“We are excited to expand our innovative ETF offerings with the launch of HFIN,” said Pat Somerville, Partner and Head of Business Development at Hamilton ETFs. “With a structure similar to HCAL, Canada’s top performing Canadian bank ETF in 2021, HFIN intends to provide investors with diversification by investing in the top 12 Canadian financials, including the largest banks and insurers.”
Last year, the Hamilton ETF managed to more than triple its AUM over the course of 12 months, managing approximately $950 million in assets in October. At the time, it had approximately $240 million in assets managed in HCAL, the Hamilton Enhanced Canadian Bank (HCAL) ETF. Today, the Hamilton ETF has more than $1.2 billion in AUM.
With a modest 25% leverage applied to the portfolio, HCAL has managed to deliver a rich dividend yield while exhibiting a volatility profile similar to individual Canadian banks. In its first year, the fund was up 60.4%, outperforming its closest competitors by 10%.
According to Somerville, HFIN has an initial target return of more than 5%, and is geared towards long-term investors who want to achieve higher monthly earnings and increased growth potential from exposure to the Canadian financial services sector, which the Hamilton ETF believes. —That’s ready for continuous solid performance.