Hamilton Capital Canadian Bank Variable-Weight ETF (HCB)

Highlights
  • 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

Holdings1
# Ticker Name Market Cap Weight
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.

Overview

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”).

Distributions
Ex-Dividend Date Record Date Payment Date Payment Amount Type Distribution Frequency
2018-12-28 2018-12-31 2019-01-11 $0.042 Cash Monthly
2018-11-29 2018-11-30 2018-12-12 $0.042 Cash Monthly
2018-10-30 2018-10-31 2018-11-13 $0.042 Cash Monthly

The estimated annualized yield is 3.32%, calculated using the October 12, 2018 net asset value per unit.

News

2018-10-16   Hamilton Capital Announces Q4 2018 Distributions and Name Change for HCB (CNW)

2018-09-28   Hamilton Capital Launches Hamilton Capital Canadian Bank Dynamic-Weight ETF (CNW)

2016-01-14   Hamilton Capital products among a crowded field of ETF hopefuls (Globe and Mail)

Documents

To view the filings of the Hamilton Capital Canadian Bank Variable-Weight ETF (HCB) on SEDAR, please click here.

ETF Facts

2018-08-09   HCB/HCB.U Summary (English)  |  (French)

Prospectus

2018-08-09   Prospectus (English)  |  (French)

Financial Statements

n/a

Quarterly Summary of Investment Portfolio

n/a

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 etf@hamilton-capital.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.

Are you an accredited investor?

Products offered by Hamilton Capital Partners Inc. have a minimum subscription amount of $150,000, unless you meet the definition of an "accredited investor" under National Instrument 45-106 Prospectus and Registration Exemptions.

If you meet the definition of an "accredited investor", you may invest a minimum of $25,000. Please consult the offering documents to determine your qualification status. Investment Advisors should consult their company's internal policies.

The Subscriber must be (and will be at the time the Subscription is executed) an accredited investor under National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106")

Accept Decline