Hamilton Canadian Bank
Mean Reversion Index ETF
Launching soon: A smarter way to invest in Canadian banks
Exposure to Canada’s “Big Six” banks using a mean reversion strategy with monthly rebalancing
Potential for higher long-term returns and lower downside volatility
Outperformance of the Solactive Canadian Bank Mean Reversion Index vs. equal weight Cdn bank portfolio has been highest during credit downturns
Benefits of mean reversion have been greatest in periods of market turbulence relative to an equal weight portfolio of Canadian banks
What is Mean-Reversion?
Mean reversion is one of the most popular themes in Canadian bank investing, given the individual Canadian banks have tended to perform similarly over time.
HCA attempts to take advantage of these tendencies by rebalancing the portfolio monthly and investing 80% of the portfolio in the 3 banks which have recently underperformed, and 20% in the 3 banks which have outperformed.
The fund is designed to closely track the returns of the Solactive Canadian Bank Mean Reversion Index, which applies a variable-weight, mean reversion trading strategy to Canada’s “Big Six” banks, with monthly rebalancing.
We expect HCA to begin trading on the Toronto Stock Exchange in late June 2020.
Check back for more information.
|Exchange||Toronto Stock Exchange (TSX)|
|Investment Style||Index-based, mean reversion strategy|
|Benchmark||Solactive Canadian Bank Mean Reversion Index|
|Administrator||Horizons ETFs Management (Canada) Inc.|