approaching, we wrote an insight entitled, “Canadian Banks: Will Q4 Be a ‘Clean-up’ Quarter?”. In that note, we predicted the banks would take steps to accelerate their return to normalized earnings by: (i) building reserves against performing loans (by to $2-$3 bln, to ~$25 bln) in order to prepare for defaults coming in 2021, and (ii) pulling forward expenses, possibly…

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…

BNN Bloomberg: HSBC Canada reports negative loan loss provisions in encouraging sign for Canadian banks

HSBC Bank Canada sent an encouraging signal for Q3 earnings of Canadian banks by releasing $2 mln of reserves for loan losses. Rob Wessel, Managing Partner of Hamilton ETFs, was quoted by BNN Bloomberg as saying “negative provisions are the likely outcome once the Canadian banks begin to reflect their changing/improving economic assumptions in their reserves.” Click here to read the full article.    

Canadian Banks: Will Q4 be a ‘Clean-up’ Quarter?

Note to Reader: We are pleased to announce the launch of the Hamilton Canadian Bank 1.25x Leverage ETF (HCAL), which began trading on the TSX on Thursday, October 15th and has a current yield of ~6.5%. HCAL invests 125% of NAV into the Hamilton Canadian Bank Mean Reversion ETF (HCA) using cash borrowed from a Canadian financial institution. The underlying – and unlevered – HCA seeks…

Hamilton Canadian Bank 1.25x Leverage ETF (HCAL) – Get More from the Canadian Banks

We are excited to announce the launch of the Hamilton Canadian Bank 1.25x Leverage ETF, which will begin trading on the TSX under the ticker HCAL on Thursday, October 15th. HCAL will provide exposure to Canada’s ‘big 6’ banks, with enhanced yield and return potential, with distributions paid monthly. HCAL builds on our innovative Canadian Bank mean reversion strategy. Specifically, HCAL’s investment objective is to replicate, before…

Globe & Mail on HCAL: If the worst is over for Canadian bank stocks, here’s a strategy

The Globe & Mail was quick to cover our latest ETF, the Hamilton Canadian Bank 1.25x Leverage ETF (HCAL), launching on October 15, 2020. The article below explains how a mean-reversion strategy with a modest 25% of leverage can produce bigger gains while boosting the dividend to more than 6%. If the worst is over for Canadian bank stocks, here’s a strategy The Globe and Mail (Ontario Edition)…

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