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

Highlights
  • 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 40.3% (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
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.

Exposures1

Top 10 Holdings1

 

# Ticker Name Sub-Sector Market Cap (US$) Weight
1 SIVB SVB Financial Group (CA) Banks $1.2 bln 3.4%
2 STL Sterling Bancorp (NY) Banks $4.9 bln 3.2%
3 SBCF Seacoast Banking Corp (FL) Banks $1.2 bln 3.0%
4 ETFC E*Trade Financial Wealth Mgmt $14.4 bln 3.0%
5 RJF Raymond James Financial Wealth Mgmt $12.6 bln 2.7%
6 PFBC Preferred Bank (CA) Banks $1.0 bln 2.7%
7 WAL Western Alliance Bancorp (AZ) Banks $6.0 bln 2.6%
8 IBTX Independent Bank Group (TX) Banks $2.0 bln 2.5%
9 PPBI Pacific Premier Bancorp (CA) Banks $1.8 bln 2.5%
10 PNFP Pinnacle Financial Partners (TN) Banks $5.0 bln 2.4%

1. As at April 30, 2018, as a percent of net asset value.

Additional Portfolio Disclosure as of April 30, 2018
  • HFMU.U had 60 holdings, including 42 banks, 9 insurers, 4 asset managers, and 4 investment banking / brokerage companies
  • Of the 42 banks, 38 have total assets of less than $100 billion
  • The banks are headquartered in 29 different states, across all regions, including 21% of the portfolio in the West, 24% in the Southeast, 12% in the Midwest, 11% in the Southwest, 23% in the Mid-Atlantic, and 6% in the Northeast
  • Of the 9 insurance companies, there are 5 P&C insurers, 2 life insurers, and 2 multi-line insurers

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
2018-03-28 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 1.08%.*

* Calculated using the March 16, 2018 net asset value per unit.

Documents

To view the filings of the Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (HFMU.U) on SEDAR, please click here.

Summary Document

2017-08-04   HFMU.U Summary (English)  |  (French)

Prospectus

2017-08-04   Prospectus (English)  |  (French)

Financial Statements

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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