Despite a very challenging year for global financials/banks, the Hamilton Capital Global Bank ETF (HBG) and Hamilton Capital Global Financials Yield ETF (HFY) are both outperforming their benchmarks, as well as virtually all relevant country indices year-to-date. In fact, with concerns over global trade, emerging market volatility, European politics, and the shape of the yield curve, virtually all relevant global financials and bank indices are down…
Hamilton ETFs
HFMU.U: Much Lower Drawdowns than U.S. Large-Cap Financials
In our September 4th, 2018 ETF Manager Comment “HFMU.U Outperforms U.S. Large-Cap Financials in Year #1 Rising 15%, Despite Two Formidable Obstacles” we discussed the performance of the ETF in its first year. However, as a follow up, we thought it would be helpful to address risk and volatility of returns. Using monthly data, the U.S. Large-Cap Financials index declined 5 straight months (February to June)…
Hamilton Capital Launches Hamilton Capital Canadian Bank Dynamic-Weight ETF
TORONTO, September 28, 2018 – Hamilton Capital Partners Inc. (“Hamilton Capital“) is pleased to announce the launch of the Hamilton Capital Canadian Bank Dynamic-Weight ETF (“HCB“), Canada’s first Canadian bank “mean reversion” ETF. HCB seeks long-term returns consisting of long-term capital growth as well as regular monthly dividend income by investing in an equity portfolio of Canadian banks. HCB will employ a rules-based “mean reversion” portfolio…
Canadian Banks: Mean-Reversion Strategy for Higher Returns/Lower Risk
On October 2nd, 2018, Hamilton Capital will be launching the Hamilton Capital Canadian Bank Variable-Weight ETF (HCB). This ETF will consist of the Big-6 Canadian banks, rebalanced monthly to capitalize on the long-term mean reversion tendencies of the sector. Specifically, it will overweight the three most oversold banks from the prior month (to ~80%) and underweight the three most overbought banks (to ~20%). Please note: The…
HFMU.U Outperforms U.S. Large-Cap Financials in Year #1
Up ~15%, Despite Two Formidable Obstacles Our Hamilton Capital U.S. Mid-Cap Financials ETF (USD) rose 15% in its first year, outperforming the U.S. large-cap financials index (S5FINL Index). The sheer earnings growth of HFMU.U holdings supported this outperformance despite two very formidable obstacles, both of which we believe are unlikely to recur. Of importance, HFMU.U achieved this outperformance with significantly lower drawdowns and volatility. What were these…
HFMU.U Posts 35% EPS Growth Y/Y
900 bps Ahead of U.S. Large-Cap Financials In Q2-2018, the holdings in the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (HFMU.U) have recorded year-over-year portfolio-weighted EPS growth of a robust 35%, a full 900 bps ahead of the 26% EPS growth reported by the U.S. large-cap financials index. This is the fourth consecutive quarter since its inception that earnings for HFMU.U’s holdings have outpaced the U.S.…
HBG: Up ~4% YTD Despite Global Sea of Red
U.S. Bank Portfolio Outgrows U.S. Bank Peers for the 9th Consecutive Quarter Hamilton Capital Global Bank ETF (HBG) continues to enjoy material outperformance with comparatively low drawdowns. Since inception, it has reported a 17% annualized return and is 20.3% ahead of the global bank index (in CAD). Year-to-date, HBG is up 3.9% which compares to a decline in the global bank index of ~2% (in CAD)…
Hamilton Capital Announces Launch of Canadian Dollar Units of Hamilton Capital U.S. Mid-Cap Financials ETF (USD) and June 2018 Distributions
TORONTO, June 22, 2018 – Hamilton Capital Partners Inc. (“Hamilton Capital”) is pleased to announce that Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (the “ETF”) will be available for purchase in Canadian dollars. Subject to the approval of the Toronto Stock Exchange (“TSX”), it is expected that Units of the ETF will begin trading on or about June 25, 2018 on the TSX in Canadian dollars…
Notes from Texas: Lone Star Shines Bright
On a recent investor roadshow to Texas, we had the opportunity to meet the top management of ten Texas headquartered U.S. banks. The Texas economy is booming (annualized real GDP grew +5.2% yoy in Q4/17 making it the fastest growing economy of all 50 U.S. states) driven by a robust recovery in the energy sector and strong labor market trends in an increasingly diversified economy. With…
Global Exchanges and E-Brokers: favourable secular and cyclical themes
We met the management of over a dozen global exchanges and e-brokers at a recent conference in New York. Global exchanges and e-brokers have benefitted from secular, regulatory and cyclical tailwinds over the past decade, which has resulted in robust earnings growth and driven strong stock outperformance. The Hamilton Capital Global Financials Yield ETF (HFY) which is outperforming its benchmark by 270 bps since inception and has a…
U.S. Banks: 3 Deals in 3 Weeks. Will M&A Accelerate Post-Dodd-Frank?
Hamilton Capital ETFs continue to benefit from material outperformance and substantial AUM growth. In this note, we discuss U.S. bank M&A and ask the question: will successful passage of the Dodd-Frank rollback bill result in an acceleration of sector consolidation? Last week, on May 24th, the President signed a bipartisan bill rolling back key provisions of the Dodd-Frank Act (named “Economic Growth, Regulatory Relief and Consumer Protection Act”).
Notes from Spain: Improving Backdrop for the Banking Sector
On a recent trip through Madrid, Spain we had the opportunity to speak to most of the publicly traded Spanish banks, as well as the Bank of Spain. The Hamilton Capital Global Bank ETF (HBG) which is outperforming its benchmark by 14.4%, has ~3% exposure to Spanish banks, while the Hamilton Capital Global Financials Yield ETF (HFY), which is outperforming its benchmark by over 6%, has…