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…
Insights: Canada
HFG – Top Performing Global Financials ETF in Canada
Our Hamilton Global Financials ETF (HFG) was the top performing ETF in its category in 2022 and outperformed its domestic competitors and the iShares Global Financials ETF (IXG) over the last two years. During that period, HFG generated a total return of 17.5%, beating every competitor ETF by at least 2.8%[1]. Importantly, not only did HFG outperform its competitor global financials ETFs and the index in…
Market Outlook with Ed Yardeni
On October 13, 2022, we hosted a Market Outlook with Ed Yardeni, moderated by Rob Wessel, in which the prominent Wall Street strategist provided his outlook on U.S. and global equity markets, preferred sectors, the current geopolitical environment, and the implications of changing fiscal/monetary policy. Please register below to access the replay (58 min). Disclaimer: Commissions, management fees and expenses all may be associated with an investment…
Canadian Bank CEO Event with RBC & TD
On June 9, 2022, we hosted a panel discussion on the Canadian banks with Dave McKay and Bharat Masrani, CEOs of Royal Bank and TD Bank, respectively. During the panel discussion, the CEOs discussed their views on a variety of topics, including the current macro environment, domestic banking, housing, consumer debt, and their international platforms. Disclaimer: Commissions, trailing commissions, management fees and expenses all…
Canadian Banks: TD Buys FHN – A Very Strong Fit
After much speculation in recent years about its appetite for additional U.S. bank M&A, TD offered ~US$13.4 bln in cash to buy First Horizon Corporation (FHN)[1], a Tennessee-based regional bank, in late February, almost 15 years since its last “large” U.S. bank acquisition – Commerce Bancorp. In our view, the acquisition offers many strategic benefits given FHN: (i) is an optimal size, adding material scale with…
Video: Market Outlook and Q&A with Ed Yardeni and Rob Wessel
Hamilton ETFs presents a Q&A with prominent Wall Street strategist, Ed Yardeni, moderated by Rob Wessel. Ed has been one of the most influential Wall Street strategists over the last 30 years and is regularly on CNBC. Rob asks Ed for his outlook on the U.S. and global equity markets, inflation, interest rates and, of course, the financials. Disclaimer: Commissions, trailing commissions, management fees and…
Canadian Banks: BMO’s High Risk, High(er) Reward Acquisition of BoW
Bank of Montreal recently announced the acquisition of BNP Paribas’ U.S. retail banking subsidiary, Bank of the West (BoW) for ~C$20 bln – the largest acquisition in Canadian banking history. The transaction is very different from prior acquisitions made by the Canadian banks and is further complicated by the fact that BoW is not publicly traded (wholly owned by BNP), so most Canadian investors have limited…
Financial Post Opinion: Canadian bank dividends are poised to rise — a lot
The Financial Post published our comment on why we believe Canadian bank dividends, in our view, are poised to rise meaningfully over the next few quarters. Click here to read the full article in the Financial Post.
BNN Bloomberg: Canadian bank dividends could rise 25 per cent over the next four quarters
Rob Wessel was on BNN Bloomberg today to discuss our expectations for Canadian bank dividend increases and the performance of our Hamilton Enhanced Canadian Bank ETF (HCAL), which ended its first year as the top performing Canadian bank ETF. Please click here to watch the interview.
Financial Post Opinion: Canada’s big banks are stronger than ever, and should be allowed to raise dividends
The Financial Post published our comment on why we believe OSFI should allow dividend increases now as there are no policy reasons to support the ongoing moratorium. Click here to read the full article in the Financial Post.
BNN Bloomberg: Canadian banks earnings season and No-Fee Trading
Rob Wessel was on BNN Bloomberg today to discuss the upcoming Canadian banks earnings season and no-fee trading, as well as the Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV), that launched in July 2021. Click here to watch the interview.
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.…