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Tuesday, August 18 at 2:00pm EDT
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Tuesday, August 25 at 2:00pm EDT

Hamilton Canadian Bank
Mean Reversion Index ETF

  • Ticker HCA
  • Yield % 5.03

Now trading: A smarter way to invest in Canadian banks

Toronto skyline evening

Now Trading:

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 TR 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

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 monthly 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 monthly rebalancing.

Performance

  • TICKER HCA
  • NAV $17.38
  • CHANGE -$0.12
  • YIELD 5.03%
  • ASSETS $18.0M

Solactive Canadian Bank Mean Reversion Index vs Equal Weight Canada’s “Big 5” Banks

Value of $100 invested since inception of Solactive Canadian Bank Mean Reversion Index (SOLCBMRT; Jan 1, 1990) vs equal weight portfolio of Canada’s “Big 5” banks, as at June 29, 2020. Source: Bloomberg, Solactive AG

  • Overview
  • Distributions
  • Documents

Top Holdings

As at July 31, 2020

tickernamecountryweight
TDToronto-Dominion BankCanada27%
BNSBank of Nova ScotiaCanada27%
RYRoyal Bank of CanadaCanada27%
BMOBank of MontrealCanada7%
CMCanadian Imperial Bank of CommerceCanada7%
NANational Bank of CanadaCanada7%

Fund Details

 

All Hamilton ETFs are available on the Toronto Stock Exchange (TSX) and can be used in DRIP, RRSP, RRIF, DPSP, RDSP, RESP and TFSA portfolios.
TickerHCA (CAD)
ExchangeToronto Stock Exchange (TSX)
CUSIP40704K100
Inception DateJune 26, 2020
Investment StyleIndex-based, mean reversion strategy
BenchmarkSolactive Canadian Bank Mean Reversion Index
Assets$18.1M CAD*
Yield5.03%*
DistributionsMonthly
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.
Ex-Dividend DatePaidFrequencyAmount
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

ETF Facts

HCA Fact Sheet (2020-05-11) English Français

PROSPECTUS

HCA Prospectus (2020-05-11) English Français

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