Hamilton Canadian Bank
Mean Reversion Index ETF

  • Ticker HCA
  • Yield % 4.68

A smarter way to invest in Canadian banks

Canadian Banks HCA

Highlights:

Outperformed covered call and equal weight strategies by ~950bps and ~100bps respectively in 2021 *As at December 31, 2021

+30.72% annualized return since inception *As at April 29, 2022

Canadian bank ETF with exposure to the “Big Six” banks using a mean reversion strategy with quarterly rebalancing

Potential for higher long-term returns and lower downside volatility

Monthly distributions

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 quarterly and investing 80% of the portfolio in the 3 banks which have recently underperformed, and 20% in the 3 banks which have outperformed.

FUND OBJECTIVE

 

The fund is designed to closely track the returns of the Solactive Canadian Bank Mean Reversion Index TR, which applies a variable-weight, mean reversion trading strategy to Canada’s “Big Six” banks, with quarterly rebalancing.

The Solactive Canadian Bank Mean Reversion Index TR has outperformed an equal weight portfolio of Canada’s banks

Performance

  • TICKER HCA
  • NAV $23.84
  • CHANGE +$0.37
  • YIELD *

    As at April 29, 2022

    4.68%
  • ASSETS $546.5M

Annualized Returns

As at April 29, 2022

  • ticker 0.00%
  • 1 month -6.25%
  • 3 months -9.63%
  • 6 months 1.29%
  • year to date -4.40%
  • 1 year 13.09%
  • inception* 30.72%
  • as of date 202200.00%

Growth of $10,000 Invested

As at April 29, 2022

Solactive Canadian Bank Mean Reversion Index TR vs Equal Weight Canadian Banks

Value of $100 invested since inception of Solactive Canadian Bank Mean Reversion Index TR (SOLCBMRT; Jan 1, 1990) vs equal weight portfolio of Canada’s “Big 5” banks, as at March 31, 2022. Source: Bloomberg, Solactive AG

  • Overview
  • Distributions
  • Documents

Holdings

As at April 29, 2022

tickernameweight
NANational Bank of Canada26.6%
CMCanadian Imperial Bank of Commerce26.6%
RYRoyal Bank of Canada26.5%
BNSBank of Nova Scotia7.0%
TDToronto-Dominion Bank6.7%
BMOBank of Montreal6.6%

Fund Details

 

All Hamilton ETFs are available for purchase on the Toronto Stock Exchange (TSX), and can be used in RRSP, RRIF, DPSP, RDSP, RESP and TFSA portfolios. To set up a DRIP, please contact your individual brokerage.
TickerHCA
ExchangeToronto Stock Exchange (TSX)
CUSIP40704K100
Inception DateJune 26, 2020
Investment StyleIndex-based, mean reversion strategy
BenchmarkSolactive Canadian Bank Mean Reversion Index
Assets$546.5M CAD*
Yield4.68%*
DistributionsMonthly
RebalancingQuarterly
Management Fee0.45%
AdministratorHorizons ETFs Management (Canada) Inc.
AuditorKPMG LLP

Distributions

HCA distributions are paid monthly in cash, or if the unitholder has enrolled in the dividend reinvestment plan (DRIP), reinvested in additional units of the ETF. The annual tax information for 2021 is available here.
Ex-Dividend DatePaidFrequencyAmount
2022-05-302022-06-10Monthly$0.0925
2022-04-282022-05-11Monthly$0.0925
2022-03-302022-04-12Monthly$0.0925
2022-02-252022-03-10Monthly$0.0925
2022-01-282022-02-10Monthly$0.090
2021-12-302022-01-13Special (non-cash)$1.80801
2021-12-302022-01-13Monthly$0.090
2021-11-292021-12-10Monthly$0.085
2021-10-282021-11-10Monthly$0.080
2021-09-282021-10-13Monthly$0.080
2021-08-302021-09-13Monthly$0.080
2021-07-292021-08-12Monthly$0.080
2021-06-292021-07-13Monthly$0.080
2021-05-282021-06-10Monthly$0.080
2021-04-292021-05-12Special (cash)$0.100
2021-04-292021-05-12Monthly$0.075
2021-03-302021-04-13Monthly$0.075
2021-02-252021-03-10Monthly$0.072
2021-01-282021-02-10Monthly$0.072
2020-12-302021-01-13Special (cash)$0.26041
2020-12-302021-01-13Monthly$0.072
2020-11-272020-12-10Monthly$0.072
2020-10-292020-11-12Monthly$0.072
2020-09-302020-10-13Monthly$0.070
2020-08-282020-09-11Monthly$0.070
2020-07-302020-08-13Monthly$0.070

You can view public filings for the Hamilton Canadian Bank Mean Reversion Index ETF on SEDAR.

Press Releases

View the latest HCA Press Releases

Fact Sheet

HCA Fact Sheet (2022-04-29) English Français

ETF Facts

HCA ETF Facts (2022-05-18) English Français

Prospectus

HCA Prospectus (2022-05-18) English Français

Financial Statements

Interim Financial Statements (2021-06-30) English Français
Annual Financial Statements (2021-12-31) English Français

Latest Portfolio Summary

Q1 2022 Portfolio Summary (2022-03-31) Download

Independent Review Committee

2021 Annual Report to Securityholders (2022-03-21) Download

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