Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (HFMU.U/HFMU)

CAD units are now trading on the TSX under the symbol HFMU. USD units remain available under the symbol HFMU.U.

Highlights1,2
  • Available in USD (HFMU.U) and in CAD (HFMU)
  • ~15% return since inception, outperforming U.S. large‐cap financials
  • Actively-managed portfolio of U.S. mid-cap financials (US$0.5 bln to US$20 bln market-cap)
  • Consensus portfolio-weighted EPS growth of 39.9% (2018E); 12.8% (2019E)
  • Targeted exposure to firms operating in higher growth regions/states with greater rate sensitivity and M&A potential
  • Universe as large as the Canadian equity markets with over 500 firms and combined market cap over $2 trillion
  • Managed by portfolio management team with over 60 years’ experience
  • Scroll down for HFMU.U Manager Commentary
Performance 1 Mo 3 Mo 6 Mo YTD 1 Yr SI1
U.S. Mid-Cap Financials ETF (USD) (HFMU.U) 1.2% (0.6%) 3.1% 3.7% 14.8% 14.8%

1. Performance is annualized since inception on February 6, 2017, as at August 31, 2018.
2. S&P 500 Financials Index (S5FINL, “U.S. Large‐Cap Financials”).

HFMU.U Manager Commentary

HFMU.U: Outperforms U.S. Large-Cap Financials in Year #1 Rising ~15%, Despite Two Formidable Obstacles (September 4, 2018)

HFMU.U: Posts 35% EPS Growth Y/Y; 900 bps Ahead of U.S. Large-Cap Financials (August 3, 2018)

Notes from Texas: Lone Star Shines Brighter (June 21, 2018)

HFMU.U: Global Exchanges and E-Brokers: Strong gearing to favorable secular and cyclical themes (June 12, 2018)

HFMU.U: U.S. Banks: Will Mid-Cap Bank M&A Accelerate Post-Dodd-Frank Rollback (3 Deals in 3 Weeks)? (May 28, 2018)

HFMU.U Posts 41% EPS Growth Y/Y; well ahead of the U.S. Large-Caps (May 15, 2018)

HFMU.U: U.S./Canadian Banks: Using CWB to Highlight Benefits of U.S. Mid-Cap Exposure (Mar 6, 2018)

+ More commentary
HFMU.U Historical NAV

The chart of Historical NAV does not represent performance of HFMU.U. The chart shows the daily movements of the NAV and has been adjusted to reflect historical distributions.

Exposures3

Top 10 Holdings3
# Ticker Name Sub-Sector Market Cap (US$) Weight
1 STL Sterling Bancorp (NY) Banks $5.2 bln 3.0%
2 PNFP Pinnacle Financial Partners (TN) Banks $5.0 bln 2.9%
3 PPBI Pacific Premier Bancorp (CA) Banks $2.5 bln 2.6%
4 SIVB SVB Financial Group (CA) Banks $17.2 bln 2.6%
5 SBCF Seacoast Banking Corp (FL) Banks $1.5 bln 2.6%
6 ETFC E*Trade Financial Wealth Mgmt $15.3 bln 2.5%
7 IBTX Independent Bank Group (TX) Banks $2.0 bln 2.5%
8 WAL Western Alliance Bancorp (AZ) Banks $6.1 bln 2.5%
9 ESNT Essent Group Ltd Insurance $4.3 bln 2.4%
10 RJF Raymond James Financial Wealth Mgmt $13.6 bln 2.3%

1. As at August 31, 2018, as a percent of net asset value.

Overview

The investment objective of Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (“HFMU.U”) is to seek long-term returns, consisting of long-term capital growth and dividends from an actively managed equity portfolio of, primarily, United States-based mid-cap financial services companies.

HFMU.U will seek to achieve its investment objective through the selection of equity investments in financial services companies that, in the Portfolio Adviser’s view, represent an attractive investment opportunity, relative to other such companies. In determining which companies to include in the ETF’s portfolio, the Portfolio Adviser will apply specialized analysis and expertise, reviewing a company’s individual attributes such as its valuation and growth prospects, as well as the macro environment, including, but not limited to, GDP growth, inflation and interest rate trends, fiscal and monetary policies, and regulatory trends within its subsector, or geography.

The ETF’s portfolio is anticipated to be comprised primarily of mid-cap (i.e., having a market capitalization of between US$500 million and US$20 billion) companies based in the United States. However, the ETF’s investments may be selected from any subsector, country, or capitalization level of the global financial services sector. Specifically, the portfolio may include, but is not limited to, commercial and investment banks, insurance companies, brokerages, asset managers, exchanges, real estate investment trusts and other investment companies. The ETF does not seek to hedge its exposure to the U.S. dollar back to the Canadian dollar.

Distributions
Ex-Dividend Date Record Date Payment Date Payment Amount Type Distribution Frequency
2018-09-27 2018-09-28 2018-10-11 US$0.01500 Cash Quarterly
2018-06-28 2018-06-29 2018-07-12 US$0.03000 Cash Quarterly
2018-03-28 2018-03-29 2018-04-11 US$0.05000 Cash Quarterly
2017-12-28 2017-12-29 2018-01-11 US$0.05016 Cash Quarterly

The estimated annualized yield is 0.34%.*

* Calculated using the September 17, 2018 net asset value per unit.

News

2018-09-21   Hamilton Capital Announces September 2018 Distributions (CNW)

2018-06-22   Hamilton Capital Announces Launch of Canadian Dollar Units of Hamilton Capital U.S. Mid-Cap Financials ETF (USD) and June 2018 Distributions (CNW)

2018-03-20   Hamilton Capital Announces March 2018 Distributions (CNW)

2017-12-29   Hamilton Capital Confirms December 2017 Annual Capital Gains Distributions (CNW)

2017-12-19   Hamilton Capital Announces December 2017 Distributions (CNW)

2017-09-20   Hamilton Capital Announces September 2017 Distributions (CNW)

2017-09-01   Hamilton Capital Launches Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (HFMU.U) (CNW)

2016-12-13   Howard J. Atkinson Joins Board of Hamilton Capital (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 U.S. Mid-Cap Financials ETF (USD) (HFMU.U) on SEDAR, please click here.

ETF Facts

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

Prospectus

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

Financial Statements

2018-06-30   Interim Financial Statements (English)  |  (French)

2017-12-31   Annual Financial Statements (English)  |  (French)

Quarterly Summary of Investment Portfolio

2018-03-31   2018Q1 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 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")

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