In Q1-2018, 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 41%, which is well ahead of the 35% EPS growth reported by the U.S. large-cap financials. Last quarter – Q4-2017 – HFMU.U’s holdings outgrew the large-caps by 10% (i.e., 18% for HFMU.U versus 8% for the large-cap index). Perhaps more meaningful, excluding the…
Hamilton ETFs
HBG’s U.S. Bank Portfolio Posts 39% EPS Growth Y/Y
Hamilton Capital Global Bank ETF (HBG) continues to enjoy material outperformance with comparatively low drawdowns. Since inception, it has reported a 19% annualized return and is 14.4% ahead of the global bank index (in CAD, as of April 30, 2018). One of the main contributors to the strong performance of HBG is the earnings growth of the U.S. bank portfolio. In Q1-18, this portfolio reported yet another…
Hamilton Capital Announces March 2018 Distributions
TORONTO, Mar. 20, 2018 /CNW/ – Hamilton Capital Partners Inc. (“Hamilton Capital”) is pleased to announce the distributions for its ETFs, the Hamilton Capital Global Bank ETF (ticker “HBG”), the Hamilton Capital Global Financials Yield ETF (ticker “HFY”) and the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (ticker “HFMU.U”), all of which trade on the Toronto Stock Exchange, for the period ended March 31, 2018. The ex-dividend…
Canadian Western Bank as a U.S. Mid-Cap Proxy
Canadian Western Bank has achieved highly material long-term outperformance versus its larger peers. In this post, we relate its sizeable outperformance to our preference for U.S. mid-cap banks. In our January 24, 2018 comment, “U.S. Banks: High/Low Growth Areas in One Map (i.e., ‘Follow the Sun’)”, we explained that there are vast demographic differences within the six distinct geographic regions of the United States (five of…
U.S. Banks: Mega-Caps’ Q4 Results in 4 Charts
With reporting season now over, we thought we would offer some key takeaways for the four U.S. mega-cap banks (JPM, C, BAC, WFC). Given that these four firms account for over 33% of the U.S. financials index (S5FINL Index), they have a significant/disproportionate impact on the overall sector’s results and are therefore worth following. In this note, we show operating earnings trends for each bank. As…
HFMU.U Posts 18% EPS Growth Y/Y
With 96% of the fund having reported Q4-2017, the holdings in Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (HFMU.U) have recorded year-over-year portfolio weighted EPS growth of over 18%, which is more than double the 7.6% growth reported by the U.S. large-cap Financials (100% reported). Last quarter – Q3-2017 – HFMU.U’s holdings outgrew the large-caps by 11% (i.e., 12% for HFMU.U versus 1% for the large-cap…
HBG’s U.S. Banks Portfolio Posts 19% EPS Growth Y/Y
February 26, 2018 by Hamilton Capital Hamilton Capital Global Bank ETF (HBG), continues to enjoy material outperformance with comparatively low drawdowns. Since inception, it has reported a 21% annualized return and is 10% ahead of the global banks index (in CAD). HBG also had comparatively low drawdowns during the two large macro corrections and outperformed in 19 of the 20 worst days (see exhibit below). One…
U.S. Banks: Wells Fargo and “Invisible” Bank Taxes
We have written several times on WFC’s inability to grow EPS and its ongoing regulatory problems. That said, even we were surprised that on Janet Yellen’s last day as Chair of the Federal Reserve (“Fed”), the central bank filed a consent order against Wells Fargo (“WFC”) requiring the bank take a number of extraordinary steps to improve corporate governance. While WFC does so, the Fed has…
U.S. Banks: High/Low Growth Areas in One Map (i.e., “Follow the Sun”)
In banking, as in most businesses, geography matters. Population growth supports GDP growth, which in turn drives revenue growth. In general, U.S. bank investors divide the U.S. into six distinct regions: the Northeast, Mid-Atlantic, Midwest, Southeast, Southwest, and West (see chart at the end of this comment). Within these regions, there are 53 metropolitan statistical areas (MSAs) with a population greater than 1 million and nearly…
HFY: Modestly Raising European Bank Exposure
With improving GDP growth and monetary policy backdrop in Europe and lower bank valuations, we have increased the exposure to high quality European banks in the Hamilton Capital Global Financials Yield ETF (HFY). Specifically, we (i) increased European bank exposure by ~700 bps, (ii) reduced “other financials” in the U.S. by ~200 bps, and (iii) reduced European insurance by ~400 bps. As a result of these…
Hamilton Capital Confirms 2017 Annual Capital Gains Distributions
TORONTO, Dec. 29, 2017 /CNW/ – Hamilton Capital Partners Inc. (“Hamilton Capital”) confirmed today the annual distributions of capital gains to unitholders of its ETFs, the Hamilton Capital Global Bank ETF (ticker “HBG”), the Hamilton Capital Global Financials Yield ETF (ticker “HFY”) and the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (ticker “HFMU.U”), all of which trade on the Toronto Stock Exchange, for 2017 tax year. Please…
Hamilton Capital Announces December 2017 Distributions
TORONTO, Dec. 19, 2017 /CNW/ – Hamilton Capital Partners Inc. (“Hamilton Capital”) is pleased to announce the distributions for its ETFs, the Hamilton Capital Global Bank ETF (ticker “HBG”), the Hamilton Capital Global Financials Yield ETF (ticker “HFY”) and the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (ticker “HFMU.U”), all of which trade on the Toronto Stock Exchange, for the period ended December 31, 2017. The ex-dividend date…