Insights & Commentary

Canadian Banks: Will Q4 be a ‘Clean-up’ Quarter?

Note to Reader: We are pleased to announce the launch of the Hamilton Enhanced Canadian Bank ETF (HCAL), which began trading on the TSX on Thursday, October 15th and has a current yield of ~6.5%. HCAL invests 125% of NAV into the Hamilton Canadian Bank Mean Reversion ETF (HCA) using cash borrowed from a Canadian financial institution. The underlying – and unlevered – HCA seeks to…

Hamilton ETFs Launches Hamilton Canadian Bank 1.25x Leverage ETF

TORONTO, October 14, 2020 – Hamilton Capital Partners Inc. (“Hamilton ETFs“) is pleased to announce the launch of the Hamilton Canadian Bank 1.25x Leverage ETF (“HCAL“). HCAL seeks to replicate, to the extent reasonably possible and before the deduction of fees and expenses, a 1.25 times multiple of the Solactive Canadian Bank Mean Reversion Index. HCAL has closed the offering of its initial units. Units of…

Hamilton Enhanced Canadian Bank ETF (HCAL) – Get More from the Canadian Banks

We are excited to announce the launch of the Hamilton Enhanced Canadian Bank ETF, which will begin trading on the TSX under the ticker HCAL on Thursday, October 15th. HCAL will provide exposure to Canada’s ‘big 6’ banks, with enhanced yield and return potential, with distributions paid monthly. HCAL builds on our innovative Canadian Bank mean reversion strategy. Specifically, HCAL’s investment objective is to replicate, before expenses,…

Australian Banks: Entering Recovery Stage of Credit Cycle (in 6 Charts)

In this insight, we share 6 charts that, in our view, indicate that the Australian banking sector – one of the world’s strongest – has entered the recovery stage of the credit cycle, which should be supportive of share prices. In the past, we have described the Canadian and Australian banking sectors as being akin to fraternal twins given their significant similarities, as well as those…

Australian Banks: Outperformance vs Canada (akin to Canadian Bank #4)

In this insight we review the performance of the Australian banks versus the Canadian banks and discuss why Canadian bank investors should consider the Hamilton Australian Bank Equal-Weight Index ETF (ticker: HBA). Launched on June 29, 2020, HBA aims to replicate (net of fees) the performance of the Solactive Australian Bank Equal-Weight Index TR (SOLBAEWT) and is currency hedged. The SOLBAEWT index, which tracks the performance…

Hamilton Global Financials ETF (HFG): Merging Two Global ETFs with Material Outperformance

On June 29, 2020, the Hamilton Global Financials ETF will begin trading on the TSX under the ticker HFG. This new ETF will have a lower management fee and will be the result of a merger between the Hamilton Global Bank ETF (HBG) and the Hamilton Global Financials Yield ETF (HFY) – both of which have experienced material outperformance. Since its launch in January 2016, the Hamilton…

Canadian Banks: Outperformance from Mean Reversion (in 7 Charts)

As all Canadian investors know, the stock prices of the Canadian banks are highly correlated, and the individual banks have generated similar returns over long periods of time. Over the past several decades, the Canadian banks that have underperformed tended to catch up to those that outperformed, and vice versa – i.e., their performance was “mean reverting”. In this Insight, we discuss these mean reversion tendencies…

Hamilton ETFs Launches Hamilton Financials Innovation ETF

TORONTO, June 1, 2020 – Hamilton Capital Partners Inc. (“Hamilton ETFs“) is pleased to announce the launch of the Hamilton Financials Innovation ETF (“HFT“). HFT seeks long-term returns from an actively managed equity portfolio by investing in companies located anywhere in the world that are innovating and supporting the financial services sector primarily through the use of data and technology. HFT has closed the offering of…

Canadian Banks: Three Vulnerable Loan Exposures (in Charts)

In our Insight, Financials: Does COVID-19 Represent a Growth Scare, Credit Event or Crisis (March 25, 2020), we discussed the implications of the global economy moving swiftly into an undetermined period of negative economic growth. For the banks, we fully expect the result will be a credit cycle. Although the peak of losses and the duration are very much unknown, we believe this credit cycle is likely…

One Chart: Australia Appears to be Flattening the Curve Ahead of Other Countries (including Canada)

In our Insight, “Financials: Does COVID-19 Represent a Growth Scare, Credit Event or Crisis” (March 25, 2020), we discussed the implications of the global economy moving swiftly into an undetermined period of negative economic growth which has caused stocks to fall sharply. One critical variable for every country will be when they can restart their economies, which will be heavily influenced by each country’s ability to…

Financials: Does COVID-19 Represent a Growth Scare, Credit Event or Crisis?

Since we launched our first ETF in January 2016, there have been four significant macro corrections in four years. None of those large and painful corrections represented a crisis, insofar as the declines did not represent a threat to the solvency of the financial sector, either from a lack of liquidity or the destruction of capital. Rather, they were related to the market rapidly (and, in…

Update: HFA Outperforming the Canadian Banks with Lower Volatility (in Charts)

The Hamilton Australian Financials Yield ETF (HFA) invests in one of the world’s best financial sectors, anchored by some of the world’s best capitalized banks. As evidence of the quality of the Australian financial sector, the Australian banks outperformed the Canadian banks during the global financial crisis. This strong historical performance is underpinned by the fact Australia is a higher performing economy, with GDP growth consistently…

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