- Exposure to “big-6” Canadian banks using mean reversion strategy with monthly rebalancing
- Monthly distributions
- Each month, HCB will overweight the three most oversold banks from the prior month (~80%) and underweight the three most overbought (~20%)
- HCB’s mean reversion strategy seeks to provide the following benefits:
- Potential for higher long-term returns by capitalizing on mean reversion tendencies of the sector
- Increased diversification
- Reduced risk during periods of market stress, when benefits of mean reversion are typically the greatest
HCB Manager Commentary
|1||BNS||Bank of Nova Scotia||$93 bln||27%|
|2||TD||Toronto-Dominion Bank||$142 bln||27%|
|3||NA||National Bank of Canada||$22 bln||27%|
|4||BMO||Bank of Montreal||$68 bln||7%|
|5||RY||Royal Bank of Canada||$148 bln||7%|
|6||CM||Canadian Imperial Bank of Commerce||$54 bln||7%|
1. As at October 2, 2018, as a percent of net asset value.
The investment objective of Hamilton Capital Canadian Bank Variable-Weight ETF (“HCB”) is to generate long-term returns consisting of long-term capital growth as well as regular dividend income by investing in an equity portfolio of Canadian banks. HCB will employ a proprietary rules-based portfolio rebalancing methodology in an effort to improve the return potential of the ETF.
HCB will seek to achieve its investment objective by applying a dynamic re-weighting strategy to a portfolio of the six largest Canadian banks. Such Canadian banks to be invested in are: the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank or in the event of a merger, acquisition or other significant corporate action or event of or affecting any such bank, the top six Canadian banks listed on the Toronto Stock Exchange or other recognized exchange in Canada by market capitalization (each a “Bank” and collectively the “Banks”).
|Ex-Dividend Date||Record Date||Payment Date||Payment Amount||Type||Distribution Frequency|
The estimated annualized yield is 3.32%, calculated using the October 12, 2018 net asset value per unit.
2016-01-14 Hamilton Capital products among a crowded field of ETF hopefuls (Globe and Mail)
To view the filings of the Hamilton Capital Canadian Bank Variable-Weight ETF (HCB) on SEDAR, please click here.
Quarterly Summary of Investment Portfolio
Independent Review Committee
2018-03-01 2017 Annual Report to Securityholders
Disclaimer: A prospectus containing important information relating to these securities has been filed with the securities commissions or similar authorities in certain jurisdictions of Canada. Copies of the prospectus may be obtained from email@example.com, www.hamilton-capital.com or on the SEDAR website (www.sedar.com).
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by Hamilton Capital Partners Inc. (the “Hamilton Products”). The Hamilton Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Hamilton Products. Please read the prospectus before investing.