Hamilton hatches new Australian financials ETF

Hamilton hatches new Australian financials ETF

Hamilton hatches new Australian financials ETF

Hamilton Capital has launched the Hamilton Capital Australian Financials Yield ETF (TSX: HFA). An active strategy that’s focused on equities from Australia-based financial-services firms, the currency-hedged strategy seeks long-term returns from regular dividend income along with modest long-term capital growth.

“We are very excited to launch HFA, which is intended to provide investors with exposure to a world class financial services sector with a history of long-term outperformance versus the Canadian financials,” said Rob Wessel, managing partner at Hamilton Capital. “Australia is also home to some of the world's best capitalized banks, which outperformed their Canadian peers during the global financial crisis.”

According to Wessel, the fund focuses on high dividend-yielding, Australia-listed stocks, which the firm considers to be well suited for investors who need attractive monthly dividends and portfolio diversification. HFA will also rely on a covered-call strategy, sub-advised by Horizons ETFs management, to help drive additional income and help mitigate downside risk.

With a management fee of 0.65% and a target yield of 6.5% paid monthly, HFA joins the firm’s other financial-services equity ETFs including:

  • HCB (TSX), the Hamilton Capital Canadian Bank Variable-Weight ETF, a rules-based "mean reversion' strategy with monthly rebalancing and monthly distributions
  • HFY (TSX), the Hamilton Capital Global Financials Yield ETF, an actively managed portfolio of global financials with a dividend yield of 4.91%(1)
  • HBG (TSX), the Hamilton Capital Global Bank ETF, an actively managed portfolio of global banks, which is ~19% ahead of the global bank index(2)
  • HFMU.U (TSX), the Hamilton Capital U.S. Mid-Cap Financials ETF (USD), which offers exposure to a higher growth category of U.S. financials with a history of long-term outperformance versus their large-cap peers

 

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