TORONTO, Sept. 28, 2018 /CNW/ - 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 rebalancing methodology to improve the return potential of the ETF.
Units of the ETF will begin trading on Tuesday, October 2, 2018 on the Toronto Stock Exchange ("TSX") under the ticker symbol "HCB".
HCB has closed the offering of its initial units and it will begin trading on the TSX when the market opens in the morning on Tuesday, October 2, 2018.
The Hamilton Capital Canadian Bank Dynamic-Weight ETF (HCB) provides exposure to one of highest quality banking sectors globally, which has a long history of delivering attractive returns and strong dividend growth. HCB's monthly rebalancing strategy is designed to capitalize on the historical mean reversion tendencies of the sector and to generate higher long-term returns while reducing the overall risk of the portfolio.
"The mean reversion tendency of the Canadian banks is one of the most written about themes in Canadian bank investing. We are excited to launch HCB and thereby provide investors with a low cost, efficient vehicle to potentially achieve higher returns, increased diversification, and most importantly reduced risk during periods of market stress, as the benefits of mean reversion have historically been greatest during times of elevated market turbulence," said Rob Wessel, Managing Partner of Hamilton Capital.
HCB will seek to achieve its investment objective by applying a dynamic re-weighting strategy to a portfolio of the six largest Canadian banks. Each month, the portfolio will overweight the three most oversold banks from the prior month and underweight the three most overbought. For more details, please visit: www.hamilton-capital.com/etf/hcb/
HCB complements Hamilton Capital's other ETF offerings:
- HBG (TSX), the Hamilton Capital Global Bank ETF, which is ~23% ahead of the global bank index(1);
- HFY (TSX), the Hamilton Capital Global Financials Yield ETF, which has a dividend yield of 4.57%(2), and;
- HFMU.U (TSX), the Hamilton Capital U.S. Mid-Cap Financials ETF (USD), which has a 15% return since its September 2017 inception.
About Hamilton Capital Partners Inc.
Hamilton Capital is an investment manager headquartered in Toronto. Specializing in global financial services, its team of professionals has over 60 years of experience. The firm employs a specialized investment process, augmented by proprietary research, analysis, and analytical tools to manage its portfolio of investment products. Hamilton Capital is an active commentator on the global financial services sector. The firm's most recent comments and Insights can be found at www.hamilton-capital.com.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Hamilton Capital undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
1 The KBW Nasdaq Global Bank Net Total Return Index in Canadian dollars as of August 31st, 2018.
2 As of September 26, 2018.
SOURCE Hamilton Capital Partners Inc.
For further information: Patrick Sommerville, Partner, Managing Director of Business Development, 416-941-9250, [email protected], or Daniel Carthew, Manager, Business Development, 416-941-9681, [email protected]