In today’s insight – part of our financial innovation series – we highlight how a string of large, transformational acquisitions by market data and technology companies in the Hamilton Financials Innovation ETF (HFT) over the course of 2019 and 2020 have boosted the ETF’s exposure to secular investment themes brought forward by the pandemic. Crucially, the acquisitions provide investors in HFT exposure to emerging themes with…
Insights & Commentary
Four Themes Driving Innovation in Global Financials
In our series on financial innovation, we discuss key issues relating to financial technology and innovation impacting the global financial services sector in general and the Hamilton Financials Innovation ETF (HFT) in particular. Launched on June 1, 2020, HFT invests in a blue-chip portfolio of 30+ established global financial services firms benefiting from powerful, secular trends amplified by the pandemic such as growth of digital payments, digitization…
Fintech/Cdn Banks: Can Standalone Digital Banks Disrupt the Incumbents?
In the coming weeks, we will publish a series of insights on financial innovation discussing several powerful secular trends relating to financial technology/innovation and its impact on the global financial services sector. We will also review how these trends influence the investment strategy of the Hamilton Financials Innovation ETF (HFT). Part I: Can Standalone Digital Banks Disrupt the Incumbents? Part II: Four Themes Driving Innovation in…
U.S. Banks: The Return of M&A – A Clear Sign of Bankers’ Conviction in the Recovery
All values in U.S. dollars unless otherwise noted. As the year draws to a close, the whipsaw nature of 2020 will not soon be forgotten. When the pandemic struck earlier this year and businesses shuttered under direct orders by various governments, how long and how deep the resulting global economic downturn would be was next to impossible to forecast with any sense of accuracy. As businesses…
Canadian Banks: Q4-2020 Takeaways – Recovery Has Started; What’s Next?
In late October, with earnings season approaching, we wrote an insight entitled, “Canadian Banks: Will Q4 Be a ‘Clean-up’ Quarter?”. In that note, we predicted the banks would take steps to accelerate their return to normalized earnings by: (i) building reserves against performing loans (by to $2-$3 bln, to ~$25 bln) in order to prepare for defaults coming in 2021, and (ii) pulling forward expenses, possibly…
Video: Canadian Banks – Key Takeaways from Q4 Earnings
Watch Rob Wessel, Managing Partner of Hamilton ETFs, give an update on the Q4 2020 Canadian bank earnings season:
Hamilton Financials Innovation ETF: Invest in Digital Leaders Reshaping the Financial Sector
When most investors think of the financial sector, they think about the traditional financial subsectors, like commercial banks, investment banks, and insurance. However, the rapid advancement of technological innovation has created an entirely new category of financials and transformed others. In our view, this category has become so large and established that it should comprise a material portion within all investors’ financial sector equity allocations. Not…
Global Financials: The Most Attractive/Important Investment Themes in 2021
Hamilton Global Financials ETF (HFG), which launched on June 26, 2020, is focused on investing in high quality global financial stocks with strong balance sheets, diversified income streams and exposure to favorable, medium- and long-term cyclical and secular trends. This focus aims to provide Canadian investors with diversified exposure to the most attractive themes within the global financial sector while maintaining a volatility profile not materially…
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…