Hamilton Canadian Bank
Mean Reversion Index ETF
A smarter way to invest in Canadian banks
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
- 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%
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
| ticker | name | weight |
| NA | National Bank of Canada | 26.6% |
| CM | Canadian Imperial Bank of Commerce | 26.6% |
| RY | Royal Bank of Canada | 26.5% |
| BNS | Bank of Nova Scotia | 7.0% |
| TD | Toronto-Dominion Bank | 6.7% |
| BMO | Bank of Montreal | 6.6% |
| Ticker | HCA |
| Exchange | Toronto Stock Exchange (TSX) |
| CUSIP | 40704K100 |
| Inception Date | June 26, 2020 |
| Investment Style | Index-based, mean reversion strategy |
| Benchmark | Solactive Canadian Bank Mean Reversion Index |
| Assets | $546.5M CAD* |
| Yield | 4.68%* |
| Distributions | Monthly |
| Rebalancing | Quarterly |
| Management Fee | 0.45% |
| Administrator | Horizons ETFs Management (Canada) Inc. |
| Auditor | KPMG LLP |
| Ex-Dividend Date | Paid | Frequency | Amount |
|---|---|---|---|
| 2022-05-30 | 2022-06-10 | Monthly | $0.0925 |
| 2022-04-28 | 2022-05-11 | Monthly | $0.0925 |
| 2022-03-30 | 2022-04-12 | Monthly | $0.0925 |
| 2022-02-25 | 2022-03-10 | Monthly | $0.0925 |
| 2022-01-28 | 2022-02-10 | Monthly | $0.090 |
| 2021-12-30 | 2022-01-13 | Special (non-cash) | $1.80801 |
| 2021-12-30 | 2022-01-13 | Monthly | $0.090 |
| 2021-11-29 | 2021-12-10 | Monthly | $0.085 |
| 2021-10-28 | 2021-11-10 | Monthly | $0.080 |
| 2021-09-28 | 2021-10-13 | Monthly | $0.080 |
| 2021-08-30 | 2021-09-13 | Monthly | $0.080 |
| 2021-07-29 | 2021-08-12 | Monthly | $0.080 |
| 2021-06-29 | 2021-07-13 | Monthly | $0.080 |
| 2021-05-28 | 2021-06-10 | Monthly | $0.080 |
| 2021-04-29 | 2021-05-12 | Special (cash) | $0.100 |
| 2021-04-29 | 2021-05-12 | Monthly | $0.075 |
| 2021-03-30 | 2021-04-13 | Monthly | $0.075 |
| 2021-02-25 | 2021-03-10 | Monthly | $0.072 |
| 2021-01-28 | 2021-02-10 | Monthly | $0.072 |
| 2020-12-30 | 2021-01-13 | Special (cash) | $0.26041 |
| 2020-12-30 | 2021-01-13 | Monthly | $0.072 |
| 2020-11-27 | 2020-12-10 | Monthly | $0.072 |
| 2020-10-29 | 2020-11-12 | Monthly | $0.072 |
| 2020-09-30 | 2020-10-13 | Monthly | $0.070 |
| 2020-08-28 | 2020-09-11 | Monthly | $0.070 |
| 2020-07-30 | 2020-08-13 | Monthly | $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